Key facts
- UK government may extend employer national insurance contributions to LLPs.
- Chancellor Rachel Reeves refused to rule out the potential tax rises.
- The Law Society warns of market distortion and firms moving overseas.
- Legal aid firms operating on tight margins could be heavily impacted.
The Law Society of England and Wales is concerned that the UK government may extend employer national insurance contributions to limited liability partnerships (LLPs) ahead of the autumn budget on November 26. Chancellor Rachel Reeves has refused to rule out such tax rises. The society warns that these potential hikes could harm the UK's globally competitive legal sector, undermine economic growth, and disadvantage UK firms compared to US counterparts. Legal aid firms, many structured as LLPs, could also face significant financial pressure.