Running a law firm or working as a legal professional is financially complex in ways that a general accountant will rarely appreciate. SRA Accounts Rules compliance, client money obligations, partner profit-sharing, lock-up management, and the personal tax position of fee-earning solicitors all require an adviser who understands the legal sector from the inside.
Consultax provide dedicated accounting services for lawyers and specialist law firm accounting built around the specific compliance obligations, financial structures, and tax considerations that define the UK legal profession. Whether you are a sole practitioner, a partner in a regional firm, a solicitor in a limited company, or a managing partner overseeing the finances of a growing practice — we handle the numbers with the precision your profession demands.
Reliable, proactive, and results-driven, we apply the same level of dedication to your success that you bring to your business every day.
We go beyond the numbers to offer guidance that’s tailored, and built for growth.
Your goals matter, so we deliver attentive, custom support designed to guide you towards lasting success.
We prioritise clear communication, accounting support you can understand and rely on.
Consultax works with legal professionals and law firms across every structure, size, and specialism. Whether you are an individual solicitor managing your own tax affairs or a managing partner overseeing the financial operations of a multi-partner firm, your financial needs require specialist handling — not a one-size-fits-all approach.
As dedicated accountants for lawyers and specialist accountants for legal professionals, we work with:
Solicitors in Private Practice
As specialist accountants for solicitors, we manage the personal tax position of practising solicitors including self-employed income, PAYE from employed positions, partner drawings, and the allowable professional expenses that generalist accountants routinely miss.
Law Firm Partners
We provide detailed partner accounting covering capital accounts, profit-sharing arrangements, personal tax on partnership income, pension contributions, and annual self-assessment filings prepared correctly and on time.
Sole Practitioner Solicitors
As a dedicated legal sector accountant for sole practitioners, we manage your full financial picture: annual accounts, self-assessment, VAT, payroll (if applicable), client account reconciliation, and SRA Accountant's Report preparation.
LLP Partners & LLP Accounts
We prepare LLP accounts, advise on designated member obligations, manage profit allocations, and handle the personal tax returns of all LLP members with accuracy and within HMRC deadlines.
Solicitors Working Through a Limited Company
We advise on whether a personal limited company is appropriate, manage company formation, book-keeping, payroll, dividends, annual accounts, and corporation tax — ensuring the structure delivers the efficiency it was established to achieve.
Law Firm Practices
As experienced accountants for law firms, we provide full practice-level accounting: annual accounts, partnership or corporate tax returns, payroll, VAT compliance, management accounts, and cash flow oversight.
Barristers & Advocates
Self-employed barristers operate under a different tax and accounting framework from solicitors. We provide self-assessment, VAT advice (including the VAT position of chambers), and personal tax planning for barristers at all stages of their career.
In-House Legal & Freelance Solicitors
We handle self-assessment and tax planning for in-house legal professionals with mixed income streams, and provide dedicated accounting support for freelance solicitors managing self-employed income, VAT, and ongoing compliance.
The UK legal sector is navigating a period of significant regulatory and financial change. The following developments are directly relevant to the accounting and compliance position of most law firms and legal professionals — and the cost of being unprepared is real.
SRA Accounts Rules Overhaul (2027)
Almost all law firms holding client money will be required to submit an annual Accountant's Report directly to the SRA — whether qualified or not — within six months of year-end. Higher-risk firms (turnover above £600,000 or client balances above £2 million) face separation of COLP/COFA and management roles. Preparation needs to begin now.
Making Tax Digital (April 2026)
Self-employed solicitors, sole practitioners, and law firm partners with gross income above £50,000 must file quarterly digital submissions from April 2026. The threshold drops to £30,000 in 2027 and £20,000 in 2028. Most individual legal professionals are not yet MTD-compliant.
Partnership Tax Complexity
Partnership drawings, capital account interest, salaried partner arrangements, and pension contributions require careful handling. For those earning above the £100,000 personal allowance threshold, effective marginal rates of 60 per cent can be reduced through proper planning.
