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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