Business Services, Business Tax

Accounting Update: New Solicitors Regulation Authority (SRA) Accounting Rules for 2019

By RJP LLP

Accounting Update: New Solicitors Regulation Authority (SRA) Accounting Rules for 2019

The Solicitors Regulation Authority (SRA) Accounting Rules have been reformed with effect from 25th November 2019, in order to allow solicitors more flexibility in the way they can work.

The new SRA Accounting Rules will continue to prioritise the protection of client money, but they are more outcome-focused, concise and targeted than the existing rules. Unlike the old rules, they grant solicitors more chance to use their own professional judgement when it comes to protecting client money, rather than having to comply with lots of specific technical rules. For example, the new rules allow solicitors to ensure payment transfers are made “promptly”, rather than stipulating a fixed time period of 14 days for transferring of costs and the next working day for banking client money. The exact definition of “promptly” is left open for the solicitor to decide.

How have the SRA Accounting Rules changed?

There were previously 52 SRA Accounting Rules (outlined in the 2011 version) but this has been scaled down to 13. The main changes being as follows:

Money from the Legal Aid Agency is no longer specifically included;
Disbursements under rule 8.4 cannot be transferred unless they are included on a bill or written notification of costs. If the firm usually included disbursements on a completion statement, then it will be necessary to ensure that the legal cashier either has a copy or is considering moving all disbursements to the bill;
It will be possible to ‘opt-out’ of holding client money via use of Third Party Managed Accounts (TPMAs). If this is the case, both clients and the SRA should be advised where a TPMA is used and this needs to be monitored;
Written policy should be put into place outlining the firm’s accounts procedure and the dates in which transfers/payments etc will be made. Provided a firm is already compliant, very little else needs to change. By and large ‘adopting’ the current rules will ensure firms are meeting these new requirements;
All SRA registered solicitors also need to display an SRA digital badge on their company website

If you have any questions relating to the new SRA Accounting Rules, please contact Ben Simper at bs@rjp.co.uk

How to get onboard with RJP

Talk to us

Have an initial discussion with a member of the RJP team to identify ways we can enhance your business's growth with our comprehensive support and strategic advice.

Hassle-free migration

Choose RJP and we'll smoothly manage all transitions, handling paperwork, coordinating with your current accountant, and ensuring no deadlines are missed for a worry-free experience.

A pathway to growth

Finally, we will send you the required documents to sign and return, leaving you to continue leading your business, backed by our abundant, responsive advice and support.

2024 Budget in depth – Key changes to capital gains tax

Business Services, Business Tax, Personal Taxation

Budget 2024 In depth – Inheritance tax changes

Business Services, Business Tax, Personal tax

Budget 2024 – What are the new tax rules for non-doms?

Personal tax, Probate and Inheritance Tax

Here’s what our clients have to say

Hear directly from our clients about how RJP's personal, straightforward approach has made all the difference in their business and personal success.

"I just wanted to drop you a short note to say how grateful I am for the support that RJP has provided over the past 4 weeks while our Financial Controller was away. I struggle to comprehend how much work your staff get through during their weekly visits and they are always a pleasure to have around the office."

"I wanted to write and express our gratitude for your help and hard work in getting Probate through and settling all the taxes. I am so pleased that we selected RJP, as your professional help and updates throughout this process have been invaluable. If at any time in the future Probate assessment may be needed, you will be our first port of call. Once again, many thanks to the whole team."

"I would like to take this opportunity to thank you very much for the amazing job you have done navigating us through this whole process. My family and I also really appreciate the care and compassion demonstrated by you and your team in every dealing. Our thanks to everyone."

"Just a quick e-mail from me to thank you for achieving the target for producing the draft accounts – it is very much appreciated and gives a first class impression of your firm. Many thanks."

"RJP provide our company with a complete service which takes the stress and strain away from the day to day running of our accounts! Their understanding of our business and their patience and advice is invaluable."

Get the latest tax tips to your inbox every month

FAQs

At RJP, we understand that keeping a finger on the pulse of your business's health is crucial. That's why we offer management reporting services—think of them as a regular health check for your company. These insights show you the real-time performance of your business, helping you make informed decisions to nurture and grow your enterprise.

We love seeing your business flourish! Growth and improvement are at the heart of our practical advice. From the ins and outs of everyday operations to big-picture strategic moves, we're here to offer clear, actionable steps that can propel your business forward.

We know dealing with the issue of compliance and auditing can be less than thrilling. That's exactly why we're here—to handle the complex stuff so you don't have to. We offer comprehensive compliance services, ensuring everything is up-to-date without you having to wade through a sea of regulations.

Absolutely! There's a world of opportunity out there to support your business financially, and we're well-equipped to be your guide. We can help you understand and access HMRC’s tax relief schemes that are relevant to you and your business, making sure you're not missing out on any potential benefits.

When you need us, we're just a call or an email away—no question is too small or too large. We're known for our quick responses and our fixed fees mean you can reach out without worrying about unexpected costs. Plus, we always keep things simple and straight to the point. We're not just your accountants; we're part of your team, ready to support both your business and personal needs.