The Court of Appeal held that the First-tier Tribunal and Upper Tribunal both erred in law in accepting a wide construction of Condition B of the ‘salaried members’ rules for limited liability partnerships and remitted the case to the FTT to reconsider the evidence in the light of the correct test.  

Summary 

The Court of Appeal held that the First-tier Tribunal (FTT) and Upper Tribunal (UT) erred in law in accepting a wide construction of Condition B of the ‘salaried members’ rules for limited liability partnerships (LLPs) and remitted the case to the FTT to reconsider the evidence in the light of the correct test. 

Background 

The respondent (and cross-respondent) LLP provided investment management services to the group’s funds and back-office services to other group entities. HM Revenue and Customs (HMRC) issued PAYE determinations and a decision