Summary LPC - Solicitors Accounts [EXAM GUIDE]

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