Client Account Interest Policy
- Under the provisions of the Solicitors Regulation Authority’s Solicitors Accounts Rules 2019, we are required to account to our clients for interest on money held by us in our client account when it is fair and reasonable to do so.
- The holding of client money is incidental to the carrying out of client’s instructions. In addition, we are required to hold client money in an ‘Instant Access’ account to facilitate transactions. As a result, the rates of interest paid under this policy is low.
- Interest will be paid where the amount calculated on the balance held exceeds £100 and we have retained that money for more than one calendar month. Where money is held in relation to separate matters for the same client, we will treat the matters separately, unless the matters are so closely related that they should be considered together. We will calculate the interest due to a client using the rates of interest payable by NatWest on their “Client Deposit Manager” (see https://www.natwest.com/business/savings/client-deposit-manager.html).
- Where client monies are held in our general client account we will pay interest without deducting tax at source. Our clients will be responsible for declaring any interest to HM Revenue & Customs. Where client monies are held in a designated deposit account, interest is generally paid net of basic rate income tax.
- Interest will be calculated on a daily basis, using the average rates of interest offered to business customers on ‘Instant Access’ accounts.
- Interest will be calculated on cleared client funds. In the case of cheques received, this will be 6 days after the cheque has been deposited with our bank, and for amounts received in cash, or via credit or debit card, standing orders, BACS and CHAPS, interest will accrue from the day of receipt into our client account.
- Clients may contract out of receiving interest by signing a written agreement with the firm.