I have just started working at a LLP as an employee.
After recently learning of the company structure, a few elements have concerned me, specifically with regards to IR35.
I have attached a diagram showing the company structure. There are currently 15 employees and 13 partners.
The ultimate goal for any employee is to be "promoted" to partner. This involves resigning from the company, and then being made a member of the partnership. This tends to be after a number of years of service and integration into the "old boys club". The partnership openly brag that this will involve a huge jump in salary, purely from tax relief. Upon promotion, there is no change in role, the employee continues to do the same thing every day.
The LLP offers services to hundreds of clients. The services offered are very repetitive and very similar in nature. The work can be performed by either a partner OR an employee, and is purely based on availability (who is free first in the company calendar).
All work is carried out through the LLP. Clients have no knowledge of the LTD companies owned by the partners.
Partners are paid monthly into their business bank account, they are then given a profit-share dividend at the end of the year. Their "salary" is forecasted/extrapolated on the amount of days that they are predicted to work on the year. For each day they work, they receive a 30% cut of the day-rate sold to the client.
The company actually has their own full-time accountant. I have discussed my concerns with the accountant - his response is that IR35 isn't applicable as the partners are classed as "subcontractors" and that the company feigns that partners have the right to refuse any job.
I enjoy working at the company; but with 4 children, job safety is important to me. The potential immorality of the setup also concerns me.
I would appreciate any advice whatsoever. I would like to keep this anonymous for now, but I am happy to provide any details as required. Thank you.
