How is LLP profit taxed for partners?

Each partner pays income tax on their profit share at their marginal rate (20%, 40% or 45%) after deducting the £12,570 personal allowance. Class 4 NIC (6% on £12,570–£50,270; 2% above) and Class 2 NIC (£179.40/year) are also due if profit exceeds £12,570.

What are the salaried member rules for LLPs?

Under the salaried member rules (ITTOIA 2005), an LLP member who has a guaranteed salary, little economic risk, and limited significant influence may be reclassified as an employee for NIC purposes. This means the LLP pays employer NIC and the member pays employee NIC instead of Class 4.

What is Class 2 NIC for self-employed partners?

Class 2 NIC is £3.45 per week (£179.40 per year) for 2024/25, payable if your profit exceeds the small profits threshold of £12,570. It counts towards the state pension and contributory benefits.

LLP & Partnership Profit Allocation Calculator

Allocate partnership profit across up to 4 partners and calculate each partner's income tax, Class 4 NIC, Class 2 NIC and net take-home 2024/25.

LLP & Partnership Profit Allocation

2024/25 — Income Tax, Class 2 & Class 4 NIC per partner

Total partnership profit (£)

Before any partner drawings or salaries

Partners (up to 4)

Name

Profit share %

Has guaranteed salary (salaried member)Already paying Class 2 elsewhere

Name

Profit share %

Has guaranteed salary (salaried member)Already paying Class 2 elsewhere

Name

Profit share %

Has guaranteed salary (salaried member)Already paying Class 2 elsewhere

Name

Profit share %

Has guaranteed salary (salaried member)Already paying Class 2 elsewhere

Profit shares must total 100%. Leave share blank to exclude a partner slot.

Per-Partner Results

Partner	Profit share	Income tax	Cl.4 NIC	Cl.2 NIC	Total tax	Take-home	Eff.rate
Partner 1	£50,000.00	£7,486.00	£2,245.80	£179.40	£9,911.20	£40,088.80	19.8%
Partner 2	£50,000.00	£7,486.00	£2,245.80	£179.40	£9,911.20	£40,088.80	19.8%
Totals	£100,000.00	£14,972.00	£4,491.60	£358.80	£19,822.40	£80,177.60	—

Total partnership profit£100,000.00

Total tax & NIC across partners£19,822.40

Total net take-home across partners£80,177.60

Income tax bands 2024/25 (England, Wales & Northern Ireland)

Band	Profit range	Rate
Personal Allowance	£0–£12,570	0%
Basic rate	£12,571–£50,270	20%
Higher rate	£50,271–£125,140	40%
Additional rate	Above £125,140	45%

Class 4 NIC rates 2024/25

Profit range	Rate
£12,570–£50,270	6%
Above £50,270	2%

Salaried member rules

An LLP member with a guaranteed salary, limited economic risk and no significant influence may be treated as an employee under ITTOIA 2005 s863A–s863G. The LLP would then owe employer NIC at 13.8% / 15% on the salary element.

Disclaimer: This calculator is for guidance only. Partnership taxation can be complex — consult a qualified accountant.