Stressed by tax?
Get Earnr Pro

LP10 Letter

[ɛl-piː10 ˈlɛtə]



An LP10 Letter is an instruction by HMRC that allows a company to pay a short-term worker with no tax deductions. They are also known as a Lorimer Letter.

More detail:

An LP10 Letter, also known as a Lorimer Letter, is a note sent by HMRC that instructs the hiring company to pay the short-term worker with no Income Tax or National Insurance contributions deducted. LP10 Letters allow freelancers who work 10 days or less to be paid like Sole Traders rather than be paid PAYE.

To apply for one, you must fill in a PSC questionnaire and engagement history form. You must be able to show HMRC 12 months of employment history containing lots of examples of short-term jobs. HMRC would normally also require proof of a business structure used where there is some financial risk or provision of substantial equipment.

They are valid for 3 years.

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr