News Article - 29 August 2008
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Around five City law firms are seeking advice from Deloitte on HM Revenue and Customs (HMRC)'s clampdown on tax relief for costs relating to equity partner hires.

Many others are looking to accounting firms individually for advice, as more than half of the UK's top 50 law firms negotiate with HMRC, reports legalweek.com.

Recruiting is relied upon heavily by some law firms based in the capital, and the process can cost over £100,000 per partner hire because recruiters charge up to 20 per cent of a lateral's annual pay.

"HMRC’s current stance is that such fees are not deductible against tax," said a Deloitte spokesperson.

"We and most other advisers believe there is at least a case to answer to say that they could be tax deductible."

Deloitte are also involved in a row with the City of London Corporation over rate payments, reports Accountancy Age UK.

The company has issued a writ which demands £3 million from the Corporation as well as damages and interest, because of an alleged overpayment of rates.

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