Finance for Barristers & Chambers

Chambers can fund premises fit-out, technology and working capital, borrowing through a service company, LLP or its members depending on how it is constituted, while individual barristers fund their own tax, VAT and contributions. Professional Practice Loans, a specialist whole-of-market broker, structures the request and approaches suitable lenders. Pupillage awards are funded separately by chambers and the Inns of Court.

Some lenders will take outstanding fees into account, but most barrister borrowing is assessed on the individual's earnings history, fee record and credit profile rather than secured against specific fees. Publicly funded work, where payment can be slow, is familiar to specialist lenders. We look at your practice and explain at the outset how any borrowing would be treated.

Barristers can face self-assessment payments in January and July on income that is billed but not received. A tax loan can spread the liability, usually assessed on your earnings history and outstanding fees. It is also worth checking with your accountant whether an HMRC Time to Pay arrangement is appropriate. We can search the market for tax funding.

It can be. Borrowing of £25,000 or less by sole traders and small partnerships can be regulated consumer credit, and most barristers practise as sole traders. We will say at the outset if that applies and how it affects the process. Larger borrowing for business purposes can be treated differently, and we explain which applies to you.

Often, yes. Chambers rent and contributions, practising certificate fees, insurance and other professional costs can be funded through a working capital facility, so they do not all fall at once while fees are outstanding. Lenders look at your earnings history and fee record. We search the market for options suited to self-employed barristers.

Yes. Chambers operating through a company or LLP can borrow for premises, refurbishment, technology and working capital. That borrowing is assessed separately from borrowing by individual members, and lenders will look at the chambers' accounts, members' contributions and the lease. We review the structure before approaching lenders.

Yes. Self-employed barristers borrow for tax and VAT on outstanding fees, chambers rent and contributions, practising costs and working capital. Lenders who understand the Bar look at fee history and the aged fee list. Borrowing of £25,000 or less can be regulated consumer credit, and we explain at the outset how that applies. You can get instant quotes to compare options.

Look for a whole-of-market broker that works with professional practices and with lenders who assess the Bar on fee history rather than an uneven bank balance. That is the work we do: we look at your fees billed and unpaid, then search the market for lenders suited to your practice.

Under HMRC's rules for barristers the tax point is the earliest of receiving the fee, issuing a VAT invoice or ceasing to practise, so VAT is normally paid when fees are received. Registration is required once taxable turnover passes £90,000 in a rolling 12 months. Professional Practice Loans, a whole-of-market broker for the professions, arranges VAT funding to spread a large quarter.

VAT becomes due on all outstanding fees on the day you cease to practise. HMRC can allow you to defer it until each fee is received or invoiced, charged at the rate in force when you stopped. HMRC explains this in VAT for barristers and advocates.

Yes, although choice widens once there are tax returns to show. Lenders look at fee notes, the aged list of fees billed but unpaid, chambers and the type of work. Borrowing of £25,000 or less by a sole trader can be regulated consumer credit, and we explain at the outset how any loan would be treated. You can get instant quotes to compare options.

Once a Self Assessment bill reaches £1,000, the balance for the year just ended and the first payment on account for the next year are both due on 31 January, each advance payment usually being half the previous year's bill. A growing practice can owe close to one and a half years of tax at once. See tax funding for ways to spread it.