02 December 2008

Herbert Smith has scrapped plans to alter its tax year after it calculated that going through with the move could impact on profits.

The firm's current tax year runs from April to March and the company had intended to move this forward a month, which would have enabled partners at the firm - who had not been fully notified of the plan - to defer their tax payments - totalling £50 million - for a year.

But the idea has been shelved after it was decided that it may have resulted in the bill having to be paid using a smaller amount of finance in a year's time, as there is no certainty that the company will make a profit over the coming months.

In related news today, the business has received a citizenship and volunteering award at the Guardian Public Service awards for the pro bono work it has carried out over the last 12 months.