½Û×ÓÊÓÆµ

Partnerships, directorships and dismissal

Produced by Tolley in association with
Employment Tax
Guidance

Partnerships, directorships and dismissal

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

In some situations, the ordinary rules relating to dismissals do not apply or additional rules need to be considered. Two of the most important of these are when a partnership dissolves and when an employee is also a director of a company.

Partnerships

Partners in an unlimited partnership are not also employees of the partnership and do not enjoy the same statutory employment rights as employees on dismissal. A person who is employed by an unlimited partnership is employed by each of the partners acting together.

Theoretically, this means that when a partner joins or leaves, the contract of employment must come to an end, as the employee is no longer employed by the same legal entity.

Scots law has resolved this by finding that a partnership has a separate legal personality from the individual partners, whereas English law prefers to see it differently.

The situation when one or more partners leave a firm ― or new ones join ― but otherwise the partnership continues is a technical dissolution,

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Hannah Freeman
Hannah Freeman

Barrister at Old Square Chambers , OMB, Employment Tax


Hannah is an experienced employment law specialist advising on all forms of discrimination, maternity and paternity rights, unfair dismissal, contractual disputes, part-time working and TUPE. Hannah acts for claimants and respondents in both the public and private sectors, including the NHS, the police, local authorities, educational institutions, financial services and the hospitality industry, as well as providing training and support to in-house legal and HR teams.

Powered by
  • 26 Nov 2023 14:53

Popular Articles

Foreign exchange issues

Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)

14 Jul 2020 11:44 | Produced by Tolley Read more Read more

Ministers of religion

Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong

14 Jul 2020 12:14 | Produced by Tolley Read more Read more

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more Read more