We have different guides for different business combinations. This page provides links.

Popular business combinations in use in the UK currently include:

  • A company plus service LLP
  • An LLP plus a service company
  • An LLP with corporate partners

If a company is paying a combination of tax at marginal rates of corporation tax and also incurring Employers National Insurance on salaries and bonuses it may be time to consider the advantages of setting up an LLP.

Conversely, where partners are paying higher rate tax, a company run alongside an existing LLP is useful as a "money box" and can shelter partners from top rates of tax.

A further combination is combining a corporate partner(s) with an LLP.

There are numerous advantages of using an LLP/company or company/LLP combination. This makes it extremely flexible, however, there are also substantial pitfalls. Which structure is right for the client depends on the individual circumstances.

There has been a recent focus on combating tax avoidance achieved using these structures and the 2014 Finance Act saw the introduction of a number of changes to partnerships and how profits are taxed. This has lead to a decrease in popularity of these structures and in some cases an unwinding of the structure. These structures can still be efficient and will work in the right circumstances.

Planning guides:

Partnerships (unlimited or limited?)

Will I pay less tax if I trade via an LLP?

Running an LLP in tandem with a company (Masterclass) 

These summarise the key issues for advisers, show how to get started and consider the advantages, pulling together case law to illustrate some of the potential pitfalls for tax including loans, benefits and associated companies, and company law.