The Lawyer Asia Pacific 150 is the only research report to provide a ranking of the top 100 independent local firms and top 50 global firms in the region. The report offers critical review of some of the fastest growing firms and their strategies, a country-by-country guide to leading legal advisers and legal services market trends, plus exclusive insight into the current business development opportunities in the Asia Pacific. Read more
This year, The Lawyer’s annual ranking of the largest UK law firms by turnover is available as an interactive, digital benchmarking tool. For the first time this will allow you to manipulate each data set against the metrics of your choice.
Kennedys has called on its fixed-share partners (FSPs) to top up their capital contributions to 30 per cent of their salaries in response to HM Revenue & Customs’ (HMRC) changes to partnership taxation.
Kennedys was one of the first of the top 100 firms to launch a consultation with its partners in response to HM Revenue & Customs’ (HMRC) proposed changes to the partnership tax regime earlier this year.
Although Kennedys’ FSPs already had some cash invested it was not enough to satisfy HMRC’s minimum of 25 per cent to fail condition C of the employee status test.
The firm entered a consultation with its partners in January, after which it used its existing banking facility to issue the top-up cash call, which affected 60 or so B, or fixed-share, equity partners (13 January 2014).
The new rules sought to clarify the definition of LLP membership by determining whether fixed-share or salaried partners should be classified as employees for tax purposes. The taxman also aimed to clamp down on the tax benefits of the so-called ’disguised salary’ (17 December 2013).
DWF and Weightmans became the first to confirm that they were consulting with their partners over the new rules in early January (7 January 2014).
HMRC’s tests of employee status for current partners include the level of their variable profit share; their influence on management decisions; and the amount of capital they invest.
Failing the latter test, condition C, could show that these partners are not employees, freeing firms from the obligation to pay employers’ national insurance contributions (NIC).
The consultations were followed by a raft of cash calls at firms that opted to fail condition C by asking their fixed-share members to contribute more capital.
Hogan Lovells called on its non-equity partners to inject between £60,000 and £100,000 in April (3 April 2014) and Eversheds issued a 25 per cent cash call to its 164 fixed-share (9 April 2014).
By mid-February it had become clear that this was the most popular response to the changes as the UK’s leading banks were revealed to be struggling to cope with the demand for new loans from FSPs in the run-up to tax law changes on 6 April (18 February 2014).