Law Society president Simon Davis (pictured) said: ‘There are widespread concerns over
liquidity as firms face a dramatic plunge in income with work falling away.
‘Residential property transactions have ground to a halt. Reduction in court
hearings has massively impacted on the amount of work available―while social
distancing and the lack of face-to-face meetings is causing difficulty
delivering in other areas, such as the execution of wills.
‘Elsewhere, small firms have suffered from the decline in overall
activity―particularly from service industries such as retail, leisure and
hospitality. The fate of the high-street firm is thus intrinsically bound to
that of other small businesses.’
Davis said that, while the government support will provide some relief, many
businesses will fall through the cracks. Firms are expected to continue to pay
business rates even though their office may be standing empty, for example, and
solicitors who have earned more than £50,000 profit in the preceding year is
excluded from the rescue package for the self-employed.
‘Crucially, there must be also be support package in place for those legal
practitioners who are paid via dividends,’ Davis said.
‘Under the current schemes such people will only be able to receive a
minimal amount of support, possibly no more than £575 per month. This could be
solved by extending support to sole practitioners operating via a professional
service company.’
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