Overview
- Media reports say HM Treasury and HMRC are exploring a reduced-rate employer’s National Insurance charge on partnership profits rather than salaries.
- CenTax estimates suggest roughly 190,000–200,000 partners could be brought into scope, raising around £1.9–£2.0 billion a year.
- Professional services would be most affected, with analysis indicating a typical solicitor on £316,000 could pay about £23,000 more.
- The discussion comes as the Treasury confronts a reported fiscal shortfall of about £30 billion and higher borrowing set out by the ONS.
- Legal industry figures warn of damage to LLP models and practical complexities, while Rachel Reeves has dismissed some Budget speculation as “ridiculous.”