Most corporate Irish law firms are optimistic about the year ahead but two-thirds are reporting turnover to be below pre-pandemic levels.

Smith & Williamson’s annual Survey of Law Firms in Ireland, with research conducted by Amárach, finds that two-thirds of firms are anticipating an improved outlook for the sector in 2022.

Four out of ten firms reported that 2021 fee income has increased, rising to 53% among the Top 20 firms.  However, just under half of smaller Dublin firms also experienced a downward impact on fees due to competitive pressures.

Over half of firms (58%) reported that profits are still below pre-Covid levels.

A significant number of law firms (48%) continued to avail of state waged subsidies during 2021, after 70% take-up last year.

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In terms of tax, 29% of firms used tax warehousing and deferral of tax payments this year, down from 43% in 2020.

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The S&W Law Survey reports that one in three firms increased staff numbers over the last twelve months, while one in four firms reduced staff numbers.

Most of the Top 20 firms reported that they are facilitating remote working going forward, but one in three regional firms and one in five smaller Dublin firms state that they are unlikely to do so.

Paul Wyse (pictured) , Managing Director of Professional Services at Smith & Williamson, commented:  said: “In terms of talent management, we are seeing a shift in control from company to employee, as employees re-examine their work life balance and their working arrangements. This transition to remote work has also seen an impact on cybersecurity and management of risk.

“Although much uncertainty remains, and of course there has been a significant variance across different sectors of the economy, to date Ireland has weathered the Covid-19 related economic impact remarkably well.

“While the Covid-19 Pandemic and Brexit have caused turbulence in profits throughout the last year, from the survey we are seeing a legal sector with a much more positive outlook for 2022,” Wyse added.

Smith & Williamson employs over 120 people in Ireland at offices in Sandyford, Dublin City Centre and Belfast. In  September 2020, Smith & Williamson merged with Tilney to form Tilney Smith & Williamson.