Calculator · UK 2025/26
LLP Profit Share Allocation
Allocate annual profit across senior, junior, and fixed-share partners under different methodologies.
Your inputs
Allocation
Senior partner 1£184,615 (23.1%)
Senior partner 2£184,615 (23.1%)
Senior partner 3£184,615 (23.1%)
Junior partner 1£123,077 (15.4%)
Junior partner 2£123,077 (15.4%)
Notes: Indicative LLP profit allocation. Real-world allocations are governed by the LLP agreement and often include adjustments for: capital interest (typically 2-5% on capital account balance), prior partner-specific drawings, lock-in / vesting schedules for new equity partners, and bonus pools that distribute outside the standard methodology.
Each partner is then taxed personally on their allocated share at personal income tax + Class 4 NI rates. Fixed-share members should be audited against the FA 2014 Salaried Member Rules; failing all three conditions triggers PAYE on drawings.
Frequently asked
- How is profit allocated in a UK LLP?
- Governed by the LLP agreement. Common methodologies: equal share, points-based (senior partners on a higher multiplier), two-tier (senior + junior), or fixed-share + equity (fixed-share members get a flat amount; equity partners share the residual). Each method has its own administrative complexity.
- Is profit allocation tax-relevant?
- Yes. Each member is taxed personally on their allocated share at personal income tax + Class 4 NI rates. The allocation methodology drives each member's tax liability. The LLP files SA800; each member files personal SA showing their share.
- Can profit be allocated unequally to manage tax?
- Yes — within the bounds of the LLP agreement and commercial reality. HMRC may challenge allocations that don't reflect the genuine commercial arrangement (e.g., allocating a large share to a low-earning spouse who isn't actively contributing). Allocations should be defensible commercially.