Legal & Law Firm Accounting
Accountancy Made Simple from only £89/month
Fee income that arrives months after the work, a tax year that no longer matches your accounting period, and Making Tax Digital landing in April 2026. Caroola gives barristers, solicitors and law firms a dedicated accountant who already understands how legal practice is taxed, on a fixed monthly fee.
Everything Legal Firms Need
Legal income rarely arrives when the work is done. Fees can sit unpaid for months, then several land at once, and the tax bill arrives whether or not the payment did.
Specialist Legal Accounting Support
Our legal accounting services are provided by accountants who understand how legal practice actually works, not a generic small business template.
You’ll get your own dedicated accountant, not a shared inbox or a rotating support team.
Support is unlimited, and quarterly check-ins mean your accountant is looking at your position throughout the year, not once, twelve months after the fact.
- Cloud accounting software included
- Annual accounts, prepared and filed
- Self Assessment, Partnership, or Corporation Tax returns
- Advice on which accounting basis suits your practice
- VAT registration and returns
- Tax planning reviewed every quarter
- Support switching from another provider
Who are these services for?
At Caroola, we work with legal practices of every structure, sole traders, partnerships, LLPs and limited companies, whatever area of law you work in.
That covers barristers in independent practice, solicitors practising in their own name, consultant solicitors, locums and legal interims, as well as established firms with staff on the payroll. If your firm holds client money and needs an SRA Accountant’s Report, that’s a separate specialist engagement and we’ll tell you so rather than take it on.
What Makes Legal Accounting Different?
An employed solicitor is taxed through PAYE and never has to think about it. The moment you practise on your own account, the timing of your income, the basis you account on and the deadlines you answer to all change at once.
Get the accounting basis wrong, and you can end up paying tax on fees you haven’t been paid.
Accounting basis:
The cash basis became the default for sole traders in April 2024, with the accruals basis now something you elect into.
Basis period reform:
Accounts must align to the tax year ending 5 April, and any resulting transition profit can be spread across five tax years.
Making Tax Digital:
From April 2026, self-employed legal professionals over the threshold must keep digital records and file quarterly.
Practice expenses:
Chambers rent and fees, practising certificates, professional indemnity insurance, subscriptions and travel to court all need treating correctly.
Partnership and LLP profits:
Profit shares are taxed on the individual partners, so the firm's accounts and each partner's tax position have to work together.
Why Choose Caroola for Legal Accounting?
Built for Uneven Income
Advice on setting aside the right amount as fees are received, not guessing at year end.
Fixed monthly Fees
One price, agreed upfront, that won't creep up after a good year.
Your Own Accountant
Work with one dedicated accountant who understands legal practice, not just employment.
No Hidden Costs
Clear pricing, whatever area of law you work in.
Grows With Your Practice
From your first six to silk, or from sole practice to a firm with staff, your package adapts.
How Much Does Legal Accounting Cost?
Your core accounting is one fixed fee, whatever the size of your practice.
Packages start at £28 + VAT a month for the self-employed and £89 + VAT a month for limited companies, with partnerships and LLPs priced around your setup. If you only need quarterly Making Tax Digital submissions rather than full accountancy support, that starts at £14 + VAT a month.
Payroll for employees, bookkeeping, or management accounts are priced separately or included with an upgraded package, and always agreed with you first.
Sole Trader
- Self Assessment filing
- Bookkeeping software
- Dedicated accountant
- MTD ITSA software
- Corporation Tax & VAT filing
- Annual Accounts
- Real-time tax insights
Limited Company
- Self Assessment filing
- Bookkeeping software
- Dedicated accountant
- MTD software
- Corporation Tax & VAT filing
- Annual Accounts
- Real-time tax insights
Partnerships & LLP
- Self Assessment filing
- Bookkeeping software
- Dedicated accountant
- MTD ITSA software
- Corporation Tax & VAT filing
- Annual Accounts
- Real-time tax insights
Speak to an Experienced Legal Accountant Today
Ready to work together or interested in learning more? Get in touch with the team to start a conversation.
FAQs
- Do You Work With Barristers as Well as Solicitors?
Yes. We work with barristers in independent practice, solicitors practising in their own name, consultant solicitors, locums, legal interims and established firms. The right approach differs between them, which is why you get an accountant rather than a form.
- Do You Handle Accounting for Law Firms as Well as Individuals?
Yes. We prepare accounts and tax returns for sole practices, partnerships, LLPs and incorporated firms, and handle payroll where you have staff. If your firm holds client money, the SRA Accountant’s Report is a separate specialist engagement and we’ll say so upfront.
- Should I Use the Cash Basis or the Accruals Basis?
Since April 2024 the cash basis is the default for sole traders, and accruals is something you elect into. The cash basis usually suits practices where fees are paid slowly, because you’re taxed when you’re paid rather than when you invoice. We’ll look at your fee patterns and advise on which fits.
- What Is the Catch-Up Charge and Will It Affect Me?
If your accounting period didn’t already end on 5 April, basis period reform will have created a one-off transition profit. That charge can be spread across five tax years rather than falling in one. If it applies to you, we’ll calculate it and plan for it.
- Can I Claim My Chambers Fees and Practising Certificate?
In most cases, yes. Chambers rent and fees, your practising certificate, professional indemnity insurance and relevant professional subscriptions are usually allowable. We’ll review your expenses and tell you what qualifies.
- Can I Switch to Caroola Part-Way Through the Year?
Yes. No need to wait for year end. We manage the handover with your current provider.
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