Taxing UK LLPs Would Hurt Growth, Accountancy Group Warns

The UK’s expected employment taxes on limited liability partnerships could lower tax collection as professional services firms would look to restructure themselves, an accountancy group warned Thursday.

The UK government’s reported plans to impose employer national insurance on LLPs would disrupt a valuable business sector, the Institute of Chartered Accountants in England and Wales said in a statement.

“A policy designed to raise revenue could end up raising less—shrinking the UK tax base, slowing growth, and undermining the stability and competitiveness that business needs to invest with confidence,” ICAEW chief executive Alan Vallance said in an emailed statement.