Finance
Smaller law firms “face battle to keep junior partners” as HMRC deadline looms
Smaller law firms are struggling to retain their junior partners in advance of tough new capital requirements set out by HM Revenue & Customs in its crackdown on fixed-share partners avoiding PAYE tax, an executive search firm has claimed.
Law Society spending to rise but cost of practising to fall significantly
The Law Society is set to reduce the cost of practising by around 20%, even though its budget is going up in 2014/15. The net funding requirement for the next financial year is £116.7m, a 3.7% increase on this year’s budget.
Medium-sized firms lead way on fee income, profits and PEP
Law firms with 11 to 25 partners are leading the way out of recession, with rising fee incomes, net profits and a 21% surge in profit per equity partner (PEP), research has found.
End of the annual accountant’s report is nigh
The Solicitors Regulation Authority has unveiled plans to remove the requirement that firms have their client accounts reviewed by an independent accountant and submit an annual accountant’s report.
Top PI firm makes profitability calculator public to show “shocking” reality of post-LASPO world
A leading personal injury law firm has gone public with a unique profitability calculator to make other practices realise how radically the economics of work have changed in the post-LASPO era, Legal Futures can reveal.
Groundbreaking ABS embraces employee ownership and new approach to charging
A pioneering alternative business structure (ABS) has become one of the first legal practices to introduce employee ownership, while also developing a new form of billing that will see it agree a profit margin with clients, Legal Futures can reveal.
SRA bids to lighten burden on firms of residual client money and on non-practising solicitors
Solicitors will be able to close down thousands of client accounts with residual balances of up to £500 and donate the money to charity under plans unveiled yesterday by the Solicitors Regulation Authority. The regulator is also planning to end the annual ‘keeping of the roll’ exercise.
Top firms turn backs on stock market listing and private equity cash
The UK’s top law firms have become increasingly sceptical about listing on the stock market or taking on private equity investment, according to new research.
Banks agree £60m funding facility to fuel “substantial” growth at Irwin Mitchell
Irwin Mitchell has signalled its intention to grow “substantially” in the coming years after securing a £60m four-year finance package with three major UK banks. The deal also includes a £30m ‘accordion’ facility for further finance if required for a big transaction.
Natwest survey: confidence and profits rise but firms must "spend more to make more"
Profits were up last year and confidence is buoyant for the coming year among small and medium-sized law firms, according to a major benchmarking survey. Nine out of 10 firms surveyed thought profits would increase during 2014.
Blog
When AI becomes a line on the client’s bill
On 23 June, Legora changed how it charges. The platform announced that its most capable product was moving away from a flat per-seat licence fee to consumption-based pricing
Which legal AI will still matter in 12 months?
Four years ago, when senior partners asked me which legal AI they should buy, I would have walked them through a vendor comparison. Now I tell them the question is wrong.
Supreme Court redraws line between member and employee in LLPs
For anyone advising professional services firms on LLP structuring, and of course for those in LLPs themselves, last week’s Supreme Court ruling is an essential read.
