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27-03-2014

Legal Business reports that City law firms are continuing cash calls on fixed-share partners (FSPs), to avoid the overhauls to the LLP tax system. According to the new rules, a cash investment of just over 25% of salary, the minimum stipulated by HMRC, is required in order to be considered a partner as opposed to an employee.

The new rules 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.

The overhaul, which was confirmed in Chancellor George Osborne's budget as going ahead as planned next month despite protests from the industry, has seen firms reviewing their partner remuneration arrangements.

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Standout firm known for its personal insolvency work for clients including private companies, individuals and governmental institutions. Frequently acts for insolvency practitioners, assisting with the realisation of assets, both in the UK and abroad.

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