Rachel Reeves announced several changes in her Autumn Budget. We've broken it all down so you know how it could impact your finances.
Article last updated 1 December 2025.
What’s in the news?
The Times has reported that Rachel Reeves is looking at extending the equivalent of employer national insurance contributions (NICs) to limited liability partners, although it has since suggested that National Health Service GPs could be exempt. Any move on NICs wouldn’t affect general partnerships.
This follows calls from think-tanks for ‘Partnership NICs’, which would align taxes on partners more closely with taxes on employees.
What does it all mean?
This could mean NICs being charged on the profits of the partnership at the same 15% rate currently paid by employers, although there’s limited further detail. This increase in the NI tax take would follow last year's increase in employers’ NI.
Olly Cheng, Senior Financial Planning Director at Rathbones, supports the wealth planning needs of partners across a range of sectors. He says: “Some of the commentary on partnerships implies that partners in limited liability partnerships are effectively employees and should be treated as such. Our experience working with clients within partnerships suggests differently. They generally aren't paid a fixed salary, and their pay varies with profits. They also don't get all the benefits that come with being employed, such as employer pension contributions. On top of this, the complexity of calculating tax liabilities for partners can mean that the marginal tax rates applied can exceed those for employees with similar earnings.”
What should you do?
Historically, the Treasury has often used the media to gauge public reaction to possible tax moves.
While it’s sensible to stay informed about potential changes, we recommend avoiding any hasty decisions until any details are confirmed. If you’d like to understand how a change might affect your income, cashflow modelling can be a valuable exercise. A financial planner can help model different income scenarios, showing what the impact could look like against your current income needs and long-term goals.
If, ahead of the Budget, you have any questions or concerns about your tax partnership situation and how the potential changes could affect you, please get in touch with your Rathbones contact or fill out our contact form below. We’re always here to help.
This information is based on our current understanding of HMRC tax regulations in the UK. Tax treatment depends on your individual circumstances and may be subject to change in future.
