From 6 April 2026, the way self-employed barristers report their income will undergo a major transformation under Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA). This represents the biggest change to barristers’ tax compliance since the introduction of Self-Assessment in 1996/97, requiring digital record-keeping and quarterly submissions for those over certain income thresholds.
Who will be affected?
MTD for Income Tax is being phased in according to gross income, not profit. Barristers will be mandated to comply if their combined self-employment and property income exceeds £50,000 from April 2026.
What will barristers need to do?
Under the new regime, affected barristers must:
Maintain digital records of income and expenses
Submit quarterly updates to HMRC (due 30 days after each income tax quarter ends)
File an End of Period Statement (EOPS)
Complete a Final Declaration at year-end
Why MTD is particularly challenging for barristers
A barrister’s income pattern is unlike that of most other professions. Delays between performing work, issuing a fee note, and receiving payment create complexities in deciding whether to use the cash basis or accruals basis for MTD submissions.
The cash basis: Now the default for most unincorporated businesses, this records income when it’s actually received.
The accruals basis: Records income when earned, which can require tracking work-in-progress and long-running cases. This creates practical complications for barristers, especially those handling lengthy litigation, “no-win-no-fee” work, or matters with long settlement cycles.
How Armstrong Watson can help
Transitioning to MTD can feel daunting. Armstrong Watson can support barristers with both the registration process and ongoing quarterly submissions, ensuring compliance is maintained seamlessly and without added stress.
Whether you need help choosing suitable digital software, understanding your reporting obligations, or managing the full submission process, Armstrong Watson can guide you through every step.
If you would like further information or assistance to prepare for Making Tax Digital, please get in touch. Call 0808 144 5575 or email help@armstrongwatson.co.uk.
