Finance
Sole practitioners ‘more profitable than small firms’
Sole practitioners have overtaken small firms with two to four partners in terms of profit per equity partner, a survey has found. Sole practitioners also led the way in fee income growth compared to larger firms.
Mid-sized law firms recording solid growth, major survey finds
Last year saw solid real-terms growth for mid-sized law firms, with median growth of 4.2% the result of increased fee income rather than simply more fee-earners, new figures have shown.
Law firm insolvencies hit new high amid ‘loan stacking’ warning
The number of insolvencies among solicitors’ firms reached a new high last year, Insolvency Service figures have shown, and a funder has warned that ‘loan stacking’ will only make things worse.
VAT risk for law firms handling insurers’ claims work
New guidance on delegated authority claims handling by lawyers may create additional VAT costs for law firms and lead to disputes with their insurance clients, accountants have warned.
Tribunal issues tax warning after senior barrister’s late payment
Barristers would be “well advised” to make proper provision for tax liabilities given the “episodic” nature of their income, a tribunal has cautioned after upholding a fine against a QC hit by legal aid cuts.
Divorce is not a “blank cheque” for litigation, judge warns
Litigation is not a “blank cheque” and divorcing people cannot behave on the basis that they are bound to be reimbursed for their costs, a leading family law judge has warned.
High Court orders partner to sell his share of law firm
The High Court has ruled that a partner in a law firm who paid himself £16,500 after he had left the firm and was “effectively competing with it” breached his director’s duties.
Biggest client’s “IT disaster” tipped firm into administration
A “disastrous IT failure” suffered by a law firm’s biggest client tipped it over the edge into administration and a pre-pack sale to fast-growing national firm Taylor Rose TTKW.
Partner fails to strike out bank’s claim under guarantee
A former partner of a London firm that went into liquidation has lost his bid to strike out Barclays Bank’s claim to enforce a guarantee he provided to cover a loan and overdraft.
Bank backing for listed firm’s acquisition ambitions
Knights Group – the Staffordshire-based law firm that listed in June – has secured bank funding to support its strategy to complete at least three acquisitions by April 2020.
Blog
Why good governance matters when managing Law Society forms
Everyday legal transactions rely on Law Society forms. But they are often treated as static templates rather than what they really are: living documents that change over time.
A letter from the SRA? Your first reaction matters
An email from the SRA has a way of rearranging a working day. It arrives in the same inbox as everything else, often in the same measured tone, yet it carries a different weight.
Regulate sole practices on evidence, not turnover
For a sole practice, the SRA’s plan that I cannot hold a compliance role if my firm has more than £600,000 of turnover is not a measure of risk. It is a ceiling on growth.
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