- Bonus payments received by LLP members were earnings from previous employment (Charles Tyrwhitt LLP v HMRC)
- Why it matters
- Case details
Tax analysis: In HMRC v Charles Tyrwhitt LLP, the Upper Tribunal (UT) upheld the decision of the First-tier Tax Tribunal that bonus payments received by members of an LLP were earnings derived from employment (and therefore subject to Class 1 NICs), because the bonuses were paid in respect of earlier periods when the individuals were employees of the LLP and the source of those payments did not change because of the individuals becoming members of the LLP before the conditions for making the bonus payments were met and the payments themselves made.
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