Policy paper
Class 2 NICs: inactive members of Limited Liability Partnerships
This Tax Information and Impact Note affects Inactive members of Limited Liability Partnerships (LLPs) who may be liable to pay Class 2 National Insurance contributions (NICs).
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Details
In April 2013 HM Revenue and Customs announced a change in interpretation of the law so that inactive partners in partnerships were liable to pay Class 2 and 4 NICs.
For the purpose of Class 2 NIC, from April 2015, a change to regulations is proposed to ensure that for the aviodance of doubt, the position of inactive members of LLPs follow that of Sleeping Partners and inactive Limited Partners.
Updates to this page
Published 19 March 2015