Core Insights - UK Chancellor Rachel Reeves is considering tax reforms that may increase national insurance contributions for certain professionals, potentially affecting around 200,000 individuals and generating approximately £1.9 billion annually [1][3]. Group 1: Tax Reform Implications - The proposed changes aim to incorporate national insurance into the tax obligations for accountants, lawyers, and doctors, which could significantly alter their tax liabilities [1][3]. - The introduction of a new levy on limited liability partnerships (LLPs) is intended to address a substantial deficit in the UK's public finances [3]. Group 2: Impact on LLP Structures - Many large law and accountancy firms operate as LLPs to benefit from favorable tax treatment and avoid paying employers' National Insurance contributions [2]. - If the exemption for national insurance contributions is eliminated, the marginal tax rate for partners in these firms could rise from approximately 47% to 54% [4]. Group 3: Industry Reactions - The proposed tax changes have been described as "frustrating and costly" by industry leaders, with some firms considering abandoning their LLP structures in favor of incorporating as companies [4].