New SRA accounting rules – what’s changing?

19th July 2019

The current Accounts Rules are made up of over 40 detailed requirements, making it difficult for firms to fully understand what is required of them, as well as giving firms no flexibility to adapt them to their own practices and decide how best to look after client’s money.

 

The new rules coming into effect 25 November 2019 will see a much-needed simplification, being less prescriptive and a lot more targeted.

The SRA have cut down to only 13 rules, outlined in just over 6 pages.

 

So, what are the key changes?

 

  1. To simplify the Accounts Rules – focusing on key requirements for keeping client money safe. The 14 day rule will now be replaced with the word “promptly”, which will feature in most of the other rules.
  2. Change the definition of client money – such change may mean that some firms may no longer need a client account hence, reduce compliance costs for firms due to potentially no longer requiring an Accountant’s Report.
  3. Provide an alternative to holding client money – introducing Third Party Managed Accounts (TPMAs) as a means for managing payments and transactions.

 

To support the new Accounts Rules (and other regulations) the SRA has issued guidance on several areas to assist solicitors as these changes come into effect. The guidance is available on the SRA’s website www.sra.org.uk/solicitors/guidance/guidance.page.

 

Note: changes will be effective immediately from 25 November 2019!

 

Find out more about changes to take place here.

(http://www.sra.org.uk/sra/news/press/standards-regulations-start-date-2019.page)



 
Other items in Blogs
 
Paul Jefferson
2nd April 2020 Tax Planning for COVID-19 – A Brief Guide

Our Tax Department has written ‘A Brief Guide to Tax Planning for COVID-19’ please click the link below:   Tax planning for COVID-19 Brief Guide  

Read More »

Trina Nunn
2nd April 2020 COVID-19: HMRC Delays MTD ‘Digital links requirement’ until 1 April 2021

In light of the Covid-19 pandemic presenting unprecedented challenges for everyone, HMRC has announced a one year deferment to the requirement to digitally link separate software programmes when preparing your VAT return. The soft landing period of MTD (Making Tax Digital) had originally been in place for businesses to make a manual transfer – this…

Read More »

Harriet Sim
31st March 2020 COVID-19: July POAs

With an increasing pressure on the government to provide financial support to UK taxpayers during the COVID-19 pandemic, amongst other proposals, the government announced a deferral of the due date of the second payment on account for 2019/20.   Initially it was unclear whether this would apply only to self-employed individuals. Clarification has now been…

Read More »

Ian Piper
30th March 2020 Coronavirus Related VAT Deferral: Cancel DD with Bank

It is fairly well publicised now that as part of the Government’s financial support package for businesses during this Coronavirus outbreak, these businesses can, if they wish, defer their next VAT payment(s) (those due between 20 March and 30 June 2020). Interest and penalties will not be charged on such a deferral. What was not…

Read More »

Chris Kelly
27th March 2020 COVID-19: Organising your Business Finances

  Whilst the Government have announced a business finance support package, it is unlikely to be accessible for several days (the loans via the banks) or weeks (the grants via HMRC/Local Authorities). Not all businesses will meet the criteria for them anyway.  There is more to come from the Government, but in the meantime business…

Read More »

Chris Ridgeon
26th March 2020 Help for the Self-Employed

The new Chancellor, Rishi Sunak, has announced this afternoon (26th March 2020) much needed support for the self-employed. This will be known as the Coronavirus Self-Employment Income Support Scheme.   As in any support, there are conditions and the detail will need to be scrutinised.   To be eligible for the scheme there are various…

Read More »