The government is concerned that limited liability partnership structures allow disguised employment to take place, whereby people that are ostensibly partners in fact have a guaranteed income and little decision-making power.
The worry for the government is that the well-established arrangement gives rise to tax discrepancies.
While becoming a full equity partner in an LLP has traditionally been funded through bank loans, some salaried partners at mid-sized and smaller firms are finding banks are reluctant to provide unsecured lending to fund their partnerships.
Independent finance provider Syscap has secured funding from a bank to provide unsecured three-year loans for salaried partners in accountancy firms to meet the HMRC requirement. Additionally, there will be no requirement for partners affected to take a second charge mortgage on their homes, as many banks are demanding.
Syscap CEO Philip White said: An awful lot of salaried partners are finding that getting bank lending in order to retain self-employed status in time for the deadline is not easy.
For a lot of these partners, an unsecured loan is a much simpler and more attractive solution, but that hasnt been easy to find in recent times. Thats the area of need that Syscap is hoping to address with this new line of funding for salaried partners.