Hogan Lovells has increased its pay for both trainees and newly-qualified (NQ) lawyers for the second year running after a freeze on trainee pay in 2012.
Continue reading “Salary reviews: Hogan Lovells raises trainee and NQ pay again”
Associate pay – Ashurst ups salaries for trainees and NQs
Ashurst has upped its salaries for London-based trainees and newly-qualified lawyers (NQs) after a two-year freeze on pay.
First-year and second-year trainees will take home £1,000 more, up from £38,000 and £43,000 respectively, from levels set in 2012. Continue reading “Associate pay – Ashurst ups salaries for trainees and NQs”
Updated: A&O freezes NQ and trainee pay as it ups associate salaries; Linklaters announces increases across board
Allen & Overy (A&O) revealed today (8 May) that it will hold trainee and newly-qualified (NQ) lawyers’ pay at 2013 levels, while Linklaters has unveiled pay increases for all associates and trainees.
Slaughters first to up pay for trainees and NQs
Slaughter and May has again become the first major City player to announce changes to its junior fee-earners’ pay levels, with a marginal rise in salary for first year trainees and increases for newly-qualified lawyers (NQs) of up to 3%. Continue reading “Slaughters first to up pay for trainees and NQs”
Capital call on salaried partners at Weightmans and Addleshaws in response to impending LLP tax overhaul
The tally of City firms calling on salaried partners to increase their capital investment in response to new HM Revenue & Customs (HMRC) rules is growing as Weightmans and Addleshaw Goddard this week confirmed they are in the process of significantly raising contribution levels. Continue reading “Capital call on salaried partners at Weightmans and Addleshaws in response to impending LLP tax overhaul”
LB100 firms review partnership model as HMRC’s LLP changes loom
The impact of HM Revenue & Customs’ decision to overhaul the way salaried partners are taxed is being felt across the City as a number of leading firms confirm they are reviewing their arrangements, although some of the largest Legal Business 100 firms have come out to categorically deny the changes will have any effect at all. Continue reading “LB100 firms review partnership model as HMRC’s LLP changes loom”
LB100 firms review partnership model as HMRC’s LLP changes loom
The impact of HM Revenue & Customs’ decision to overhaul the way salaried partners are taxed is being felt across the City as a number of leading firms confirm they are reviewing their arrangements, although some of the largest Legal Business 100 firms have come out to categorically deny the changes will have any effect at all.
Firms including Herbert Smith Freehills, Ashurst, TLT, DWF, Weightmans, and Trowers & Hamlins have all confirmed to Legal Business that they are reviewing their partner remuneration arrangements in anticipation of the new rules, which will mean partners with under 25% of their salary attached to profits will be regarded as having a ‘disguised salary’ and treated as employees by tax authorities in a move expected to add thousands of pounds onto firms’ tax bills.
Continue reading “LB100 firms review partnership model as HMRC’s LLP changes loom”
LLP latest: Shoosmiths, Morgan Cole and MMS see significant drop in highest paid partner as Charles Russell’s takes home 64% more
The latest round of LLP accounts for 2012/13 has revealed that Shoosmiths paid £1.5m to acquire Scottish firm Archibald Campbell & Harley, while Morgan Cole’s highest paid partner took home £116,000 less, Maclay Murray & Spens reduced their borrowing despite a tough year and Charles Russell’s highest paid equity partner took home £234,000 more.
On merging with Archibald Campbell in October 2012, Shoosmiths acquired £1.77m of net assets, £1.47m of which was paid as a cash consideration, the UK top 45 firm’s first-ever LLP accounts show. The remaining £300,000 was collected by the end of the financial year. Continue reading “LLP latest: Shoosmiths, Morgan Cole and MMS see significant drop in highest paid partner as Charles Russell’s takes home 64% more”
US bonus season: Boies Schiller, Cahill Gordon and Sidley among leading US firms to unveil numbers
Since New York elite firm Cravath, Swaine & Moore kicked off the US bonus season at the start of December with its decision to hold bonus rates at 2012 levels, firms including Boies, Schiller & Flexner, Cahill Gordon & Reindel, Sidley Austin, as well as Kaye Scholer, Schulte Roth & Zabel and Ropes & Gray have unveiled how they measure up to the traditional market benchmarker.
Where Cravath’s associates are paid from $10,000 (the class of 2013) up to $60,000 (the class of 2005), Boies, Schiller is unusual in awarding significantly more, with the best-rewarded associates receiving $300,000 compared with a maximum bonus of $250,000 paid in 2012. The average young lawyer at the litigation-driven firm will take home a bonus of $85,000. Continue reading “US bonus season: Boies Schiller, Cahill Gordon and Sidley among leading US firms to unveil numbers”
LLPs face hike in tax bills as legislative changes target salaried partners
Limited liability partnerships (LLPs) are facing significantly increased tax bills after HM Revenue & Customs (HMRC) issued draft legislation this week confirming that salaried partners with little or no share in the equity will be classed as employees for tax purposes.
The draft Finance Bill, which will come into effect in April next year, says that partners with less than 20% of their remuneration linked to the profits of the firm will be regarded as having a ‘disguised salary’ and subject to both income tax and national insurance.
Continue reading “LLPs face hike in tax bills as legislative changes target salaried partners”