Hill Dickinson mulls second cash call in 12 months post HMRC tax change

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  • The problem is that they are employees and HD are just avoiding NIC. Impressive that HD comes up with a plan where in return for not having to pay their employee's NIC the employee gets to pay HD 30% of their pay.

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  • Its not 30 percent of their continuing pay. Its a one off although would rise in theory with profits and it will ultimately be returnable as it is a capital injection crediting the partners accounts.

    Also most firms are doing this, its not just HD.

    The more interesting question is whether any firms are converting to corporate status i.e. dropping the LLP completely and becoming a 'Limited' company in light of these changes.

    Have not seen any reports of other firms doing that

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  • An innocuous move that most firms will make.

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  • Unless things have changed significantly since I was there, there was always a real division between those with the real equity and those with no or little equity (for which read salaried and fixed share) both in terms of remuneration and the ability to have any control over where the business, or even your bit of it, was going. Funnily enough Hill Dicks recognised this itself at the time and left salaried partners salaried rather than taking the NI benefit. I don't know why it changed its position, but I would be surprised if it was because of a more open culture. Would I have handed over 30% of what I was being paid for 1 point? I really don't think so. And that was before the recent cash calls and the recently announced drop in partner profits. And I'm not sure anyone nowadays should be investing capital and blindly assuming that you'll get it back.

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  • So what's that, a minimum of £25,000 or £30,000 from each salaried partner or even more? Cheap money to help Hill Dicks cash flow.

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  • @Anon 19 Feb 5:55, I doubt the culture's any more open than when you were there.

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  • I'm sure the salaried partners were extensively consulted and then told like it or lump it.

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  • Either people are using this as an excuse to kick HD or I am missing something. I am pretty sure DWF, Weightmans and TLT are looking in to doing the same. From what I understand this will the norm amongst most LLPs.

    Could someone explain why HD doing this is so odorous?

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  • Gosh, lots of whining comments.

    If you want to be called a Partner be one and put your money in and share in the highs and lows of the firm. If not there are plenty of Associate jobs around.

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  • @anon 6:46 20 Feb you're missing my point. This is about putting in more than a token sum but getting nothing in return. Hill Dicks on the other hand get a substantial cash injection (I suspect there will be lots of salaried partners) and don't have a big NI bill either. 1 point won't get you any highs and you'll be the first out when the lows hit.

    I can't speak for the cultures at the other firms mentioned in the comments, but I know the Hill Dicks one all too well.

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