Legal Practice Notes

This Practice Note explains how to interpret and make sense of a law firm’s financial accounts... Why are financial accounts important? Firms must monitor and assess their accounts to gauge performance and determine what actions are needed to improve results... What is available in a set of year-end accounts will depend upon the: legal structure or constitution of the firm rules that dictate the form and content of the accounts In addition to year-end accounts, you may choose to produce monthly or quarterly management accounts, which should be reviewed regularly. For further information on management accounts, see Practice Note: The importance of good management information... What financial statements make up a set of financial accounts? Every firm needs to prepare annual financial statements that together comprise the firm’s financial accounts. There are six statements potentially required: profit and loss account balance sheet cash flow...

Capturing a neat, universally agreed meaning of leadership is near impossible. We’ve all witnessed strong and weak leadership, yet when we try to nail what truly distinguishes an effective leader, we tend to produce a catalogue of behaviours rather than a tidy definition. In this Practice Note, we dig beneath the surface of leadership, examine how it contrasts with management, and highlight the core behaviours shown by outstanding leaders. The difference between management and leadership More effort has likely gone into drawing the line between a leader and a manager than almost any other management subject. Too often, such descriptions elevate the leader while diminishing the manager, which is unhelpful, as organisations need capable people in both disciplines to stay successful. A helpful analogy is this: the manager is at the wheel, aiming to travel from A to B; the leader sits beside them with the map,...

This Practice Note concentrates on the range of tax reliefs (income tax relief, national insurance contribution relief and corporate tax relief) available for member and employer payments into registered pension schemes. It further outlines how a member may obtain income tax relief for their own contributions, and explains the tax position of employer contributions paid on termination of the member’s employment. For broader guidance on pension taxation, see Practice Note: Tax treatment of pensions—an introduction. Member contributions to registered pension schemes Section 188 income tax relief A key benefit of registered pension schemes is the availability of income tax relief for members on contributions they, or a third party on their behalf, pay into the scheme. That relief, set out in section 188 of the Finance Act 2004 ( FA 2004), has the following features: conditions......

Broadly speaking, tax applies to UK registered pension schemes in three different areas: the tax treatment of member and employer contributions, including any repayment of member contributions the tax treatment of assets held by the scheme, including the investment returns generated by those assets the tax treatment of benefits paid out by the scheme Where an individual participates in more than one registered scheme, the contributions paid to—and the benefits received from—each arrangement are combined and considered together when establishing that person’s overall tax liability. This Practice Note concerns registered private sector pension schemes. Public sector pension schemes are predominantly governed by separate legislation. Their tax position is broadly similar, though not invariably the same, as that which applies to registered private pension schemes......

This guide is intended mainly for trainees, newly qualified lawyers and anyone else who is new to, or not familiar with, pensions law. A- Day The registered pension scheme framework began on A- Day (6 April 2006). Under this framework, described in Part 4 of the Finance Act 2004 ( FA 2004), pension schemes of any kind are classed as either registered or unregistered. Schemes that held ‘tax approval’ before A- Day, under the then existing approval systems, were switched automatically to registered pension scheme status on A- Day, unless they chose to opt out. Since A- Day, other schemes have been able to seek registration under FA 2004, s 153, provided they meet the regime’s conditions. To benefit from the tax reliefs available under the registered pension scheme regime, it is not enough for a person merely to belong to a...

THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES. There is no overarching legislation dictating how members’ pension entitlements must be handled during temporary absences from employment, save for the following carve-outs: time away under statutory family leave, including maternity, paternity, adoption, parental or shared parental leave—for details, see Practice Note: Maternity and other statutory family leave—the pension requirements interruptions in pensionable service ignored under preservation legislation when assessing if an early leaver has two years’ qualifying service—for details, see Practice Note: Early leavers—preservation — Breaks in pensionable service Beyond these, the approach to pensions during a temporary break will be determined by the scheme’s rules and the nature of the absence. Employment contracts may also set out particular arrangements for some absences (eg sickness). Accordingly, employers establishing pension provision for staff must decide how members’ pension rights are to be treated when work is...

A limited liability partnership ( LLP) A limited liability partnership ( LLP) is a corporate body established under the Limited Liability Partnerships Act 2000 ( LLPA 2000). Most rules governing LLPs derive from modified company law rather than partnership law (see Practice Note: The nature of a limited liability partnership and its legal framework). The requirements for incorporation are prescribed in the LLPA 2000 and the Companies Act 2006 ( CA 2006), as adapted by the Limited Liability Partnerships ( Application of Companies Act 2006) Regulations 2009, SI 2009/1804 ( LLP ( Application of CA 2006) Regs 2009). The method for forming an LLP closely mirrors the procedure for company incorporation......

