Fee calculator help 2018/2019

This page provides information for the 2018/2019 fee calculator.

Q1. PC holders (include maternity, exclude REL/RFLs)

A. Enter the number of individuals with a practising certificate (PC). These will be charged at £278 plus a contribution of £90 to the compensation fund per PC holder.

Q2. Regulated individuals eligible for maternity discount

Enter the number of solicitors/RELs/RFLs whose maternity leave or period of leave equivalent to statutory maternity leave starts and ends between 01/11/2018 and 31/10/2019 or who will be on maternity leave at the time of applying. These will receive a 50 per cent discount on the individual regulatory fee (excluding an application handling fee of £48).

Q3. Registered European lawyers (RELs)

A registered European lawyer (REL) is an individual registered with the Solicitors Regulation Authority under regulation 17 of the Establishment Directive Regulations. These will be charged at £278 plus a contribution of £90 to the compensation fund per REL.

Q4. UK-based registered foreign lawyers (RFLs)

A registered foreign lawyer (RFL) is an individual registered with the Solicitors Regulation Authority under section 89 of the Courts and Legal Services Act 1990. These will be charged at £278 plus a contribution of £90 to the compensation fund per RFL.

Q5. Non-UK-based registered foreign lawyers (RFLs)

RFLs based mainly outside of England and Wales will have a reduced individual fee of £100 plus a contribution of £90 to the compensation fund. "Mainly" means that more than 50 per cent of the individual's practice is outside of England and Wales.

Q6. Number of foreign branch offices

UK firms with branches outside England and Wales will be charged a flat fee in relation to each foreign branch. The flat fee will be £200 per foreign branch.

Q7. Turnover

What is turnover?

Turnover refers to a firm's total gross fees arising from work undertaken from offices in England and Wales.

Which turnover figure is used for the periodic fee?

To calculate the 2018/19 periodic fee, we will take the turnover figure declared on the 2017/18 application which will be based on the last closed accounts prior to 31 October 2017 (e.g. Apr 2016 – Mar 2017).

We will use closed accounts where possible. A firm has until 31 August 2018 to notify us if their turnover figure has changed.

What if my firm is a new firm?

For firms authorised during the 2017/2018 practising year, we will use the first twelve months' estimate.

What if my firm is a successor firm?

Where a firm's entity or structure has changed during the practising year, we will use the turnover figure provided when we were notified of the change.

We consider a firm's entity or structure to have changed where there is, for instance, a merger, acquisition or split.

Which figure do I need to provide in this year's application?

You will need to provide the most recent turnover figure available. The figure should cover a 12 month period prior to 1 November 2018. For instance, 1 February 2017 - 31 January 2018.

Please note, the turnover figure provided in this year's bulk renewal application will be used to calculate next year's periodic fee.

What should I do if my turnover figure is an estimate?

If the figure you are going to provide is an estimate, we will accept this. You can contact us at a later date once you have received the closed accounts.


Closed accounts

Closed accounts are defined, in order of preference, as:

  • an audited set of financial statements
  • an unaudited set of financial statements signed off by an accountant
  • a submitted tax return for the year.

Gross fees

Gross fees includes:

  • all professional fees of the firm including remuneration, retained commission, and income of any sort whatsoever of the firm (including notarial fees). Work in Progress (WIP) should be included.

Gross fees does not include:

  • interest, reimbursement of disbursements, VAT, remuneration from a non-private practice source, dividends, rents, and investment profit.

Successor turnover

Successor turnover is relevant where firms have changed through, for example, an acquisition, merger or split. Certain firms affected are required to submit a notice of succession to the SRA with an agreed apportionment of turnover among the affected firms.

As guidance, successor turnover should be calculated based on the turnover figures for each of the affected firms.

If a firm has succeeded to the whole or a part of one or more firms (e.g. through merger or acquisition), successor turnover will be calculated by combining the appropriate proportion of the turnover figure for each of the affected firms which has become part of the successor practice:

  • In a simple merger between firms A and B, combine the turnover figures for each firm.
  • In a merger of one firm (firm A) with part of another firm (e.g. one third of firm B), firm A should add the corresponding proportion of firm B's turnover figure to its turnover figure (e.g. firm A's turnover figure + third of firm B's turnover figure)

For a firm which has split or ceded part of their practice to another firm and wishes this change to be reflected in a successor turnover figure, the successor turnover figure will be a proportion of the turnover figure, as long as it is clear how the turnover figure for such a firm is to be distributed between the successor firms. 100 percent of the turnover figure must be accounted for between the successor firms. For example:

  • In a merger of firm A with one third of firm B, firm B's successor turnover figure will be two thirds of its turnover figure, Firm A's will be its turnover figure plus one third of B's turnover figure;
  • Where firm A and one third of firm B become new firm C, firm A's turnover will be £0 (closed) and B's turnover will be two thirds of its turnover figure. Firm C's successor turnover figures will be the combination of A's turnover figure and one third of firm B's.

In a case where all successor firms agree in the notice of succession on the apportionment of 100 percent of the turnover figures, then the SRA will accept the successor turnover figures.

In the case where all successor firms are unable to agree the apportionment of 100 per cent of the turnover figures, then the SRA will treat the notice of succession as an application for it to determine the turnover figures for the purpose of determining renewal fees. The SRA will determine this apportionment based on the information available and its decision will be final. Firms will not be able to renew recognition without an appropriate successor turnover figure being determined, as this is necessary to calculate the appropriate firms' fees.

Q8. Does your firm hold client money?

For practice in England and Wales, "client money" is defined in rule 12 of the Solicitors' Accounts Rules 2011 as follows:

"All money held or received in the course of practice falls into one or other of the following categories:

(a) 'client money' – money held or received for a client or as trustee, and all other money which is not office money; or

(b) 'office money' – money which belongs to the solicitor or the practice."

For practice outside England and Wales, client money (overseas practice) is defined in the SRA Handbook Glossary 2012 as:

"…money received or held for or on behalf of a client or trust (but excluding money which is held or received by a multi-disciplinary practice - a licensed body providing a range of different services - in relation to those activities for which it is not regulated by the SRA)".