PM260200 - When an individual is treated as a salaried member
This part looks at the effect on the individual member when they cease to be a member and start to be treated as a Salaried Member.
Self-employment:
This section looks at the period whilst they are treated as a member, and self-employed for tax purposes.
Example
M has been a member of ARC LLP since 1 July 2010. ARC LLP commenced trading in 2001 and has had an accounting date of 30 June throughout. Prior to 6 April 2014, ARC LLP carries out a review of its membership as a result of the new Salaried Member rules.
The review shows that M satisfies all three conditions and so M will be a Salaried Member as of 6 April 2014.
For tax purposes, M will cease to be a partner of ARC LLP on 5 April 2014. This means that M바카라 사이트™s basis period for the 2013/14 tax return will follow the cessation rules and run from the day after the previous basis period ends to the date M ceases to be a partner. A just and reasonable apportionment of profits earned from 1 Jul 2013 to 5 Apr 2014 should be included. M can also claim overlap relief in this final period.
M바카라 사이트™s self-assessment returns will be as follows:
Tax Year Basis period Profits (£) Overlap period Overlap profits/relief (£)
2010/11 1 Jul 2010 - 5 Apr 2011 60,000
2011/12 1 Jul 2010 - 30 Jun 2011 79,000 1 Jul 2010 - 5 Apr 2011 60,000
2012/13 1 Jul 2011 - 30 Jun 2012 81,000
2013/14 1 Jul 2012 - 5 Apr 2014 140,000 60,000
Employment:
As of 6 April 2014, M will be an employee of ARC LLP for tax purposes. M바카라 사이트™s entitlement under the LLP agreement is treated as coming from an employment. ARC LLP will need to account for PAYE on amounts paid or credited to M, including M바카라 사이트™s monthly drawings and any amounts in respect of M바카라 사이트™s variable profit share. ARC LLP will also be liable to pay employer바카라 사이트™s Class 1 NICs. M will not need to complete a tax return for 2014/15 (unless M has other income that needs to be reported through Self-Assessment) as M has paid M바카라 사이트™s income tax and NICs through PAYE.