Client Interest

Brindley Twist Tafft & James LLP (“the Firm”)

Policy on Interest paid to clients on Client Account

 

General

The main purpose of the SRA Accounts Rules (2019) (“the Rules”) is to keep client money safe and available on demand for the purpose for which it was provided.  The Rules also provide for the payment of interest, calculated by reference to a fair rate, when appropriate.

Whilst seeking to pay clients a fair rate of interest, the Firm is not and must not behave as a bank; indeed under the Rules, the Firm is not permitted to provide banking facilities.  Accordingly, we cannot offer rates comparable with the best rates provided by banks, particularly given the requirement of the Rules that client money is available on demand.

Interest, where applicable, is paid gross and should be included in the client’s tax return.  This applies equally to private individual clients, trust clients and corporate clients.  This Firm does not give tax advice and you are advised to discuss this with your own advisor or accountant.

 

The Firm’s approach

The rate of interest the Firm pays (if any) fluctuates depending upon the rate of interest that the Firm receives and the criteria set out below.

The Firm does not pay the full rate of interest that it earns on its client’s funds because it is an enhanced rate that the Firm secures as a result of holding significant levels of client funds in the aggregate over a substantial length of time.  We believe that our approach, as set out in this Policy, is equitable taking into account the interest we actually receive and the time and costs we incur in managing and administering client funds.

 

Interest payable

With effect from 1^st July 2024, at the conclusion of the specific matter to which funds relate, if we have held funds for in excess of three months and those funds would generate interest payable to the client (or in the case of an estate the beneficiaries) in accordance with this policy in excess of £100 we will pay you the interest due, if any.  This interest will be calculated at a rate of 0.5% below the lowest rate of interest we receive on our client account.

If the interest due, based on the above calculation method, is less than £100, or if the funds have not been held for more than three months, then no interest will be paid to the client (or the beneficiaries) on the basis that it is a de minimis amount.  The Firm takes the view that for any funds held for less than the time set out above and/or which generate interest below the sum set out above, it is reasonable for the Firm to retain those funds to cover the administration cost of dealing with those client funds.

This also saves clients having to remember to disclose small amounts of interest on their tax returns.

 

Alternative arrangements

Where client money is held on non-interest bearing accounts, there is no interest to share with the client. 

 

The person responsible for this policy is Susan Faulkner. 

If you require any further information please do not hesitate to Contact Us.