Reeves considering tax hike for lawyers and accountants
Baku, October 23, AZERTAC
NHS GPs are not allowed to operate as an LLP under the terms of their contract.
According to BBC, changes to the taxation of LLPs could affect locum doctors and those working in private practice.
A spokesperson for the British Medical Association, the trade union for doctors in the UK, said extending National Insurance to LLPs would be highly likely to erode "the financial viability of many small, doctor-led practices".
Stuart Adam, a senior economist at the Institute for Fiscal Studies, told the BBC there was uncertainty over how much such a measure could raise as he would expect some people to restructure their tax affairs in response.
He said taxing this group of people more heavily would also be "a disincentive to work" and "in some extreme cases, you might see some people leaving the country or not coming to the UK in the first place".
Some analysts have estimated Reeves will have to raise taxes or cut spending by around £20bn to meet her "non-negotiable" financial rules.
These rules mean her plans must be projected to get government debt falling as a share of national income by 2029-30, and day-to-day government costs must be paid for by tax income rather than borrowing.
In its general election manifesto last year, Labour promised not to increase income tax, VAT and corporation tax, limiting the government's options to raise revenue.
The party also promised not to raise National Insurance - prompting a row last autumn when it announced a hike in the contributions paid by employers.
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