Tax breaks enjoyed by members of limited liability partnerships will be closed in next month’s budget, according to press reports today. According to The Times, chancellor Rachel Reeves will impose a new charge on people who use limited liability partnerships as she tries to fill a £30 billion hole in the public finances.

Partnerships currently offer significant tax benefits over ordinary employment. LLP partners are treated as self-employed so they are not subject to employer national insurance contributions. They also pay a lower rate of employee national insurance. According to the Centre for the Analysis of Taxation (CenTax), solicitors receive a fifth of all partnership income, averaging more than £300,000 a year each.