Legal Practice Course
Solicitors’ Accounts
Type
of
money
eg
client
owes
£920.
He
sends
cheque
of
Client
money
Rule
12.2
-‐ £920
or
less
à
all
is
office
money
(Rule
• Money
received
in
respect
of
unpaid
12.7(c)(ii),
17
guidance
note
(i))
and
may
be
paid
disbursements
(eg
SDLT,
Land
Reg
fees,
court
directly
into
office
cash.
fees)
–
not
incurred
or
paid
-‐ more
than
£920
à
£920
is
office
money,
and
• Money
received
from
the
client
on
account
of
the
amount
above
£920
will
be
client
money
=
costs
(no
fees
incurred
by
solicitor
so
the
mixed
payment’
money
belongs
to
client
for
now)
o pay
the
whole
amount
into
client
• Money
held
as
trustee
account
and
transfer
£920
into
office
• Financial
benefit
(commission)
account
within
14
days
-‐
Rules
18.2(b),
18.3
or
Office
money
Rule
12.7
o ‘split’
-‐
£920
into
office
and
balance
into
• Payment
by
solicitor
of
client
-‐
Rule
18.2(a)
rent,
salaries,
business
rates
When
to
pay
office
money
into
client
account
Disbursements
14.2(c)
firm’s
money
is
required
to
replace
Unpaid:
client
money
12.2(d)
money
paid
in
error
out
of
a
client
Paid
or
office
money
12.7(c)(ii),
(iii)
account
Incurred
but
Exception:
unpaid
professional
e.g.
client’s
cheque
unpaid:
disbursements
à
client
money
bounces
-‐ counsel
17.1(c)
payment
received
BUT
MUST
-‐ other
lawyer
from
a
client
in
TRANSFER
TO
-‐ fees
of
expert,
interpreters,
relation
to
a
bill
of
OFFICE
within
14
translators,
process
servers,
costs
days
surveyors,
estate
agents
18.3
receipt
of
a
mixed
BUT
MUST
instructed
by
you
payment
TRANSFER
TO
-‐ not
travel
agents
OFFICE
within
14
days
summary
of
rules:
12.2(c)
12.7(c)(iii)
17
guidance
note
(i)
Overlap
between
17
and
18:
if
you
receive
a
payment
in
settlement
of
a
bill
which
comprises
both
office
money
and
client
money,
Rule
17.1(a)(iii)
then
directs
you
to
Bill
of
costs
Rule
18
Settle
bill
of
costs:
office
account
Exception:
Mixed
payments
Rule
17
à
client
account
1. Pay
whole
sum
into
client
account
2. The
part
which
is
office
money
(eg
to
settle
bill
of
costs)
transferred
into
office
account
within
14
days
of
receipt
Solicitors’ Accounts
Type
of
money
eg
client
owes
£920.
He
sends
cheque
of
Client
money
Rule
12.2
-‐ £920
or
less
à
all
is
office
money
(Rule
• Money
received
in
respect
of
unpaid
12.7(c)(ii),
17
guidance
note
(i))
and
may
be
paid
disbursements
(eg
SDLT,
Land
Reg
fees,
court
directly
into
office
cash.
fees)
–
not
incurred
or
paid
-‐ more
than
£920
à
£920
is
office
money,
and
• Money
received
from
the
client
on
account
of
the
amount
above
£920
will
be
client
money
=
costs
(no
fees
incurred
by
solicitor
so
the
mixed
payment’
money
belongs
to
client
for
now)
o pay
the
whole
amount
into
client
• Money
held
as
trustee
account
and
transfer
£920
into
office
• Financial
benefit
(commission)
account
within
14
days
-‐
Rules
18.2(b),
18.3
or
Office
money
Rule
12.7
o ‘split’
-‐
£920
into
office
and
balance
into
• Payment
by
solicitor
of
client
-‐
Rule
18.2(a)
rent,
salaries,
business
rates
When
to
pay
office
money
into
client
account
Disbursements
14.2(c)
firm’s
money
is
required
to
replace
Unpaid:
client
money
12.2(d)
money
paid
in
error
out
of
a
client
Paid
or
office
money
12.7(c)(ii),
(iii)
account
Incurred
but
Exception:
unpaid
professional
e.g.
client’s
cheque
unpaid:
disbursements
à
client
money
bounces
-‐ counsel
17.1(c)
payment
received
BUT
MUST
-‐ other
lawyer
from
a
client
in
TRANSFER
TO
-‐ fees
of
expert,
interpreters,
relation
to
a
bill
of
OFFICE
within
14
translators,
process
servers,
costs
days
surveyors,
estate
agents
18.3
receipt
of
a
mixed
BUT
MUST
instructed
by
you
payment
TRANSFER
TO
-‐ not
travel
agents
OFFICE
within
14
days
summary
of
rules:
12.2(c)
12.7(c)(iii)
17
guidance
note
(i)
Overlap
between
17
and
18:
if
you
receive
a
payment
in
settlement
of
a
bill
which
comprises
both
office
money
and
client
money,
Rule
17.1(a)(iii)
then
directs
you
to
Bill
of
costs
Rule
18
Settle
bill
of
costs:
office
account
Exception:
Mixed
payments
Rule
17
à
client
account
1. Pay
whole
sum
into
client
account
2. The
part
which
is
office
money
(eg
to
settle
bill
of
costs)
transferred
into
office
account
within
14
days
of
receipt
