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Ever thought about breaking free from the traditional law firm setup and venturing out on your own? With the legal landscape constantly evolving, 2025 might just be the perfect year to kickstart your journey as a freelance solicitor in the UK.
Embracing the Freelance Path
The legal profession is no stranger to change. Since the Solicitors Regulation Authority (SRA) introduced new opportunities in 2019, there’s been a growing buzz around the freelance solicitor model. It offers a blend of flexibility, autonomy, and the chance to tailor your practice exactly how you want it.
But where do you start? If you’re curious about stepping into the freelance world but unsure about the process, you’re not alone. Let’s break down the essentials to get you on your way.
Who Can Become a Freelance Solicitor?
Before diving in, it’s crucial to ensure you meet the SRA’s criteria:
- Experience Matters: You need at least three years of post-qualification experience as a solicitor.
- Solo Practice: Operate in your own name; no trading names or service companies. This means you’re self-employed and not part of a partnership or limited company.
- No Employees: You can’t employ staff for your legal services. This includes not contracting out work related to your practice.
- Direct Client Engagement: Clients should engage you directly, and fees should be paid straight to you.
Providing Reserved Legal Services
If you’re planning to offer reserved legal services (like litigation or conveyancing), there are a few extra boxes to tick:
- UK Presence: Maintain a practising address in the UK.
- Proper Insurance: Secure adequate and appropriate professional indemnity insurance to cover your services.
- Handling Client Money: You’re limited to holding client funds for costs and disbursements not yet billed. For other client monies, alternative arrangements are necessary.
Steps to Launch Your Freelance Practice
- Register with the SRA: Notify the SRA of your intent to practise as a freelancer by submitting the appropriate form on their website. Once approved (usually within a few days if you have an unrestricted practising certificate), your status will be updated for public record.
- Secure Indemnity Insurance: While the SRA doesn’t mandate professional indemnity insurance for non-reserved work, it’s wise to have coverage. For reserved activities, insurance is a must. Protecting yourself against potential claims is just good business sense.
- Get Your Compliance in Order:
- Anti-Money Laundering (AML) Procedures: Establish risk assessment policies and client identity verification processes.
- Transparency Rules: Clearly display your fees and complaints procedure on your website or marketing materials, especially for reserved work.
- Data Protection: Register with the Information Commissioner’s Office (ICO) to ensure you’re handling client data appropriately.
- Client Care Letters: Inform clients of your freelance status and any implications it may have on indemnity protections.
Things to Consider
While freelancing offers numerous benefits, it’s important to be aware of certain limitations:
- Client Funds: You’re restricted in how you can handle client money. Consider using Third Party Managed Accounts (TPMAs) for holding funds outside of costs and disbursements.
- Undertakings: Be cautious with the promises you make on behalf of clients, especially if using TPMAs.
- No Support Staff: Without the ability to employ others, administrative tasks fall on your shoulders.
Frequently Asked Questions
Q: Do I need run-off cover when I stop practising?
A: The SRA doesn’t require freelance solicitors to purchase run-off cover upon cessation. However, considering the nature of legal claims and limitation periods, it might be prudent to obtain coverage for a few years after you stop practising.
Q: Can I use a trading name or set up a limited company?
A: For reserved legal activities, you must practise under your personal name and cannot operate through a limited company or LLP.
Q: How do I manage without support staff?
A: Many freelance solicitors leverage technology, virtual assistants, or outsourcing for administrative tasks. It’s all about finding efficient solutions that work for you.
Ready to Take the Leap?
Becoming a freelance solicitor is an exciting journey that offers control over your career like never before. If you’re contemplating this path and want tailored advice or support, we’re here to help.
Book a discovery call with Regulated Risks today, and let’s explore how we can assist you in building a successful freelance practice.
We work with firms of all sizes to help them navigate the complex regulatory environment and ensure their compliance.
Book a Discovery Call with us today to discuss your business needs and partner with us for a secure, thriving future.
