Market intelligence for law firms of the future
Finance
Fixed fees play major role in client satisfaction, survey finds
The use of fixed fees in family, probate and housing cases has risen significantly, leading to far higher rates of client satisfaction than when they pay by the hour, according to a major consumer survey.
SRA: we expect more large law firms to go under
More large law firms are expected to fail over next few years and the risk of theft of client funds is rising, the Solicitors Regulation Authority has warned. It has also speculated that in future indemnity insurance or even policies purchased by clients may need to cover the cost of intervening in firms.
Time nearly up for hourly billing as in-house lawyers ask firms to share risk
There is a widespread desire to move away from the hourly rate model, according to a survey of in-house lawyers that found them wanting their external law firms to share risk. Senior counsel at 80 international companies believe that law firms should provide ‘budget certainty’.
Tax tribunal strikes down QC’s own avoidance scheme
HM Revenue & Customs (HMRC) has warned that having a complex tax avoidance scheme approved by a senior lawyer does not render it safe after a specialist tax QC who designed his own scheme saw it struck down.
Budget crackdown on misuse of partnership structure to avoid tax
HMRC is set to scrutinise the status of law firm partners after measures announced in the Budget. The Treasury is to consult on removing the presumption of self-employment for LLP partners and on countering the “artificial allocation of profits to partners”.
Full distribution “on the wane” as big firms look to retain profit
The full distribution remuneration model is on the way out because law firms want to stockpile funds within the business, according to a survey. It is being phased out in favour of a more ‘corporate’ approach to bolster firms’ finances.
Major study lays bare finances of SME law firms: best have 40 times the PEP of the worst
Profits per equity partner at the most successful small and medium-sized firms were more than 40 times those of the bottom-earning firms last year, a major study by NatWest has revealed. “It could be observed that the average firm was making virtually no real profit,” it also reported.
Small and mid-sized firms feel impact of ABSs but ‘real profit’ is on the up
Many small and medium-sized law practices expect alternative business structures to affect them directly, with a third saying they could merge with another firm and one in five likely to seek external funding and/or bring in non-lawyer owners, a survey has found.
Survey: firms need better hold of “levers of profitability” to make most of clients and staff
Law firms are not maximising the potential in either their clients or their staff, according to new benchmarking research seen by Legal Futures. Firms reported very different results from cross-selling, for example,
Barristers to have facility to deal with client money from next year
Barristers will soon be able to offer a full range of legal services after the Bar Council unveiled a third-party escrow account which will hold client money. All funds are to be held in a ring-fenced account with Barclays.
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Associate News
Legal Eye launch marketing workshops to add to package of law firm support
Workforce diversity – will your firm be prepared to report to the SRA?
CaseCheck’s Spring Case Law Digest eBook now available
Focus on business for Liverpool Law Society’s Personal Injury Conference
Eclipse – Proclaim integrates with Lawyer Checker
Brethertons Solicitors signs with Peppermint to support continued growth
Legal Eye launches new product for Sole Practitioners
