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HMRC internal manual

Employment Status Manual

HM Revenue & Customs
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Salaried Members: Condition B: significant influence


Condition B is, in essence, looking at the role played by the individual member in the business. Put simply Condition B is asking whether it can be said that the individual is the business rather than merely working for the business?

This reflects that fact that a partnership is a group of people who are carrying on a business in common with a view to profit. In short, in a partnership, the partners are the business.

Condition B is satisfied if the mutual rights and duties of the members of the LLP, and of the LLP and its members, do not give the individual member significant influence over the affairs of the LLP.

ESM64005 provides an overview of Condition B, with links to the relevant guidance.

For those that prefer, the section contains the following guidance:


ESM62005 Condition B - Overview
ESM62015 Condition B – The LLP Agreement
ESM62020 Condition B – What type of influence is relevant?
ESM62025 Condition B – Financial businesses regulated by the FCA
ESM62030 Condition B – Significance of size
ESM62035 Condition B – Hierarchy of members
ESM62040 Condition B – Delegated powers
ESM62045 Condition B – Part of a business
ESM62050 Condition B – Indirect influence
ESM62055 Condition B – LLPs that are parents of a group
ESM62060 Condition B – LLPs that are members of a group
ESM62070 Condition B – Change in circumstances