Overview
This article outlines how law firms may pass certain Legl costs onto their clients, and the key regulatory considerations to be aware of when doing so.
By familiarising yourself with the SRA's guidance and understanding the regulations surrounding payment charges, you can ensure compliance and maintain transparency in your fee structure.
Deciding whether to pass on costs
To ensure transparency and compliance, it is important to carefully consider which costs you pass on to clients.
We recommend reviewing the Solicitors Regulation Authority (SRA) guidance on taking money for your firm’s costs before proceeding with any fee-related decisions.
Charging for CDD reports
You can pass the cost of a CDD report on to your clients.
However, it is important that your client is aware of this charge. Additional guidance is available on best practices for charging clients for CDD reports.
Payment surcharges
The Consumer Rights Regulations 2012 prohibit firms from adding payment surcharges on top of payment fees.
This means clients must not be charged extra for making payments. Further information is available in the official government guidance on payment surcharges.
ℹ️ Further guidance
GOV.UK | Consumer Rights Regulations 2012
Important information
Important:
Billing decisions remain the responsibility of your firm
Clients must be informed of any charges
Payment surcharges are not permitted