Would you take a hit for your firm?

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If your firm came to you asking for money to keep it afloat, would you be happy to cough up? 

This is precisely what happened to partners at the international firm Eversheds when they were asked to contribute capital following changes to the taxation of limited liability partnership structures.

The firm asked its 164 fixed-share partners to contribute 25% of their profit share, the British Law Society gazette has reported. 

The move followed a crackdown by HM Revenue & Customs to clarify the definition of LLP membership.

The changes, which came into force last week, will mean some LLP members previously treated as self-employed will now be taxed as employees.

Last week international firm Hogan Lovells said 65 of its non-equity members would contribute capital of £60,000-£100,000 each in response to the changes.

The firm is asking partners to contribute the capital by July.

 

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