Client Account Mismanagement Risk
The SRA requires a full reconciliation of all client accounts at least every five weeks. Failures are among the most common Accounts Rules breaches — with consequences from regulatory sanction to SRA intervention. An experienced legal sector accountant helps prevent these failures before they escalate.
Every service we provide is designed around the specific financial and regulatory obligations of the UK legal profession — not adapted from a generic small business template.
Law Firm Accounts & Annual Reporting
As specialist providers of law firm accounting services, we prepare annual accounts for sole practitioners, partnerships, LLPs, and limited company law firms — covering income and expenditure, balance sheet, profit allocation schedules, partner capital accounts, and all supporting schedules required for tax compliance, SRA reporting, and bank reporting.
Best for: Sole practitioners, partnership and LLP law firms, limited company solicitors, and legal practices of all sizes requiring professionally prepared annual accounts.
SRA Accountant's Report Preparation
We review your client account reconciliations, identify any SRA Accounts Rules breaches, prepare the formal report and checklist, and ensure your COFA receives the information they need to maintain compliance throughout the year — not just at year-end. Under the 2027 changes, the reporting accountant will submit directly to the SRA.
Best for: All law firms holding client money, including those currently exempt who may be captured by the 2027 rule changes, and firms wishing to review their existing Accountant's Report preparation.
Law Firm Book-keeping Services
Our law firm book-keeping covers income across all fee streams, expenditure tracking, client and office account reconciliation, supplier payments, bank reconciliations, and month-end management information — across Xero, QuickBooks, Sage, and FreeAgent, integrated with your practice management system.
Best for: Sole practitioners and smaller law firms without a dedicated finance function, and larger practices seeking an external book-keeping partner.
Personal Tax Returns for Solicitors & Partners
As specialist accountants for solicitors, we prepare personal tax returns with a thorough review of partnership drawings, capital account interest, employed income, pension contributions, rental income, investments, and the personal allowance trap for those earning above £100,000.
Best for: Law firm partners, LLP members, salaried partners, sole practitioner solicitors, and any legal professional with income beyond straightforward PAYE employment.
Partnership & LLP Tax Compliance
We manage the full cycle of partnership and LLP tax compliance — from year-end accounts to partnership return, profit allocation verification, and each partner's personal self-assessment — as an integrated, co-ordinated service that eliminates gaps and inconsistencies.
Best for: All partnership and LLP structured law firms where individual partner returns need to align precisely with the firm's partnership accounts and tax return.
Law Firm Payroll Services
We provide complete payroll management for law firms: monthly payroll, PAYE and National Insurance, auto-enrolment pensions, and P11D benefit reporting — with all HMRC RTI submissions made on time, every time.
Best for: Law firms of any size requiring reliable, accurate payroll as a fully outsourced service, including those with complex partner and fee-earner pay structures.
VAT for Law Firms & Legal Professionals
We provide specialist VAT advice covering registration, returns, partial exemption calculations, disbursements, international legal services, and proactive VAT planning — ensuring your firm's position is correct, defensible, and not costing more than it should.
Best for: Law firms with mixed taxable and exempt supplies, sole practitioners approaching the VAT threshold, and firms with international client work affecting VAT recovery.
Tax Planning for Legal Professionals
As dedicated accountants for legal professionals, we review your income structure, pension position, investment activity, and personal circumstances to identify legitimate savings — including the £100,000 personal allowance threshold, pension strategies, timing of profit distributions, and structural change planning. See our tax planning services.
Best for: Senior associates approaching partnership, law firm partners earning above £100,000, solicitors planning a career transition, and legal professionals wanting a proactive annual tax review.
Why Consultax
We are not a general practice that occasionally handles a solicitor's tax return. Consultax provides dedicated accounting services for lawyers and law firm book-keeping services with the depth of knowledge, proactive approach, and professional credentials that the UK legal sector demands — backed by ICAEW accreditation and 17 years of Chartered Accountancy experience led by a PwC-trained practitioner.
