Recently Danny Alexander announces tough new guidelines for LLPs

The treasury secretary is all set to secure hold on tax arrangements that is used by partnerships. Presently the junior employees are classified as partner when tax purpose comes under concern though in reality they have no hold on decision making power, capital risk or equity. The government is all set to change these policies.

This proposal will also tackle manipulation of profit and loss statements where profits are allocated to some partners and losses to others.
Danny Alexander spoke of their plan to close all the loopholes that permits private equity shareholders to draw off money out of organisation while dodging income tax return. He also said of the plan to close the gaps that allow partners to structure staff arrangement in an attempt to avoid payment of appropriate income tax.

Around £300m can be raised as a result of this proposal, claim government officials. However, there are many who feel that this do not justify the move. Advisers remain unconvinced of the idea and there are many who feel that the move has the capacity to cause more harm than good.