Law firms and solicitors could see their regulatory fees slashed by almost a fifth this year.

However, there is likely to be an increase in contributions to the compensation fund.

Under SRA plans to be put before its board tomorrow, the individual practising certificate fee would fall from £428 to £350.

The amount collected through the firm-based fee would also fall by about 18%, although actual amounts paid by firms will vary depending on turnover.

Firms are likely to provide 60% of the total cost of regulation, with 40% paid by individual solicitors, in line with last year’s proportion.

If approved by the SRA board tomorrow, the new fee level will also need to be passed by the Law Society Council at a meeting on 13 July.

The SRA has also introduced an online renewal process this year.

An online fees calculator is available on its website.

Contributions to the compensation fund are likely to rise from what the SRA described as the ‘exceptionally low’ rates last year.

The costs of the fund will be met on a 50/50 basis by firms and individuals, charged a flat-rate fee.

The level of fee is still to be decided.

Law Society chief executive Desmond Hudson said: ‘The Law Society and the Solicitors Regulation Authority (SRA) are continuing to manage the Law Society Group’s finances in the best interests of the profession.

‘We are targeting a reduction in our annual funding requirement and thus the practising certificate fee of 15%. In doing so, savings will be passed on to the profession.

‘The Law Society Council will set the final figure on 13 July. However, the level of contributions to the compensation fund have not yet been finalised.

‘Central to setting these levels is the need to ensure there is financial stability for the Law Society and the SRA to fulfil their respective statutory duties on behalf of the profession.’

SRA chief executive Antony Townsend said: ‘The SRA and Law Society have worked hard to get costs down and set fees in a way that is fair to both individuals and firms.

‘We are also expecting our online renewal system to speed up the process and make it more efficient for firms.’