Led by a PwC-Trained Chartered Accountant
Varun Gupta brings over 17 years of experience across complex tax structures and specialist advisory. When you engage Consultax, you receive senior-level expertise from day one — not a junior processing returns from a generic template.
Legal Sector Specialist Knowledge
We understand SRA Accounts Rules, client money obligations, partner profit-sharing, and the personal tax complexity of fee-earning solicitors. You will not need to explain how a law firm works to us.
ICAEW Accredited
Fully accredited Chartered Accountants regulated by the ICAEW. Every recommendation is backed by genuine professional qualification and accountability.
Proactive, Year-Round Support
We support your COFA and practice team throughout the year — not only at year-end — so SRA compliance, MTD readiness, and partner tax planning stay under control.
Transparent, Fixed-Fee Pricing
You will always know what you are paying before we begin. No hidden costs, no hourly surprises — clear, agreed pricing from the first conversation.
5-Star Rated on Feefo
Our clients rate us 5 stars on Feefo. We work hard to earn that record with every engagement.
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Quick & affordable, avoid errors and penalties, keep your finances organised with our expert accounting services & bespoke packages.
Frequently Asked Questions
If you hold client money, operate as a partnership or LLP, manage profit-sharing arrangements for partners, or have income from multiple sources as a legal professional, working with a specialist legal sector accountant or dedicated law firm accountant is strongly advisable. Generalist accountants routinely miss SRA compliance obligations, mishandle partner income, fail to claim all allowable professional expenses, and are not equipped to prepare a correct SRA Accountant's Report. The consequences of these failures — regulatory sanction, HMRC penalties, and overpayment of tax — fall on you and your firm, not your accountant.
The SRA Accountant's Report is a statutory compliance document prepared by a qualified reporting accountant to confirm that your firm has complied with the SRA Accounts Rules in its handling of client money. Currently, most law firms holding client money must obtain an Accountant's Report annually, within six months of their financial year-end. Under the forthcoming 2027 rule changes, almost all law firms will be required to submit this report directly to the SRA and the reporting accountant will be responsible for the submission. We prepare and submit SRA Accountant's Reports and advise firms on what the upcoming changes mean for their specific compliance obligations.
The SRA Accounts Rules govern how solicitors and SRA-authorised firms handle client money. Key requirements include maintaining a separate client account for money held on behalf of clients, completing client account reconciliations at least every five weeks, promptly returning client money when it is no longer needed, and maintaining accurate accounting records. Breaches of these rules are among the most common causes of SRA regulatory action and, in serious cases, firm intervention. We advise law firms on their compliance position and support their COFA in meeting these obligations throughout the year.
Allowable expenses for legal professionals typically include Law Society and SRA registration fees, professional indemnity insurance, CPD and training costs, professional legal journals and research tools, travel between practice locations, home office costs where applicable, and the cost of professional accounting and compliance support. The precise list depends on your employment status and working arrangements. We review your full expense profile as part of every engagement.
This depends on your practice's size, structure, tax position, liability exposure, and long-term plans. Each structure carries different tax implications, partner obligations, and SRA compliance requirements. We review your specific circumstances and provide a clear recommendation before any structural decision is made.
Stop relying on a general accountant who treats your law firm like any other business. The SRA Accounts Rules, the approaching 2027 regulatory overhaul, Making Tax Digital from April 2026, the personal tax complexity of law firm partners, and the precise financial management that a legal practice demands — all of this requires a specialist, not a generalist.
From SRA Accountant's Reports and law firm book-keeping through partner personal tax, VAT, payroll, and management accounts, Consultax Chartered Accountants handle every financial obligation of your legal practice in one place, at a fixed fee, with complete transparency.
Your goals. Our focus. Accounting with purpose.
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