How do LLPs pay employees?

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Morning

My name is Jay, and I’m a solicitor in West Lothian. I’d like to form an LLP here with another partner. We would also be taking on clerical staff. How do I actually pay employees with an LLP? I understand how to distribute profits to members, but I’ve never taken on actual staff before.

Thanks for your help

Ewan

Answers

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Hi Ewan,

You will have to register the partnership with HMRC as an employer. This means you will probably have to operate Pay As You Earn (PAYE) as part of your payroll.

As an employer, you are responsible for deducting Income Tax and National Insurance from your employees’ wages and paying these deductions to HMRC. You may also have to pay Employer’s National Insurance.

You can run payroll yourself or you can pay someone else to do it for you. Either way, you will have to keep a number of records about your employees and provide their details to HMRC.

Take a look at this HMRC guide about employing people for the first time.

a year ago
 

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