16 April 2020
Barristers – Do you know how much of your income you can actually spend on yourself after Tax?
Barrister accounts are not straightforward.. they require specialist accountancy skills due to the specific nature of tax requirements.
Read on to discover how our 3 tailored package solutions can help you..
Barrister Accounting Packages
| Fees Received | 480,000.00 | 320,000.40 | 240,000.00 | 192,000.00 | 159,999.60 | 128,000.40 | 96,000.00 | 63,999.60 | ||
| Income | 400,000.00 | 266,667.00 | 200,000.00 | 160,000.00 | 133,333.00 | 106,667.00 | 80,000.00 | 53,333.00 | ||
| Expenses | 25% | 100,000.00 | 66,667.00 | 50,000.00 | 40,000.00 | 33,333.00 | 26,667.00 | 20,000.00 | 13,333.00 | |
| Profit | 300,000.00 | 200,000.00 | 150,000.00 | 120,000.00 | 100,000.00 | 80,000.00 | 60,000.00 | 40,000.00 | ||
| Personal Allowance | - | - | - | 2,500.00 | 12,500.00 | 12,500.00 | 12,500.00 | 12,500.00 | ||
| Taxable Income | 300,000.00 | 200,000.00 | 150,000.00 | 117,500.00 | 87,500.00 | 67,500.00 | 47,500.00 | 27,500.00 | ||
| Income Tax | ||||||||||
| @20% | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 5,500.00 | ||
| @40% | 45,000.00 | 45,000.00 | 45,000.00 | 32,000.00 | 20,000.00 | 12,000.00 | 4,000.00 | - | ||
| @45% | 67,500.00 | 22,500.00 | - | - | - | - | - | - | ||
| National Insurance | ||||||||||
| Class 2 | 158.60 | 158.60 | 158.60 | 158.60 | 158.60 | 158.60 | 158.60 | 158.60 | ||
| Class 4 | 8,645.00 | 6,645.00 | 5,645.00 | 5,045.00 | 4,395.00 | 4,245.00 | 3,845.00 | 2,745.00 | ||
| Total Tax Payable | 128,803.60 | 81,803.60 | 58,303.60 | 44,703.60 | 32,053.60 | 23,903.60 | 15,503.60 | 8,403.60 | ||
| % of gross received | 26.83% | 25.56% | 24.29% | 23.28% | 20.03% | 18.67% | 16.15% | 13.13% | ||
| Est. VAT Payable | 87.00% | 69,600.00 | 46,400.06 | 34,800.00 | 27,840.00 | 23,199.94 | 18,560.06 | 13,920.00 | 9,279.94 | |
| Total TAX | 198,403.60 | 128,203.66 | 93,103.60 | 72,543.60 | 55,253.54 | 42,463.66 | 29,423.60 | 17,683.54 | ||
| % of gross received | 41.33% | 40.06% | 38.79% | 37.78% | 34.53% | 33.17% | 30.65% | 27.63% |
Further advice?
For our full guide on Barrister’s accounts and taxation, you can download our free Barristers’ booklet at https://rwbca.co.uk/our-services/barristers.
OR, contact our Director, Nick Bonnello, who specialises in Barrister accounts and taxation on 0115 964 8860 or nickb@rwbca.co.uk to arrange your free consultation.
The views provided in this article are for general information purposes only. Nothing in this article represents advice of any nature whatsoever. Accordingly, RWB CA Limited does not accept any liability or responsibility for the information contained in this article or any decision or other action that may be taken in reliance upon the information contained within it. RWB CA Limited accepts no responsibility for any errors of fact or opinion and assumes no obligation to provide you with any changes to its assumptions.