Associates at City law firms who are on £100,000 will find themselves richer this year, regardless of who won yesterday's election.
Accountants Baker Tilly report in Legal Business that associates will be £440 a year better off under a Labour government and £1,597 richer under a Conservative government. Everyone's a winner so far. But there is more at stke for partners. The proposed increase in the top rate of income tax means that a partner on £1m a year would be £42,060 poorer if Labour gets in. But he or she would pay £1,500 less tax than last year under a Tory administration, so a Labour victory would cost that partner an effective £43,560 per year.
Mid-level partners at the Magic Circle firms earn rather more than this and could be looking at nearer £60,000 or £70,000 extra a year, rising to over a hundred grand for those at the top of Slaughter and May. Now that's redistribution.
Baker Tilly warn that high earners will also be clobbered by the mansion tax that Labour plans to introduce. Although partners' Porsches are probably safe for now. As Britain goes to the polls at the time of writing this, a sweep of RoF Towers predicts the Tories getting far more seats than Labour and ultimately entering into a coalition with the Lib Dems and the DUP. You heard it here first.*
*In other predictions, Farage will be trounced, UKIP likely to get only two seats, the Greens none. SNP to threaten to oppose the Queen's Speech with Labour but to be bought off by powers from Cameron. Clegg to scrape by and win his seat. Worth a fiver.
Tip Off ROF
Accountants Baker Tilly report in Legal Business that associates will be £440 a year better off under a Labour government and £1,597 richer under a Conservative government. Everyone's a winner so far. But there is more at stke for partners. The proposed increase in the top rate of income tax means that a partner on £1m a year would be £42,060 poorer if Labour gets in. But he or she would pay £1,500 less tax than last year under a Tory administration, so a Labour victory would cost that partner an effective £43,560 per year.
Mid-level partners at the Magic Circle firms earn rather more than this and could be looking at nearer £60,000 or £70,000 extra a year, rising to over a hundred grand for those at the top of Slaughter and May. Now that's redistribution.
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A City partner next week |
Baker Tilly warn that high earners will also be clobbered by the mansion tax that Labour plans to introduce. Although partners' Porsches are probably safe for now. As Britain goes to the polls at the time of writing this, a sweep of RoF Towers predicts the Tories getting far more seats than Labour and ultimately entering into a coalition with the Lib Dems and the DUP. You heard it here first.*
*In other predictions, Farage will be trounced, UKIP likely to get only two seats, the Greens none. SNP to threaten to oppose the Queen's Speech with Labour but to be bought off by powers from Cameron. Clegg to scrape by and win his seat. Worth a fiver.
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