Ways of accruing pension benefits Employees have several pension arrangements through which they can accumulate benefits. The principal options are: occupational pension schemes personal pension schemes employer-financed retirement benefits schemes ( EFRBS) master trusts (including the National Employment Savings Trust ( NEST) since October 2012) the state pension Employees may belong to, and pay into, more than one pension arrangement at the same time, for example the employer’s occupational pension scheme together with the employee’s own personal pension scheme......

This Practice Note This Practice Note offers practical advice on direct marketing, with an emphasis on meeting the requirements of the United Kingdom General Data Protection Regulation ( UK GDPR) and the Privacy and Electronic Communications ( EC Directive) Regulations 2003 ( PECR 2003). It addresses telephone and postal marketing, email activity, and other forms of electronic mail marketing. It also clarifies when checks against the Mailing Preference Service ( MPS) or the Telephone Preference Service ( TPS) are necessary. Drawing on ICO direction, it considers service messages, refer-a-friend promotions, regulatory communications, market research (including ‘sugging’—selling under the guise of research), tracking pixels, marketing databases, suppression lists and preference centres. The core difficulty with direct marketing is working out how the UK GDPR and PECR 2003 interlock; what you may do depends on your chosen tactics and the audience you are...

ARCHIVED : This Practice Note has been archived and is not maintained. This Practice Note examines how Brexit has influenced UK cybersecurity, with particular emphasis on the network and information systems legislation. It addresses: a snapshot of UK cybersecurity regulation before the end of the implementation period the origins of Directive ( EU) 2016/1148, the Network and Information Systems Directive ( NIS Directive), and how it was implemented in the UK the broad consequences of Brexit for the UK’s application of the NIS Directive what the end of the transition period means for relevant digital service providers ( RDSPs) a summary of effects on qualified trust services under Regulation ( EU) 910/2014 (the e IDAS Regulation) the impact of the transition’s end on UK– EU cooperation on cybersecurity The prominence of cybersecurity has been underlined by recent high-profile incidents affecting companies and public services. These have involved a wide array of attack...

Term Meaning Accounting reference date On incorporation, a company is typically assigned an accounting reference date, being the final day of the month that contains the anniversary of its incorporation. Directors can alter this by submitting the relevant form to the Registrar of Companies. It denotes the end of the annual accounting period and is also called the balance sheet date. Accounts payable Sums a business or individual owes to others for goods or services already received. Accounts receivable Sums due to a business or individual from others for goods or services supplied. Accrual In company accounts, recognition of income earned or costs incurred during a reporting period, even though the cash has not yet been received or paid. Adjusted earnings Where reported earnings are affected, positively or negatively, by exceptional one-off events in the year,...

Updated in December 2025 Introduction The UK has long been a preferred destination for global companies setting up their first foothold in Europe. It sustains robust trading relationships with most nations worldwide—situated within Europe, yet well placed between US and Asian time zones. While geographically European, the UK is no longer part of the European Union, and organisations planning UK operations should recognise the growing legal and regulatory divergence from EU Member States. The UK contains three distinct jurisdictions: England and Wales, Scotland, and Northern Ireland. In many respects, the same or closely aligned laws apply across these jurisdictions. Nevertheless, there are notable distinctions, particularly regarding local government regulation, property transfers, and judicial frameworks. This guide concentrates on the jurisdiction of England and Wales. Further local guidance will be required if you intend to operate in Scotland or Northern Ireland. There are multiple options for...

Updated December 2025 Introduction The United Arab Emirates ( UAE) sits at a pivotal juncture between leading Western and Eastern markets. Formed as a constitutional union of seven Emirates, each maintains its own local authority, while overarching governance rests with the Supreme Council and the Council of Ministers. As part of the Gulf Cooperation Council ( GCC), the UAE participates in the Middle East’s sole multi-national common market, aimed at deepening cross-border economic and fiscal cohesion. Investing and trading in the UAE offers a broad spectrum of prospects for investors. This Practice Note highlights principal considerations for overseas organisations entering the UAE and the essential actions to commence operations. It concentrates on establishing in Mainland UAE, the Abu Dhabi Global Market ( ADGM), and the Dubai International Financial Centre ( DIFC). Although these jurisdictions are covered in depth, investors can also assess many...

