Authorisation to Practise Income FAQs

Modified on Mon, 19 Feb, 2024 at 10:02 AM

Here are some of our most frequently asked questions regarding the Income Declaration for the Authorisation to Practise (AtP) process. If you find your question has not been answered below, please contact our Barrister Records Team who deal with barristers’ queries regarding the AtP process.

Please contact us if you have any queries about any of this information.

TABLE OF CONTENTS

1. I am not practising as a barrister but wish to maintain my practising certificate. What should I do?
2. What items should I include and exclude in my income as an employed barrister?
3. As a Self-employed barrister, what income should I include or exclude?
4. Should I include devilling as part of my income?
5. I sit as a part-time judge; do I include the fee income I receive from this as part of my declaration?
6. If I have been paid in a foreign currency, how do I declare the income?
7. What is the difference between net and gross income?
8. What about fee invoices not yet paid?
9. What evidence do I need to submit with my PCF application?
10. What can I use to verify my income as an employed barrister?
11. Why am I being asked for my actual income rather than just the band?
12. Is VAT charged within the cost of the BRF?

1. I am not practising as a barrister but wish to maintain my practising certificate. What should I do?

You will need to complete the Authorisation to Practise renewal via MyBar.

If your status is as a self-employed barrister you must use the same gross fee income figure you have or will be providing to BMIF for your 2024 renewal, less any proportion attributed to acting as an Umpire, Mediator or Arbitrator (entered against Code O from the BMIF form). For clarity this will be the total fees you received (your Gross Fee Income) from practice at the Bar (without VAT) during the last calendar year, 1 January 2023 to 31 December 2023. If you have been asked by BMIF to provide projected income for their 2024 renewal, do not include any projected income for the purposes of our income declaration. You are only required to provide your actual gross fee income as set out above.

If your status is as an employed barrister, you must declare the income band appropriate to your gross earnings for the tax year ending 5 April 2023. Gross earnings would be taken before any salary sacrifice or deduction of pension contributions.

If your status is as a dual capacity barrister i.e. as both an employed and a self-employed barrister, then you should aggregate your gross income under each separate status according to the rules for that status, as above.

If this is your first practising certificate renewal or you have no earnings in the relevant income periods as above, or you are on or returning from parental leave then you should choose band 1.

2. What items should I include and exclude in my income as an employed barrister?

Do include the following:

Gross earnings before salary sacrifice or pension deductions from employment as a barrister or provider of reserved legal services;
Earnings from partnerships & directorships where you are providing the same;
If you have left employment through redundancy you should include your pay/holiday pay in lieu of notice (but not redundancy or ex gratia payments);
Bonuses earned, and cash allowances (eg car allowance)
Normal and enhanced Maternity (but exclude statutory maternity pay), Paternity Pay.

Please exclude:

Pensions paid to you;
Any state benefits you receive;
Statutory maternity pay;
Any income that does not arise from earnings as a barrister;
Reimbursed expenses;
Investment income and interest earned (e.g. dividends, bank account interest, rental income);
Additional benefits received in employment (for example, health insurance);
Redundancy and ex gratia payments.

3. As a Self-employed barrister, what income should I include or exclude?

You should use the same gross fee income declared to BMIF this year, 2024. However, you must deduct from this any fees earned as an Arbitrator, Mediator or Umpire.

If you have been asked by BMIF to provide projected income for their 2024 renewal, do not include any projected income for the purposes of our declaration. You are only required to provide your actual gross fee income.

4. Should I include devilling as part of my income?

You should include your devilling income received as part of your total income. We would expect the senior barristers who employ devilling and make payments to juniors, to deduct that part of the income that is paid to the juniors from their gross fee income computation.

5. I sit as a part-time judge; do I include the fee income I receive from this as part of my declaration?

No. Any income you declare, should be on your practise as a barrister only. Therefore, you should not include any income from sitting as a Judge in your declaration.

6. If I have been paid in a foreign currency, how do I declare the income?

For an employed barrister: if you have no equivalent UK income statement, then you should use the earnings in the currency translated into sterling at the exchange rate on 31 March 2023. For a self-employed barrister: you should use the information you provided to BMIF in 2024.

7. What is the difference between net and gross income?

Gross fee income is before deductions of expenses but excluding VAT. Net fee income would be after deductions of expenses or chambers fees.

8. What about fee invoices not yet paid?

Only include in your income submission fees where you have been paid, following

the same approach taken with your BMIF return for this year, 2024.

9. What evidence do I need to submit with my PCF application?

None normally. You will only need to submit evidence of income if chosen for spot checking.

10. What can I use to verify my income as an employed barrister?

We will consider a variety of different documentation types as evidence. The following list is not exhaustive and includes: the official tax documents such as P60 or P45, a contract of employment or letter from your employer. If you have other earnings, the evidence you could use would be similar to that that HMRC might need to validate gross income.

Alternative documentation may be used for those not employed in the UK including statements of earnings from partnerships, accountants, or employers.

11. Why am I being asked for my actual income rather than just the band?

The actual figure helps us better understand what is happening in the profession and helps make up more accurate forecasts of future income.

12. Is VAT charged within the cost of the BRF?

The BRF includes VAT at 20%; it has two elements, Vatable and Zero-Rated – examples given below.

VAT analysis is provided on both invoices and receipts issued