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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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.