Controversial measures to stop employees claiming partnership status to avoid tax are to go ahead, chancellor George Osborne revealed in his autumn statement today.

Announcing his determination to ‘ensure the tax advantages of partnerships are not abused’, the chancellor revealed that changes proposed in the draft National Insurance Bill earlier this year would be brought in to force. 

The new rules will require many members of limited liability partnerships to pay higher national insurance contributions by removing an automatic exemption. They follow an announcement in the budget that the government would remove the ‘presumption’ that LLP members are self-employed rather than employees.

The Law Society warned that the proposed measures would have have ‘far-reaching’ implications for the legal and business community, and risked damaging the UK’s reputation as an attractive business location.

The Law Society will hold a webinar on the autumn statement’s impact on company structures on 16 January. See