SLEEPING OR INACTIVE LIMITED PARTNER?

News: May 2013

SLEEPING OR INACTIVE LIMITED PARTNER?

HMRC have suddenly announced that they now consider that Sleeping and Inactive Limited Partners are liable to pay Class 2 NICs as self-employed earners and Class 4 NICs in respect of their taxable profits.

Sleeping or Inactive Limited Partners who have not paid Class 2 or Class 4 NICs for a past period will not be required to pay them but they will be expected to do so from now on.

You may be able to still avoid NICs by seeking exemption due to small levels of earnings, or going for deferment in certain circumstances. There may also be a legal argument to use against HMRC and we will keep you up to date on any developments.

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