IEIM721100 - Limited Liability Partnerships

A limited liability partnership (LLP) is a legal person in its own right and is a separate entity from its members and so can be an intermediary in its own right. Therefore, the LLP itself may have an obligation to report under the Regulations. Where a UK LLP has an obligation to report, HMRC would not expect members of the LLP to report separately, as they would be able to rely on the report made by the LLP. Where an LLP has reached a view as to whether a report is needed in relation a particular arrangement, HMRC would not expect the members of the LLP to re-evaluate that decision in order to determine whether they have a separate obligation to report. In considering whether a person who is a member of an LLP is liable for a penalty, HMRC will take into account any processes and procedures that the LLP had in place in applying regulation 20(3) (see IEIM750080 and IEIM750090).

Whether a member of an LLP is an intermediary in their own right will depend on the facts of the case.