Barrister sole trader or limited company

Can a barrister be a sole trader?

Since April 2015 barristers have been able to incorporate, gaining the advantages of trading as a limited company rather than as sole traders. The company must be owned by lawyers, but not necessarily barristers.

Can a barrister trade as a limited company?

If you need expert advice, use the contact form on the right and one of our barrister tax team will be in touch. Many barristers operate as sole traders, which is the default way to trade as a barrister. However, trading as a limited company offers substantial tax advantages and a host of other benefits.

Are barristers self-employed?

For those considering the barrister route, you’re likely aware that the majority of barristers are self-employed, working as sole practitioners in chambers. It’s thought to be a particular characteristic and selling point for future barristers, that they can be their own boss. However, this also means that the employed bar’s not as well known.

Can a barrister fund a debtor?

Barristers can fund debtors and work in progress without paying higher rates of tax. At the risk of losing business asset exemptions, funds could be accumulated for investment. A snapshot of the main differences between trading as Sole Trader or a Limited Company are summarised in the table below:

Can a barrister work for a sole organisation?

Employed barristers... Barristers can also work in an employed capacity working for a sole organisation. They receive a salary from the organisation that employs them and, unlike self-employed barristers, are generally instructed to take on cases.

Should a barrister incorporate?

Watch this space! There can be significant tax advantages for a barrister to consider incorporating. All the profits of the practice will be taxed at 20 per cent, rather than possibly 40, 45 or even effectively 60 per cent (which is the marginal tax rate for a barrister earning a little over £100,000 in a tax year).