LAW FIRMS are considering going cap in hand to partners in a bid to deal with new partnership tax rules.
Like accounting practices, law firms are facing up to potential changes to their corporate structure in the wake of new partnership rules that look to hit tax avoidance.
Jennie Gubbin, senior partner of Trowers, told The Lawyer that the firm was talking to its participating partners (salaried members) about the tax changes, with a cash call being considered.
A set of tests of employee status have been put forward by HMRC, which include the level of capital they invest and their influence on management decisions. The taxman is looking to introduce the tests to stamp out tax avoidance where partners are in fact disguised employees.
Advisers have warned that the breadth of the tests could inadvertently ‘catch’ firms beyond the original scope of HMRC’s gaze.
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Manufacturer DMG Steelworkers has been sold out of administration in a pre-pack deal by insolvency and restructuring firm CVR Global
Three tax advisers have been arrested as part of a HMRC investigation into a suspected £132m tax fraud.
Lee De’ath and Richard Toone, partners at CVR Global, were appointed joint-administrators of Lexden Centre (Oxford) Limited, trading as Colchester English Study Centre (CESC), on 29 June 2016