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.
The ATT had previously expressed concern that the legislation was overly complex and created unnecessary complications within the practical working of the new allowances
Richard Oddy, Casper Kaars Sijpesteijn and Rory Goldthorpe have been appointed to senior roles in key sectors of high growth, with a further 17 junior and experienced hires
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Adrian Hyde, a partner at CVR Global, has been appointed as the new president for a year-long term, effective 21 April this year