CLSB

Cost of regulation

  • Practising certificate fees

    The CLSB became Approved Regulator under delegated authority of the Association of Costs Lawyers (ACL) on 31 October 2011. For practising year 2012, a Costs Lawyer paid one combined fee of £450.00 for their practising certificate and ACL membership. £250.00 of that combined fee was allocated to the CLSB to fund all its regulatory activities (compliance with the Legal Services Act 2007 and payment of the Legal Services Board and Legal Ombudsman annual levy per regulated Costs Lawyer).

    For practising year 2013 and onwards, the fee for a practising certificate and ACL membership were separated as ACL is a voluntary membership organisation.

    Tax relief on a Costs Lawyer Practising Certificate Fee
    Statutory Instrument: The Income Tax (Professional Fees) Order 2013

    The above SI became effective on 10 May 2013 which added “fees payable to the Costs Lawyer Standards Board on applying for a costs lawyer practising certificate” to the table of fees qualifying for tax relief under S.343 Income Tax (Earnings & Pensions) Act 2003.

    Practising Certificate Fee History


    Year
    Practising Certificate Fee % Change
    2012 £250.00 0%
    2013 £250.00 0%
    2014 £250.00 0%
    2015 £250.00 0%
    2016 £250.00 0%
    2017 £250.00 0%
  • Costs of CLSB

    Costs of Costs Lawyer Standards Board (CLSB)

    The following identifies the main (not all) annual operating costs of the CLSB since 1 January 2013.
    Salaries: Salaries, tax, NI and pension (as appropriate) for CEO, Chair, Non-Executive Directors and Panel Members.
    Services: Include annual levy to LSB and LeO (see individual levy pages).
    Employees: The CLSB employs one full time employee (CEO). The Chair and Non-Executive Directors are employed under letters of engagement. Due to small size of the CLSB, to provide an efficient operating model, all other support services are “bought in” on a needs be basis.

    Year

    Income

    Expenditure
    (Salaries)

    Expenditure
    (Levies)

    Expenditure
    (Travel & subs)

    Expenditure
    (Rent)

    T/F to reserves

    2013

    563 x £250 = £140,750

    £67,320

    £35,968

    £7,327

    £3,011

    £5,000

    2014

    562 x £250 = £140,500

    £64,800

    £47,963

    £7,679

    £2,727

    £10,000

    2015

    598 x £250 = £149,500

    £66,146

    £31,993

    £8,639

    £3,168

    £20,000

    2016

    632 x £250 = £158,000

    £96,347

    £39,478

    £11,128

    £1,838

    £20,000

  • LSB levy

    Legal Services Board (LSB) Levy

    The LSB recovers its annual operating costs under The Legal Services Act 2007 (Levy) (No. 2) Rules 2010. The contribution payable by the CLSB towards those annual operating costs is determined by the number of regulated Costs Lawyers as at 1 April each year.
    In April 2014, the LSB announced it was seeking a statutory instrument under which the CLSB would be liable to pay a minimum levy of £3,000 for years 2014-2015 onwards.

    Year LSB levy What this equates to per
    Costs Lawyer
    1 April 2011 to 31 March 2012 £13,189 411 CL = £32.09
    1 April 2012 to 31 March 2013 £16,164 565 CL = £28.61
    1 April 2013 to 31 March 2014 £14,280 563 CL = £25.36
    1 April 2014 to 31 March 2015 £13,860 562 CL = £24.66
    1 April 2015 to 31 March 2016 £12,936 598 CL = £21.63
    1 April 2016 to 31 March 2017 £12,008 632 CL = £19.00
  • LeO levy

    Legal Ombudsman (LeO) Levy

    The Legal Services Board (LSB) recovers its annual operating costs under The Legal Services Act 2007 (Levy) (No. 2) Rules 2010, this includes the operating costs of LeO. The contribution payable by the CLSB towards the operating costs of LeO is determined by the number of Costs Lawyer service complaints received in the course of the reference period rather than numbers of regulated Costs Lawyers.

    In April 2014, the LSB announced it was seeking a statutory instrument under which the CLSB would be liable to pay a minimum levy of £5,000 to LeO for year 2014-2015 onwards.

    Year LeO levy What this equates to per
    Costs Lawyer
    1 April 2011 to 31 March 2012 £1,211 411 CL = £2.95
    1 April 2012 to 31 March 2013 £1,135 565 CL = £2.01
    1 April 2013 to 31 March 2014 £1,043 563 CL = £1.85
    1 April 2014 to 31 March 2015 £5,000 562 CL = £8.90
    1 April 2015 to 31 March 2016 £5,000 598 CL = £8.36
    1 April 2016 to 31 March 2017 £5,000 632 CL = £7.91