CHARTERED ACCOUNTANTS & REGISTERED AUDITORS.
CHARTERED ACCOUNTANTS & REGISTERED AUDITORS.
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SOLICITORS
THE
SOLICITORS ACCOUNTS RULES 1998
These were passed by the Law Society on 22 July 1998 and became effective
from 1st May 2000 The rules introduce for the first time ten principles which must be
observed by Solicitors in relation to the holding of funds ''RULE 1
PRINCIPLES''. Some examples of the strictness are:Client money be paid into a client account without delay; ''without
delay'' is defined either on the day of receipt or the next working day [Rule
15]. A Solicitor must keep a central record or file of copies of all bills and
other written notification of costs given or sent. In both cases the information
must distinguish between fees, disbursements not yet paid at the date of the
bill and paid disbursements [Rules 32(8)] It is improper to seek blanket agreements, through standard terms of business or otherwise, to hold client money outside a client account [Rule 16 (2)]. A Solicitor who properly requires payment of fees from money held in client account must first send a bill of costs or other written notification of the costs to the client or the paying party. Once this has been done the money earmarked for costs becomes office money and must be transferred out of client account within fourteen days [Rule 19(2) and (3)]. ACCOUNTINGWe have many years of experience and up to date expertise in dealing with
solicitors. We can assist you to ensure that the spirit of the Rule 1 principles are
upheld. We can advise on the establishment and maintenance of proper accounting
systems and proper internal controls over those systems to ensure compliance
with the rules. We can even provide book keeping services on a monthly basis ensuring the client ledger reconciliation requirements are complied with, as well as dealing with VAT Returns and payroll operations. TAXATION
We can deal with effective taxation strategies-whether you intend to
remain in practice or are contemplating retirement. We undertake all compliance work-proactively, to ensure submissions in
time. We can advise on the rules relating to the inclusion of debtors and work
in progress in the accounts, which may have previously been ignored. This
catching up charge becomes effective for accounting period ending in 2000/01 and
the additional profits can be taxed over 10 years. |
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