This Practice Note is intended for law firms. It explains why capturing time is so vital. It also explores best practice around time recording and considers the impact on write-offs if more time is captured. Why do law firms need to record time? Time should be recorded primarily to understand the true cost of work undertaken, to ensure accurate and reliable client billing, and to maintain compliance with SRA client costs information requirements (see further subtopic: Information on costs). It is therefore necessary to record all time spent on a client’s matter—whether this time can be billed is a separate issue and must only be considered at the point of billing. Law firms often confuse time recording with billing. As a consequence, many lawyers discount their time twice: at the point of entry and initial capture again when preparing and issuing the client’s...

Time management is the way we arrange and tackle tasks within the time at our disposal. Shortfalls often arise from unrealistic workloads, weak assertiveness, or limited technical know-how... This Practice Note covers: time analysis how to prioritise tasks managing a tendency to procrastinate getting on top of your work/life balance saying no a guide to swifter, more focused meetings top tips for senior leaders Time analysis—where is my time going? Before resolving any time management challenge, identify what’s driving it. Possible factors include: limited assertiveness, or not saying no when new tasks land sheer workload—perhaps your role’s scope is misjudged gaps in technical skills, eg support to tame emails or use collaborative tools better a need to retain control and reluctance to delegate uncertainty about what is expected of you A helpful place to begin is by...

When stepping into any negotiation, whether it’s a multimillion-pound deal or sorting the office coffee rota, there are two primary elements to weigh: the negotiation’s structure and stages, and the human aspect, ie emotions and negotiation style. This Practice Note focuses on the latter. See Practice Note: The structure of a negotiation for guidance on the former. The human element of negotiations When faced with a negotiation, we often experience mixed feelings, eg fear, excitement and anxiety, shaped by how past discussions have played out. A negotiation is not solely about process—a skilled negotiator also considers the other party’s style and natural tendencies, adapting their tactics in response. There is no single perfect negotiator, as different situations call for different strengths. Nonetheless, successful negotiators commonly display the following traits: Patient — They accept they may not secure everything in one sitting. Creative — They keep...

This Practice Note This Practice Note explores the legal and practical concerns for an employer during a team move, where one or more employees entice or headhunt fellow employees of the current employer to join a new employer or to start a business on their own account. The move may have been coordinated by the incoming employer. Such team moves have generated numerous employee competition cases, and the law has evolved in response to this trend. From the earlier position that the general law did not prevent employees, acting in concert, from leaving to compete (see Searle v Celltech), team moves are now laden with legal challenges for the existing employer, the departing staff and their prospective employer. This Practice Note concentrates on the issues affecting the current employer in a team move setting. For discussion of the various legal and practical...

In a crowded professional services market, firms are distinguished by the calibre of the people they hire. Sourcing and selecting the right person is only half the task; once they join, you must develop and retain them to secure an advantage in an increasingly competitive and fickle landscape. This Practice Note covers: what is talent management the business case for talent management what hinders a talent management strategy talent management model developing a talent management strategy What is talent management? Talent management has become increasingly prevalent in recent years. More than another slice of management jargon, when executed well it helps firms build a culture devoted to creating, supporting and developing a workforce of top performers—an ambition many pursue but few truly realise. Talent management involves: identifying the talent the organisation needs, now and in the future ...

Updated in October 2025 Introduction Since the mid-twentieth century, Taiwan has stood among the ‘ Asian Tigers’, sustaining a vibrant capitalist economy with a strong global footprint. The World Trade Statistical Review 2025 records Taiwan as the 16th largest exporter in world merchandise trade for 2024, while the IMD World Competitiveness Yearbook 2025 ranks it 6th worldwide. The government also provides a range of attractive incentives that enhance Taiwan’s business-friendly appeal. Supported by political stability and a dependable domestic market, deep expertise in both hardware and software engineering, a rich pool of high-calibre talent, mature infrastructure, and favourable investment legislation, Taiwan offers a compelling setting for enterprise. Positioned at the heart of the Asia Pacific, it serves as a strategic bridge to major economies including the US, China, Japan and Korea, along with emerging markets such as the ASEAN Economic Community ( AEC). In June 2010, the...

This Practice Note offers clear direction on the principal actions an in-house legal function should take when establishing a panel of preferred external legal services providers. It proceeds on the basis that a thoughtful choice has been made to outsource part or all of the legal work within an organisation. It further assumes the organisation is a private sector organisation incorporated in England and Wales and is also not subject to public sector procurement rules. This Practice Note outlines a coherent sequence to lead you through the legal outsourcing journey, and is supported by a range of Precedents and tools. Step 1: Assemble a procurement project team Begin by forming a legal services procurement team to direct and oversee the project. Ideally, keep this group small (no more than six people) so it does not become unwieldy. The engagement and backing of business...