Specialist Accountant for Barristers
You focus on winning your cases - we'll take care of your accounts.
Financial accounting for barristers is often complex, with numerous matters which relate solely to your profession due to the variations and tax requirements.
RWB Chartered Accountants specialise in giving accounting, tax support and guidance specific to barristers.
RWB help Barristers with:
How the catch-up charge works
How contingency fees affect your accounts
How work in progress is taxable
Which items of court clothing are allowable tax deductions
How much you could claim in your accounts for working from home
How much interest on a loan you may be able to claim as a deduction in your accounts
How much to save to pay your future tax bills (especially in early days of practice)
How you can pay into your pension scheme
How to claim for your motor expenses
Whether or not an 'Offset mortgage' is advantageous
Our Accounts package
For £125 + VAT per month you get everything you need, with no hidden extras.
As we specialise in accounts for barristers, we understand how time pressured you are so we like to keep things simple. We offer a consistent, secure high-quality service, and our package includes everything you need for a secure and efficient accounts service:
Hubdoc – you can send receipts and invoices straight from your phone.
Xero software subscription.
Preparation and submission of you Personal Tax Return.
Preparation and submission of quarterly MTD Value Added Tax (VAT) return.
Processing your receipts and invoices, liaising directly with your Chambers.
Production of the non-statutory annual financial statements.
We give you consistent, high-quality service, so you can focus on your practice while we handle the numbers.
Why choose RWB?
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We have decades of experience in helping clients with a full suite of accountancy services. Our diverse and dedicated team specialise in everything from Personal Tax and Corporate Accounts to Inheritance Tax Planning and Forensic Accounting.
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We are governed by the ICAEW, which has the highest standards of integrity and ethics.
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We have a rigorous protocol: all completed work is checked by your dedicated client manager and then again by one of our directors
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Our meticulous procedures significantly reduce the risk of anything being missed or completed incorrectly.
What our clients say
“The whole team is very efficient and responds to any questions or queries immediately. We are very happy with the service.”
— Mrinal
“This is my 41st year as a client of RWB or its predecessors. The service has always been superb and, even better, friendly.”
— James
“Nick Bonnello and the team have always been on hand to offer excellent advice and guidance at every step of the way. I can’t recommend them enough!”
— Dan
Contact us
Would you like to learn more? Our team are happy to help!
FAQs
What is Cash Basis Accounting, and does it apply to barristers?
As of April 6, 2024, cash basis accounting is the default method for all unincorporated businesses, including barristers, regardless of years in practice. However, barristers may still opt for traditional accrual accounting if it better suits their financial needs.
What VAT considerations should barristers be aware of?
Barristers may be eligible for the VAT Flat Rate Scheme (FRS) if their taxable turnover is £150,000 or less. However, those classified as 'limited cost traders' (spending less than 2% of turnover or under £1,000 per year on goods) must apply a higher flat rate of 16.5%.
What should a barrister consider when choosing between a Sole Trader and a Limited Company?
Consider factors like higher costs for Limited Companies, potential restrictions by Chambers, uncertain future tax rates, and the possibility of tax benefits on retained profits.
What are the legal and financial implications between Sole Traders and Limited Companies?
Sole Traders bear personal liability, whereas Limited Companies offer limited liability as separate legal entities. Sole Traders face personal tax, while Limited Companies pay corporation tax.
How does profit extraction differ for Sole Traders and Limited Companies?
Sole Traders keep all profits directly, while Limited Companies typically pay through a mix of salary and dividends, with specific tax rates on dividends.
How does Basis Period Reform affect barristers?
From the 2024/25 tax year, all sole traders and partnerships must report profits in line with the tax year (April 6 to April 5), regardless of their chosen accounting year-end. This reform simplifies tax reporting but may have transitional tax implications.
What expenses are deductible for tax purposes?
Certain expenses are deductible, but tax treatment varies depending on the type:
Motoring costs – Can be claimed based on mileage or actual costs.
Telephone (mobile and landline) – If used for business purposes.
Court clothing – Treated differently for VAT and Income Tax purposes.
How does my choice of year-end impact my tax liability?
Selecting the right year-end can affect tax liabilities due to Basis Period Reform and potential overlaps, which may create a temporary 'tax time bomb.' Strategic planning can help mitigate unexpected tax burdens.
What should barristers know about national insurance and pensions?
Limited Company directors pay Employers’ and Employees’ National Insurance and can contribute to pensions with tax relief. Sole Traders’ contributions have different limits and upcoming changes.
How does estate planning impact income tax?
Tax-efficient wills and estate planning can affect income tax liabilities, particularly for barristers with significant assets. Planning ahead can help mitigate exposure to Inheritance Tax (IHT) and ensure financial security for beneficiaries.
How can I ensure my Chambers is financially future-proof?
To secure the financial future of your Chambers, it's crucial to strike a balance between your legal pursuits and financial well-being. Here are key strategies to ensure long-term stability:
Implement robust and efficient financial systems.
Stay ahead by complying with changing tax regulations.
Proactively plan for sustainable growth.
What are the VAT considerations when switching to a Limited Company?
Barristers can transfer an existing VAT number or apply for a new one, taking advantage of opportunities such as the Flat Rate Scheme and potential discounts.
Are there investment opportunities with Limited Companies?
Yes, Limited Companies may offer investment opportunities by retaining surplus profits, potentially benefiting shareholders.