Barristers who are in their first seven years from the date they first held themselves out as available for accepting fee earning instructions can use the cash basis until that seven-year period comes to an end.
Your catch-up charge is calculated when you stop using the cash basis and begin to compute your profits by reference to fees earned whose amount has been agreed or in respect of which a fee note has been delivered. The one-off additional profit arising from this switch is known as the catch-up charge and this can be spread over 10 years.
When the cash basis comes to an end we can explain how the charge will affect you as well as how it works in relation to your total taxable income.
As we understand the complexities of dealing with issues such as the catch-up charge we are here to help.