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Dividend, National Insurance and Corporation Tax increases – time to act?

The introduction of increased rates of National Insurance Contributions, dividends and Corporation Tax over the next couple of years may give cause for owners and directors of businesses to consider their remuneration package and whether this is still appropriate.

Tax reform for unincorporated businesses delayed

Businesses facing an increase in their tax bills next year can breathe a sigh of relief now that the Government has pushed back its plan to alter the basis period for one year.

2022: Could it be a year of drama for the legal sector?

As we come to the end of 2021, which for many of us has felt like one long slog since the first lockdown of 2020, here I provide a quick state of the market review and look forward to what 2022 might bring.

Benefits of Electric Cars

Introducing electric cars into a business or organisation is no longer just about social responsibility.  There are a number of benefits to driving an electric car, including some serious financial incentives such as electric car benefit in kind.  There are also other considerations you need to make too.  The main points to consider are listed below.

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.