What makes tax different for barristers
Almost every barrister in independent practice is self-employed from the day they start taking instructions. You are responsible for your own Income Tax, National Insurance and, above the threshold, VAT, and nobody deducts tax from your fees. Three features of life at the Bar make that harder than ordinary self-employment: fees can arrive months after the work is done, chambers costs can be a percentage of what you bill, and the first tax bill in practice usually lands with a payment on account for the following year attached.
This guide covers the 2026/27 tax year (6 April 2026 to 5 April 2027) for barristers in England and Wales. Scotland sets its own Income Tax bands, so an advocate or barrister taxed in Scotland will see different figures.
Pupillage awards and starting practice
HMRC's view is that practice cannot start before the end of the first six months of pupillage, because a pupil cannot accept instructions during that period. The most likely start date is when you can accept briefs and have asked your clerk to obtain them. Register for Self Assessment once you start practising; HMRC's deadline is 5 October after the end of the tax year in which self-employment began, but the Bar Council advises registering as soon as you are generating fees.
The Bar Council and HMRC have agreed two ways to tax pupillage awards, and you choose:
- Option 1: the first six award is tax free, and the award for the second six is taxed as normal professional earnings, with Class 4 National Insurance.
- Option 2: both the first six and second six awards are taxed in the tax year you receive them as miscellaneous income, without Class 4 National Insurance.
The better choice depends on the size of your award and when your accounting year starts. Scholarships from the Inns are exempt from income tax, and study loans are not a deductible business expense.
From the barristers' cash basis to today's rules
Older guidance about barristers' tax is often out of date, because the rules have changed three times.
- The special barristers' basis. Barristers in their first seven years of practice could be taxed on a cash basis, or on fees agreed or billed, instead of full accounting profit. That rule was repealed by Finance Act 2013. Only barristers already using it in 2012/13 could carry on, and only until seven years after they started, so it has now ended for everyone.
- Accruals accounting. Barristers outside that rule had to follow generally accepted accounting practice, which brings in work in progress and unpaid fees. That meant paying tax on work that had not been paid for.
- The cash basis as default. From 2024/25, cash basis is the standard method for sole traders, with the old turnover limits removed. Unless you opt out, you are taxed on fees actually received in the year, less expenses paid. For a barrister waiting months for legal aid or solicitors' payments, that is a real cash flow advantage.
If you have been using traditional accounting and want to switch, or the reverse, adjustments are needed so that no income is taxed twice or missed. Your accountant should calculate these before the change.
A separate reform changed timing. Profits are now taxed for the tax year itself, not your accounting year, with 2023/24 as the transition year. Barristers whose year did not end between 31 March and 5 April had extra transition profit in 2023/24, spread by default over five years to 2027/28, so 2026/27 may still include a slice. An accounting year ending on 31 March or 5 April keeps things simple from here on.
Self-employed or a company
The standard route is a self-employed practising certificate, with professional indemnity insurance through the Bar Mutual Indemnity Fund (BMIF), which the Bar Standards Board (BSB) requires for every self-employed barrister, save for a narrow overseas waiver. In chambers, each tenant is a separate sole trader who shares costs with the others.
A company is possible but is a regulatory step, not just a Companies House form. The BSB authorises entities owned and managed by lawyers with practising certificates, and it can take up to six months to decide an application. A company pays Corporation Tax on profits and cannot use the cash basis, and taking the money out as salary and dividends has its own tax cost, especially since dividend rates rose to 10.75% (basic rate) and 35.75% (higher rate) from 6 April 2026. For most barristers self-employment remains simpler, and the comparison is worth making only on real figures.
