Last week, UK newspapers reported that the Chancellor Rachel Reeves was considering ‘closing the loophole’ for limited liability partnerships (LLPs) when it comes to employer’s national insurance.

Currently, the equity partners of LLPs, which many accountancy firms have, are considered self-employed and, therefore, the LLP is not subject to employer’s national insurance.

According to reports, the Chancellor considers this unfair and was looking to address it in her Budget on 26 November.

ICAEW has had some enquiries from members about the proposals and what it intends to say on the matter. It should be noted that the measure has not been confirmed by anyone at the Treasury, and at this stage should be considered a rumour.

ICAEW is, however, speaking with the government ahead of the Budget and is stressing that it should avoid any more tax increases on business in the next Budget, to avoid seriously damaging economic growth.

“Professional and business services are one of the government’s eight growth sectors and any measure that actively compromises firms’ success will risk undermining growth,” said Iain Wright, ICAEW Chief Policy and Communications Officer.

“Constant rumours and speculation fuel uncertainty and destabilise business, so we encourage the government to be clear about their plans as soon as they can to give firms the opportunity to plan ahead and allow them to concentrate on creating jobs and prosperity.”

ICAEW will be offering comprehensive analysis on the Budget announcements, including a webinar from the Tax Faculty. Visit icaew.com/budget to stay up to date.