Contracting as Solicitor

[swamp]

Mrs Swamp wants to contract as a solicitor through MyCo Ltd.

She would provide (qualified) legal services to Big Multi-National End Client at £X day rate.

Would MyCo Ltd need professional indemnity insurance? More specifically, would MyCo need to become in effect, a law firm? The SRA specify that solicitors require £3m PI insurance, and this (presumably) needs to be maintained for a number of years after the contract has expired. Note I'm worried more about compliance with SRA and/or Mrs Swamp being in trouble with SRA, rather than any theoretical liability here.

I've phoned some insurance companies, but the best I've got is "fill out a big form and we'll get back to you".

Has anyone here got any knowledge or experience of a solicitor being a contractor/freelancer?

Many thanks.

[Alan @ BroomeAffinity]

I've never heard of a solicitor contracting via a limited company but I do recall from way back that there are rules and rules and rules for the structure of a legal practice which I guess is what this will be. I think one of these prohibit one client forming more than x% of total fee income. I've a feeling this could be very problematic.

[Alan @ BroomeAffinity]

http://m.accountingweb.co.uk/anyansw...rs-incorporate

[northernladuk]

Have you asked your solicitor?

[Jessica@WhiteFieldTax]

Detail

My partner was/is a solicitor and contracted via PSC latterly until retirement.

It will depend on whether your partner is practising or not, and this will need a detailed assessment of the Law Society/SRA rules.

If they are not then PI isn't necessary, save to cover risks between your partner and their client which will be dictated by commercial issues not regulatory ones.

Generally an employed solicitor in a practice won't have PI as they will be covered by firms PI. There is nothing to say they same couldn't apply to a locus/contractor, although it weakens to a degree any IR35 position. In house corporate lawyer would be unlikely to have PI.

Devil is in the detail.

[Jessica@WhiteFieldTax]

PS I don't think "provide (qualified) legal services" is determinative. Unless your partner is public facing, I suspect they will be outside practising regulations, but check SRA rule book.

[Sausage Surprise]

I'd suggest she get her own ltd - paperwork nightmare putting her through yours.