What type of lawyer makes the most money?

Dec 05, 2022

Written By Thomas Cserep

Lawyers are some of the highest earners in the UK. However, the amount you take home at the end of each month will depend on a number of factors, which we will discuss below.

The importance of location

The location where your law firm is based will have a big impact on your salary. For example, whilst newly qualified lawyers could potentially earn in the region of £100,000 a year in London, outside the capital the picture is vastly different.

Newly qualified lawyers outside of London usually take home between £27,000-£60,000 a year, whereas lawyers with the same level of experience earn in the region of £30,000-£38,000 in Scotland.

The area of law you work in

The area of law that you choose to specialise and work in will be a major determinant of your income.

The most profitable legal area is commercial and corporate law, where solicitors can easily earn over £100,000 a year. Commercial lawyers provide business-related advice to companies, making sure that they comply with regulation and a particular country’s legal system.

They also help shape a company’s trajectory from a legal perspective and help protect them against risks when drafting out deals.

Commercial and corporate lawyers earn the most out of all the different types of solicitors as they work closely with banks and other financial institutions and are involved in high-value transactions.

While we cannot argue with the salary, commercial and corporate lawyers often complain about the stress and long hours that come with the job, which is down to the nature of the work they do.

On the other hand, lawyers who work in the field of personal injury, immigration and family are paid the least in the UK.

The type of law firm you work for

The type of law firm you end up working for will also play a key role in deciding your salary.

As you would expect, you will get a higher salary if you choose to work in the private sector rather than the public one. As you saw in the section before, lawyers who deal with public legal matters such as immigration and family find themselves in some of the lowest-paid positions you can get as a solicitor.

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The best paid solicitors in the UK work for US-based firms in London. For example, a newly qualified lawyer can earn as much as £150,000 a year if they receive an offer to work at Kirkland & Ellis, while a similar position at Latham & Watkins could come with a contract worth £137,000.

These US-based firms count some of the biggest companies in the world as their clients and are involved in numerous high-value cases.

The next highest paid solicitors work for City and Magic Circle firms. The term ‘Magic Circle’ is used to refer to the five biggest law firms based in the UK, all of which are headquartered in London and mostly work in corporate law.

Even though Magic Circle firms have cut starting salaries for newly qualified lawyers by as much 10% due to the COVID-19 pandemic, solicitors can still take home a healthy income valued around £90,000 a year.

City firms pay their newly qualified solicitors between £66,500 and £82,500 a year, with Ashurst offering contracts worth £105,000.

In general, it is better to work for a larger law firm than a smaller one or as a sole practitioner. Bigger law firms are able to attract more prolific clients and are thus able to charge more for dealing with their cases. Smaller firms do have advantages, such as greater responsibility.

As you can see, lawyers’ salaries vary a lot and they depend on a range of factors, including where the firm is located, the type of firm it is and the area of law it specialises in.

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