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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 Annual Regulatory Fee has 3 components:

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 the payment can be spread over 12 months.

 

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 the 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)

 

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. 50% (previously 70%) of the total cost is allocated to all practices proportionate to their practice fee. This is for the availability of the Ombudsman service.

b. 50% (previously 30%) of the total cost is allocated to practices using the case numbers provided by and used in the Ombudsman’s cost allocation calculations. The CLC uses the case numbers provided by LeO.

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

The CLC wrote to all practices in April 2024 advising of changes to the billing arrangements and that we would amend the levy collection invoice (which was initially based on the prior year’s actual charge) once we had received the new estimates from LeO. LeO has now issued the estimate for 2024/25 and the levy collections is being amended based on the revised allocations between usage and availability, updated case numbers and the new cost estimate.

Because LeO use the number of cases accepted for investigation to allocate cost to regulators, the CLC uses these same case numbers (as advised by LeO) to allocate the usage cost.

 

 

Practices are given the option of making the payment by direct debit over the remaining period of the licensing year. 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.

 

Practice Fund (2024-25)

Turnover Banding

Turnover Banding


£0 – £100,000

£695

£100,001 – £250,000

£695 plus 0.665%

of turnover in excess of £100,000

£250,001 – £500,000

£1,693 plus 0.635%

of turnover in excess of £250,000

£500,001 – £1,000,000

£3,280 plus 0.587%

of turnover in excess of £500,000

£1,000,001 – £2,000,000

£6,215 plus 0.578%

of turnover in excess of £1,000,000

£2,000,001 – £4,000,000

£11,995 plus 0.569%

of turnover in excess of £2,000,000

£4,000,001 – £8,000,000

£23,375 plus 0.510%

of turnover in excess of £4,000,000

£8,000,001 – £16,000,000

£43,775 plus 0.506%

of turnover in excess of £8,000,000

£16,000,001 and over

£84,255 plus 0.501%

of turnover in excess of £16,000,000

Compensation Fund (2024-25)

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

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