Worked example: the first-year payments on account shock
Take a barrister in England whose first full tax year in practice is 2026/27, with £40,000 profit after chambers costs and other expenses and no other income.
| 2026/27 calculation | Amount |
|---|---|
| Profit | £40,000.00 |
| Less personal allowance | £12,570.00 |
| Taxable profit | £27,430.00 |
| Income Tax at 20% on £27,430 | £5,486.00 |
| Class 4 National Insurance at 6% on £27,430 | £1,645.80 |
| Total 2026/27 bill | £7,131.80 |
The return is due by 31 January 2028. Because the bill is over £1,000 and none of it was taxed at source, HMRC also asks for payments on account towards 2027/28, each half of this year's bill.
| Due date | What is due | Amount |
|---|---|---|
| 31 January 2028 | 2026/27 bill plus first payment on account for 2027/28 (£7,131.80 + £3,565.90) | £10,697.70 |
| 31 July 2028 | Second payment on account for 2027/28 | £3,565.90 |
| Total within six months | £14,263.60 |
That is double the year's tax bill within six months, at a stage when fees are often still slow to arrive. If profits rise in 2027/28 a balancing payment follows on 31 January 2029. Setting aside a share of every fee as it comes in, including the VAT element once registered, avoids the scramble. You can read more about payments on account or model your own numbers with our self-employed tax calculator.
Allowable expenses for barristers
An expense is deductible if it is incurred wholly and exclusively for your practice.
| Expense | Allowable? | Notes |
|---|---|---|
| Chambers rent, expenses contributions and clerks' fees | Yes | Whether charged as a flat amount or a percentage of fees |
| Practising certificate fee | Yes | Paid each year to keep practising |
| BMIF professional indemnity insurance | Yes | Compulsory for self-employed barristers |
| Wig, gown and bands | Yes | Not everyday clothing, so outside the clothing bar |
| Dark suits, shirts and shoes for court | No | Mallalieu v Drummond, a barrister's case, confirmed everyday clothing is not allowable even if required by the Bar |
| Travel from chambers to court or conferences | Yes | Actual costs, or 55p a mile for the first 10,000 business miles in 2026/27 and 25p after |
| Travel between home and chambers | No | Newsom v Robertson, even if you also work at home |
| Law reports, textbooks and online research services | Yes | Including practice and accounting software |
| CPD courses and conferences | Yes | Training for a new, unrelated line of business is not |
| Laptop, printer and IT equipment | Yes | Full relief in the year of purchase is usually available; the Annual Investment Allowance is £1 million and does not cover cars |
| Meals during a working day | No | HMRC treats ordinary meals as private |
VAT for barristers
You must register once your taxable turnover for the last 12 months goes over £90,000, or if you expect to pass £90,000 in the next 30 days alone. The Bar Council notes that many chambers encourage tenants to register well before the threshold, and that barristers doing Crown Court criminal legal aid work may need to be registered because their fee claim can include VAT-registered colleagues' fees.
Barristers have their own VAT tax point rule, under regulation 92 of the VAT Regulations 1995. VAT is due at the earliest of:
- receiving payment of the fee, for the amount received
- issuing a VAT invoice, for the amount invoiced
- the day you stop practising.
Fee notes sent to solicitors do not usually become VAT invoices until they are receipted after payment, so in practice you account for VAT when you are paid. Two consequences follow. You do not account for VAT on fees outstanding when you first register. But when you retire or leave practice, a tax point arises on all fees still unpaid, at the rate in force on that day, although HMRC allows the VAT to be paid as those fees are collected.
The Flat Rate Scheme rate for legal services is 14.5%, but most barristers buy few goods, and anyone spending under 2% of turnover or under £1,000 a year on goods pays 16.5% as a limited cost business. That equals 19.8% of net fees, so standard VAT accounting, which lets you reclaim VAT on chambers costs, is usually the better fit.
Key dates for 2026/27
- 5 October 2026: register for Self Assessment if you started practice in 2025/26.
- 31 January 2027: file your 2025/26 return online, pay the balance and your first payment on account for 2026/27.
- 31 July 2027: second payment on account for 2026/27.
- 31 January 2028: 2026/27 return and balancing payment due.
- 7 August, 7 November, 7 February and 7 May: Making Tax Digital for Income Tax quarterly updates, if your self-employed turnover was over £50,000 on your 2024/25 return. From April 2027 the threshold is £30,000, based on your 2025/26 return.
- Each VAT period: return and payment one calendar month and 7 days after the period ends.
How GoForma helps barristers
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