Fee policy 2026/27

What is turnover?

Turnover is the total amount of fees a firm earns from work done in its offices in England and Wales.

Which turnover figure is used for the periodic fee?

For the 2026/27 periodic fee, we will use the turnover figure you gave in your 2025/26 application. This will be based on your latest closed accounts before 31 October 2025 (for example, April 2024 to March 2025).

We will use closed accounts wherever possible. If your turnover figure changes, you must tell us by 30 September 2026.

What if my firm is new?

If your firm was authorised during the 2025/26 practising year, we will use your estimated turnover for the first 12 months.

What if my firm is a successor firm?

If your firm's structure or entity changed during the practising year (for example, due to a merger, acquisition, or split), we will use the turnover figure you provided when you told us about the change.

What turnover figure do I need to provide this year?

You must provide your most recent turnover figure covering a 12-month period before 1 November 2026 (for example, 1 February 2025 to 31 January 2026).

This figure will be used to calculate next year's periodic fee.

What if my turnover figure is an estimate?

You can provide an estimate if needed. You should update us later once your final (closed) accounts are available.

Key definitions

Closed accounts

Closed accounts are, in order of preference:

• audited financial statements
• unaudited financial statements signed off by an accountant
• a submitted tax return.

Gross fees

Gross fees include:

• all professional fees
• retained commission
• any other income of the firm (including notarial fees)
• work in progress.

Gross fees do not include:

• interest
• reimbursement of expenses
• VAT
• income from non-private practice work
• dividends, rent, or investment profits.

Successor turnover

Successor turnover applies when firms change structure (for example, through a merger, acquisition, or split). Firms must agree how to divide turnover and notify us.

How to calculate successor turnover

• Full merger (Firm A + Firm B):
  Add both firms' turnover together.

• Partial merger (Firm A + part of Firm B):
  Add Firm A's turnover and the relevant portion of Firm B's turnover (for example, one third).

• Firm split or transfer of part of a business:
  Turnover must be divided clearly between the firms.
  The total must always add up to 100%.

Examples

• If Firm A merges with one third of Firm B:
  • Firm A = its turnover + one third of Firm B
  • Firm B = two thirds of its turnover
• If Firm A and part of Firm B form a new Firm C:
  • Firm A = £0 (closed)
  • Firm B = remaining turnover (for example, two thirds)
  • Firm C = Firm A's turnover + the transferred portion of Firm B

If firms cannot agree

If firms cannot agree how to divide turnover:

• we will decide the split based on available information
• our decision is final
• firms cannot renew recognition without an agreed or determined turnover figure.

The periodic fee is calculated using this table and the formula:

Fee = (Turnover - C) × B + D

Turnover band	Turnover Range (A)	Pay %* of Turnover within band (B)	Minimum Turnover in band (C)	Minimum Fee in band (D)
A	£0 - £19,999	0.92%	£0	£100
B	£20,000 - £149,999	0.54%	£20,000	£184
C	£150,000 - £499,999	0.53%	£150,000	£886
D	£500,000 - £999,999	0.51%	£500,000	£2,741
E	£1,000,000 - £2,999,999	0.48%	£1,000,000	£5,291
F	£3,000,000 - £9,999,999	0.33%	£3,000,000	£14,891
G	£10,000,000 - £29,999,999	0.28%	£10,000,000	£37,991
H	£30,000,000 - £69,999,999	0.25%	£30,000,000	£93,991
I	£70,000,000 - £149,999,999	0.23%	£70,000,000	£193,991
J	£150,000,000 - £10,000,000,000	0.08%	£150,000,000	£377,991

*Percentages are expressed as decimals in the calculations (for example, 0.48% = 0.0048).

Find out how the fees are used in the About the fees section.

How to calculate your firm's fee

Use the table and follow these steps:

1. Find your turnover (T) and identify which band it falls into (Column A).
2. Subtract the minimum turnover for that band (Column C) from your turnover (T).
3. Multiply the result by the percentage for that band (Column B).
4. Add the minimum fee for that band (Column D).
5. Round the final fee to the nearest pound:
   • Less than 50p: round down.
   • 50p or more: round up.

Fee calculation examples

Example 1

A firm with a turnover of £0:

(£0 - £0) × 0.0092 + £100 = £100

Example 2

A firm with a turnover of £200,000:

(£200,000 - £150,000) × 0.0053 + £886 = £1,151

Example 3

A firm with a turnover of £800,000:

(£800,000 - £500,000) × 0.0051 + £2,741 = £4,271

Example 4

A firm with a turnover of £200,000,000:

(£200,000,000 - £150,000,000) × 0.0008 + £377,991 = £417,991

Firm fees calculator

All firms that held or received client money between 1 November 2025 and 31 October 2026 must pay £2,170 into the compensation fund, in addition to their periodic fee.

For new firms, the compensation fund fee is payable if the firm intends to hold or receive client money during the 2025/26 practising year. Client money is as defined in the SRA Accounts Rules. If you have queries regarding the definition of client money, please speak to our Professional Ethics helpline.

An additional fee of £200 will be payable for each branch office outside England and Wales.

Read information on fees payable when setting up a new firm.