Publication Date:05/05/2010
2009 was an incredibly challenging year for most law firms. After years of announcing record profits, many firms had to deal with serious financial management issues in 2009. Things are improving in 2010 but the optimistic view is cautious at best. Pressure on fees remains as high as last year and, in this brave new world that we find ourselves in, law firms have been forced to be more flexible on fee structures and imaginative on how to keep costs down.
Publication Date:04/05/2010
In the run up to the Budget, the rumour mill was awash with talk about a possible huge increase in the rate of capital gains tax and the possible demise of entrepreneur’s relief. But on Budget day, the Chancellor instead confirmed that the CGT basic tax rate would remain at 18% for the foreseeable future, which is likely to be after the general election. However, the lifetime limit on entrepreneur’s relief increased from £1,000,000 to £2,000,000 with effect from 6 April 2010.
Publication Date:28/04/2010
October 2011 is the target date for the full implementation of the Legal Services Act 2007. Part of the wide sweeping possibilities of a brave new legal world began with the introduction of Legal Disciplinary Practices last year allowing ownership of up to 25% of a law firm by non-solicitors. The initial take-up of LDPs has been limited, which is not surprising as the recession forced firms to focus on other issues.
Publication Date:28/04/2010
No matter how “green the shoots” of the recovery, it appears that partner and team moves have picked up in recent months, particularly in the legal sector. One can reasonably expect more moves to follow as a level of confidence returns to the market and disgruntled partners seek new homes.
Publication Date:28/04/2010
With many firms making partner promotions in April and May and dealing with the attendant housekeeping, it is worth remembering that limited liability partnerships now need to maintain two new registers: a register of members and a register of members’ residential addresses.
Publication Date:05/01/2010
The Provision of Services Regulations 2009 came into force on 28 December 2009, implementing the European Framework Services Directive in the UK. The regulations, which may appear to be more red tape for professional advisers, apply to providers of certain business services including lawyers, accountants, actuaries, management consultants, estate agents and construction services such as architects.
Publication Date:05/01/2010
In these difficult economic times firms have taken various steps to reduce costs, either to survive or to maintain levels of profitability. When looking at employee costs, and short of making redundancies, firms have proposed salary freezes and salary cuts coupled with reduced working hours, while for partners –often a small but expensive category–de-equitisation has been mentioned frequently in the press.
Publication Date:05/01/2010
The legal press has been full of articles recently in relation to legal market consolidation, particularly in mid-market firms. In recent months we have seen the merger of Lovells and Hogan & Hartson and stories of a tie-up between Clyde & Co and Shadbolt & Co. This merger activity is not exclusive to the legal sector, other professional sectors are experiencing it too. For instance, accountancy firms Tenon Group and RSM Bentley Jennison announced their merger just before Christmas.
Publication Date:14/10/2009
Limited liability partnerships will now need to maintain two new registers: a register of members and a register of members’ residential addresses
Publication Date:10/09/2009
A recent case has considered whether a member of an LLP can also be an employee of the LLP. The EAT has confirmed that it is possible for a member of an LLP to be an employee