Rachel Reeves should end national insurance loophole for law firms | Law

The chancellor and prime minister are wringing their arms on the painful decisions they need to make to steadiness the nation’s funds now they’re fairly rightly unable to take advantage of weak disabled folks shoulder the burden (How one can steadiness the UK books: six choices open to Rachel Reeves, 4 July). Maybe it’s time to resurrect an thought circulating earlier than final autumn’s funds: change the foundations on nationwide insurance coverage (NI) contribution charges for LLP (restricted legal responsibility partnership) companions to convey them into line with firm staff.As reported within the Legislation Society Gazette in November final 12 months, closing this NI “loophole” may have raised £4bn from simply the 4 “magic circle” LLP regulation companies. This would appear appropriate with Labour’s manifesto pledge to not elevate tax or NI on staff, however perhaps this might upset too a lot of Keir Starmer’s wealthy lawyer cronies?The change appears to have been extensively anticipated final 12 months, however quietly dropped with out hint. Until there’s an excellent purpose why this shouldn’t be applied (through which case, let’s hear it), I might strongly urge Starmer and Rachel Reeves to rethink this resolution.This strikes on the coronary heart of financial justice. The present system favours the rich and well-advised – together with former colleagues of Starmer in elite authorized companies – whereas peculiar working individuals are requested to hold extra of the burden.If Labour’s financial credibility hinges on equity and duty, then that is precisely the place Reeves ought to be wanting – not at additional cuts on the expense of nearly all of taxpayers and people in most want.David ReedTaunton, Somerset