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Topical tax points for law firms

Read some topical tax points including whether you should claim Child Benefit as a high earner and whether an expenditure should be included in partnership expenses or claimed on personal tax returns?

What are the proposed tax changes for the self-employed, sole traders and partnerships?

Unincorporated businesses could see significant changes to the way they are taxed following the launch of a consultation by the Government – which could lead to some facing higher tax bills than expected.

Adjusting the numbers – the future of finance in law firms

I was recently honoured to be asked to write part of a new book by Globe Law and Business on the future of finance in law firms.

Details of the book can be found at:

https://www.globelawandbusiness.com/books/adjusting-the-numbers-the-future-of-finance-in-law-firms

Fixed Capital Accounts with Variable (but distributed) Current Accounts

We are finding there are a growing number of law firms approaching us that are looking to include a fixed capital amount in their shareholder or partnership agreements.

The trend towards performance related profit share

Traditionally, law firms have rewarded partners using either equal profit share or lock-step to equal profit share.  This approach has felt pressure in recent times, with more firms looking to incentivise and reward behaviours and performance, and also to attract and retain the best people.

An increasing number of firms are looking to implement at least an element of performance related profit share.  Some have done it and it has worked well for them, others have done it and have found it incredibly difficult and divisive. 

Choppy waters ahead for the legal sector?

Following surprisingly good results with improved profits and improved cash flows, Law Firms may face choppier waters ahead as Government financial support is withdrawn over the coming months.

Legal Sector Benchmarking Report -  A trend for firms to have a smaller number of equity partners?

The latest Armstrong Watson Legal Sector Benchmarking report is available to download from our website now and includes our analysis and comparison of the years ending 2019 and 2020.

Recharging Expenses subject to VAT

Stephen Ferrie, VAT Consultant discusses the conditions around recharging your expenses, subject to VAT,

Role and responsibilities of law firm COFAs

Following the introduction of the SRA’s new Standards and Regulations on 25 November 2019, the role of law firm compliance officers has never been more important.  Andy Poole looks at the role and responsibilities of Compliance Officers for Finance and Administration (COFAs).

Negative interest rates?

Legal Sector partner, Andy Poole explains what the implications will be, for law firms, if interest rates become negative, particularly in relation to the client money held.