When the Company receives money from or on behalf of a client, it will be paid into a general client account with RBS who are the Company’s bank.
The rate of interest is normally calculated and applied at the conclusion of the matter.
The amount of interest applied to any money held will be fair and reasonable, taking into account the following:
- The amount held.
- The length of time for which cleared funds are held.
- The rate of interest payable on the amount held in an instant access account at the bank where the client account is kept.
- The practice of the bank where the client account is kept in relation to how often interest is compounded.
Interest will not be paid in any of the following circumstances:
- The amount of interest calculated is £20 or less.
- On money held for the payment of professional disbursements, once counsel etc. has requested a delay in settlement.
- On money held for the LAA.
- On an advance from us into our general client account to fund a payment on your behalf in excess of funds already held for you in that account.
- If there is an agreement to contract out of the provisions of this policy.
Any interest paid to the client is paid without any deduction for income tax. As such, it is the client’s responsibility to inform HMRC of amounts of interest received from us and the implication of this will depend on the client’s own financial circumstances.