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HMRC internal manual

Business Income Manual

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Cash basis: alternative basis: barristers and advocates in early years of practice

S160 ITTOIA 2005; Para 57, Schedule 4 FA 2013

This page applies only to barristers and advocates who used the alternative basis for the tax year 2012-13 and continue to do so until the period of account ending not more than seven years after the start of practice as a barrister. S160 ITTOIA 2005 has now been repealed.

Barristers and advocates are regarded as commencing in practice when they first hold themselves out as available for fee earning work - S160(2) ITTOIA 2005.

Barristers or advocates in practice for a period not more than seven years after commencement of practice may compute their profits on

  • a cash basis, or
  • by reference to fees earned whose amount has been agreed or in respect of which a fee note has been delivered.

Once a particular basis has been adopted it must be applied consistently - S160(4) ITTOIA 2005.

The exemption described above ceases to apply if for any period the barrister or advocate adopts generally accepted accounting practice (GAAP) accounting. In that event S25 ITTOIA 2005 applies to all subsequent periods - S160(5) and (6) ITTOIA.