This website uses cookies

We use cookies to improve your experience on our website. If you continue without changing your settings, we'll assume that you are happy to accept all cookies on the CLC website. You can change your settings at any time.

Annual Regulatory Fees

CLC Practice fees explained

The CLC charges an annual Practice Fee to all CLC regulated practices. The practice fee is levied in November of each year and is based on the turnover that the practice declares during the PII renewal round which concludes in June of the same year. The practice fee has 3 components which are described below.

Practices are given the option of making payment by direct debit over the remaining period of the licence. Should the entity cease trading or exit CLC regulation (voluntarily surrender its licence) before the next licence renewal point, i.e. 01 November. Any unpaid amounts will be collected by the CLC at the next collection following notification by the practice.

1. The Practice Fee is levied on practices to recover the direct costs of regulation incurred by the CLC. This fee is collected in November, however payment can be spread over 12 months.

Practice Fund (2022-23)

Turnover Banding

Turnover Banding

£0 – £100,000

£638

£100,001 – £250,000

£638 plus 0.610.%

of turnover in excess of £100,000

£250,001 – £500,000

£1,553 plus 0.583%

of turnover in excess of £250,000

£500,001 – £1,000,000

£3,011 plus 0.539%

of turnover in excess of £500,000

£1,000,001 – £2,000,000

£5,706 plus 0.530%

of turnover in excess of £1,000,000

£2,000,001 – £4,000,000

£11,006 plus 0.522%

of turnover in excess of £2,000,000

£4,000,001 – £8,000,000

£21,446 plus 0.468%

of turnover in excess of £4,000,000

£8,000,001 – £16,000,000

£40,166 plus 0.464%

of turnover in excess of £8,000,000

£16,000,001 and over

£77,286 plus 0.460%

of turnover in excess of £16,000,000

2. The Compensation Fund Contribution is levied on practices to fund the direct operating costs and reserving of the fund. This fee is collected in November; however, payment can be spread over 12 months. The contributions are ring fenced and used only for:

  • Intervention and practice closure related expenditure (this includes costs associated with finalisation of client matters and storage of files)
  • Compensation Fund Grant payments (this includes the payment of grants and, where appropriate, legal fees associated with claims)

3. The OLC levy to practices is determined by the annual charge to the CLC of the Legal Ombudsman costs. The Legal Ombudsman contribution year (April to March) is different to the Practice Fee and Compensation Fund contribution year (November to October).

a) An availability fee comprising 70% of the ombudsman cost will be allocated to practices based on the proportion of each practices Practice Fee to the aggregate of all Practice Fees charged.

b) A usage fee comprising 30% of the ombudsman cost which is allocated to practices based on the 3-year average number of cases for each practice accepted for investigation by the Legal Ombudsman (as per records and data provided by the Legal Ombudsman).

c) Any usage fees relating to closed practices will be added to the total availability fee and allocated on the same basis.

The most recent estimates available from the Legal Ombudsman will be used to calculate the fee due in May 2024 for the period April 2024 to March 2025. The fee payable by practices will be amended during the collection period when updated estimates (July 2024) and the final invoice (March 2025) is received from the legal Ombudsman.

Compensation Fund (2022-23)

Turnover Banding

Compensation Contribution Payable

£0 – £100,000

£500

£100,001 – £250,000

£500 plus 0.165%

of turnover in excess of £100,000

£250,001 – £500,000

£748 plus 0.158%

of turnover in excess of £250,000

£500,001 – £1,000,000

£1,143 plus 0.122%

of turnover in excess of £500,000

£1,000,001 – £2,000,000

£1,753 plus 0.118%

of turnover in excess of £1,000,000

£2,000,001 – £4,000,000

£2,933 plus 0.112%

of turnover in excess of £2,000,000

£4,000,001 – £8,000,000

£5,173 plus 0.079%

of turnover in excess of £4,000,000

£8,000,001 – £16,000,000

£8,333 plus 0.078%

of turnover in excess of £8,000,000

£16,000,001 and over

£14,573 plus 0.077%

of turnover in excess of £16,000,000

About

Consumers

Lawyers

Trainee Lawyers

Regulation