SolicitorCost.com is an independent information resource. We are not a law firm and do not provide legal advice. Costs shown are indicative ranges. Always obtain a written quote.
Home/Fee Structures Explained

Fee Structures

Fixed Fee vs Hourly vs No Win No Fee: How Solicitors Charge (Explained)

Understanding how your solicitor intends to charge is the single most important question to ask before instructing. This guide compares all four models with real examples.

Four Fee Structures at a Glance

StructureHow It WorksTypical ServicesMain Risk
Fixed FeeSet price agreed upfrontConveyancing, wills, simple divorceHidden extras in small print
Hourly RateCharged per 6-minute unit of timeEmployment, complex litigation, familyCosts can escalate without notice
No Win No Fee (CFA)No upfront cost; up to 25% taken from winningsPersonal injury, some employmentSuccess fee + ATE premium reduce your payout
Percentage of Value1-4% of estate or asset valueProbate, some commercial workPoor value for large simple estates

Fixed Fee: What Is (and Isn't) Included

Fixed fees are the most common arrangement for predictable, well-defined work. The key question is: what is the scope? Watch for:

Disbursements excluded

Fixed fees almost never include disbursements (court fees, Land Registry fees, search fees). These are additional to the solicitor's fee and can be substantial.

'Additional work' clauses

If the matter becomes more complex than anticipated, many firms have an 'additional work' clause allowing extra charges. Ask what would trigger this.

VAT may not be included

Check whether the quoted fee is inclusive or exclusive of VAT (20%). £1,000 exclusive of VAT = £1,200 total.

Scope clearly defined

The best fixed fee quotes specify exactly what work is included. If the scope is vague, push back and get clarity before signing.

Hourly Rate: How Time Recording Works

Solicitors bill time in 6-minute units (one tenth of an hour). Each unit of time is recorded against your matter:

ActivityTypical Time UnitsCost at £250/hr
Short phone call (3 mins)1 unit (6 mins)£25
Reading a short letter1-2 units£25-£50
Drafting a standard letter3-5 units£75-£125
Reviewing a contract (5 pages)5-8 units£125-£200
Attending a 30-minute meeting5 units£125
Preparing for a 1-day hearing15-20 units£375-£500
Tips for Managing Hourly Costs
  • Agree a cost cap upfront -- require approval before costs exceed a stated limit
  • Ask for monthly billing so you see costs building before they escalate
  • Send clear, organised information to minimise chargeable reading time
  • Use email for routine updates rather than calling (calls can be billed in 6-minute units)
  • Ask for a cost estimate at the start and review it at each significant stage

Your Rights on Solicitor Costs

The SRA (Solicitors Regulation Authority) requires solicitors to provide clear cost information. You have the right to:

✓A cost estimate at the outset of the matter
✓Notification if the estimate is likely to be exceeded
✓A detailed itemised bill on request
✓Complain to the Legal Ombudsman if costs are excessive (time limit: 1 year from the bill)
✓Apply for a Solicitors Act assessment by the court if you dispute the bill

Fee Structure FAQs

Can I switch fee structures mid-case?
In theory yes, but in practice it is difficult. If your case started on an hourly basis and becomes more complex, you can discuss a fixed cap with your solicitor. If it started on a fixed fee and the scope expanded significantly, the solicitor may apply additional charges under any 'additional work' clause. Always read the terms of your engagement letter carefully before signing.
What if the fixed fee work takes longer than expected?
A fixed fee should cover the work as agreed, regardless of how long it takes. However, many fixed fee arrangements include carve-outs for unforeseen complexity. If your solicitor wants to charge more, they must tell you in advance. If the additional work was within the original scope, you can challenge the extra charge.
What does 'plus VAT and disbursements' mean?
VAT is 20% on solicitor fees. Disbursements are third-party costs paid on your behalf (court fees, search fees, Land Registry fees). When you see a quote of £1,000 plus VAT and disbursements, the actual cost will be £1,200 (fee + VAT) plus whatever the disbursements total. Always ask for an all-in estimate before comparing quotes.
Can I cap my hourly costs?
Yes. You have the right to ask your solicitor to set a cost ceiling above which they must seek your approval before doing further work. Some solicitors offer this voluntarily; others need to be asked. It does not guarantee the total will be at or below the cap, but it means you will not be surprised by a bill far above your expectations. Confirm the cost cap in writing.
All Solicitor CostsHourly Rates by RegionCFA Detail (Personal Injury)Percentage Charging (Probate)