It would be best if you took the idea of getting a post-graduation job that might make you able to earn an amount of £100k+ within a tax year. However, most youngsters must think that this is some scam or a joke, this is because they are not reasonably aware of the fact that this is possible to do it. Here is an option if you are an individual who is becoming a lawyer in the UK and dreams to be associated with any one of the UK law firms that are known to be in the magic circle. The minimum amount you can expect to earn after you are qualified is £107,500. Does it sound too good to be true? Let’s delve into the discussion of magic circle salaries and their tax to develop a better understanding.
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What are Magic Circle Salaries and Their Tax?
It is a fact that the magic circle has made it real. This is too good that the starting salaries for fresh graduates who are hunting for good opportunities are better than ever. However, you must be wondering by now what is the reason for this bump in the pay package for the freshers and the new members of the team of the prestigious group of law firms or what are the tax obligations for the NQ lawyers.
This is due to the tendency of lawyers to be the best-paid professionals around the country even fresh graduates. It is because of the type of pay war. Many top-notch law firms around the world are following the same practices. The legal industry is in a non-stop hunt to hire new talent and bring change to the industry. One of the reasons for the huge industry boom is the after-effects of Brexit and COVID. In other words, you can simply say that the required work is way more than the availability of the lawyers. Moreover, several law firms have revealed that many associated have left the industry. This has increased the tendency of hiring freshers as junior lawyers to be a part of the industry support.
Double-Digit Pay Raise
As we all know that being a lawyer in the UK is not an easy job. However, there is a chance of observing an increase in the workload. The lawyers are burnout due to this increase in working hours. The magic circle law firms are even offering the double-digit raise and other perks to sustain the lawyers. In order to ensure the grueling working, offers like on-site dentists and doctors and chef-made meals are being given to the junior lawyers. However, the working hours involve 12 hours and for 7 days a week. This has become a reason to spark the war of pay among the firms that are rivals.
What Does it Mean for the Tax?
Such an attractive package and the perks sound great to the new employees who are on a hunt for jobs after their graduation. Several of the fresh graduate lawyers do not focus on the part of the tax that might come with the handsome amount of salaries and other perks. Higher salaries mean you have to pay higher taxes as well. Other tax obligations are also to be taken into consideration.
Lawyers with such tough schedules must be struggling with tax affairs and relevant implications. When you are associated with a magic circle firm, this is imperative to focus on tax affairs. You will observe the change in your tax obligations in the first year of being the trainee and in the second year of your experience.
The Bottom Line
Now that you have gathered a fair amount of information about magic circle salaries and their tax, we can bring the discussion towards wrapping up. Due to the senior lawyers quitting from the over-scheduled workload of 12 hours seven days a week, the juniors are being rewarded with perks like on-site doctors and dentists along with chef-made meals. This is planned by the government so that the industry can sustain the lawyers to maintain a balance in the magic circle of law firms. However, you can not ignore that the higher salaries will bring in higher tax obligations as well. We hope these few minutes of reading will help you to develop a better understanding of the magic circle salaries and the law firms associated with it.
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Disclaimer: The information about the magic circle salaries and their tax provided in this article includes text and graphics in general. It does not intend to disregard any of the professional advice.