Tax and the Bar

There are two main areas where the taxation of barristers differs from that of other professions. The two specific rules are both statutory concessions to reflect the facts that barristers cannot sue for their fees and that for many barristers fees can take a long time coming.

While many aspects of their taxation are equally applicable to advocates in Scotland and barristers in Northern Ireland this article has been written with the England and Wales Bar in mind. For a more detailed analysis of the tax position of a barrister readers should refer to the 126-page document published by the Bar Council (available on its website at www.barcouncil.org.uk).

Income tax

Until the enactment of section 42 Finance Act 1998 most barristers probably took advantage of the cash basis when submitting accounts to the Inland Revenue. Others may have adopted for a...