Becoming a freelance solicitor in England and Wales: Requirements, benefits and tax considerations of going solo

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Lawyers are increasingly looking for greater flexibility in their working lives. Many have joined the fee-share consultancy models, others would prefer to set up by themselves, but do not necessarily want the regulatory burden of fully recognised law firms.

The Solicitors Regulation Authority (SRA) introduced the “Freelance Solicitor” model to give solicitors a straightforward route to practise independently without setting up a fully authorised law firm. This allows individuals to provide both reserved and non-reserved legal services. If the individual is looking only to provide non-reserved legal services, they need not be regulated by the SRA at all, although such recognition/regulation may add to perceived credibility.

There are certain requirements that must be met in order to be a Freelance Solicitor and provide reserved legal services, such as:

• a minimum of three years post-qualification / registration experience
• practise in your own name not a trading name
• you must not trade through a company, partnership or other entity
• you must be self-employed and not employ anyone
• you must not hold client money, other than for costs or disbursements for which you are liable, or operate a client account
• adequate and appropriate professional indemnity insurance covering all work provided, with evidence maintained of the reasoning for the amount of cover.

What are the advantages of being a Freelance Solicitor?

Greater flexibility and autonomy

Freelance solicitors work entirely on their own, in their own name, directly for clients. This model was deliberately introduced to give solicitors more flexible ways of practising. You can choose your own hours and workload.

Lower overheads and reduced regulatory burden

One of the major benefits is lower operating costs compared to running or joining a regulated law firm.

For non‑reserved legal work, a solicitor operating independently does not need the same level of professional indemnity insurance required of a regulated firm, nor do they need to pay law firm authorisation or practising fees, saving thousands of pounds per year.

Ability to enter the market more easily

The SRA’s reforms were specifically designed to open up the legal services market, allowing solicitors to practise on their own, with the ability to build a bespoke, niche practice, without needing to set up a regulated firm.

Direct client relationships

A freelance solicitor must be engaged directly by clients, with fees paid directly to them.
This direct relationship brings benefits, including more personal client connections, full control over pricing models and increased transparency about services and value

Ability to offer both reserved and non‑reserved work (if eligible)

If the solicitor meets SRA requirements, they may offer reserved legal services as a freelance solicitor, allowing a wider service offering and the ability to maintain a broader practice without firm authorisation

From 18 May 2026, it is currently anticipated that solicitors will be required to register with HMRC if they undertake any work which is classed as ‘tax advice’. The scope of the revenue’s definition is broad and captures a significant proportion of legal work involving HMRC-related submissions.

Personal liability and tax considerations

One key downside to operating as a sole trader is that you have unlimited liability, meaning that your personal assets are at risk should the business incur any claims or debts against it.

You also have less flexibility from a tax perspective, as sole traders are taxed on the entire profits of the business at income tax rates, which are currently a lot higher than corporation tax rates.

Freelance solicitors pay income tax and National Insurance (NI) contributions by way of a self-assessment return covering the tax year, with the tax return and payment due by 31 January the following year. From April 2026, those earning more than £50,000 will need to comply with Making Tax Digital requirements, which changes the way self-employment and property income is reported to HMRC.

Payments on account of income tax are also required, which are advance payments towards the following year’s tax bill. These are made twice a year, and each payment is based on 50% of the prior year's tax bill. For those newly into the self-assessment regime and sole trader system, the first 31 January payment can be quite a surprise, often taking place a long time after starting to trade, as there is a need to balance up tax for the entire prior year and cover half of the tax anticipated for the next year.

Tax is assessed on the net profit – this is gross income less expenses. Expenses that can be claimed must be deemed as having been incurred wholly and exclusively for the purposes of the business. These include:

• Office costs - stationery, phone bills, Wi-Fi, and postage.
• Business-related travel costs, including fuel, parking, train or bus fares. These must be to clients/events etc. If you rent office space, your home-to-office travel would not be an allowable expense.
• PII insurance and other financial costs, for example, bank charges.
• Operating costs such as heating, lighting, and business rates of your office premises. If working from a home office, applicable costs must be prorated, taking into account size of the house and the number of hours the room is in use. Caution is required if trying to claim that a sole area of a home is exclusively for business use 100% of the time. HMRC could challenge whether the full principal private residence relief is available if the house is ever sold, which would restrict the relief from capital gains tax by excluding the business exclusive room/area.
• Advertising or marketing, including website costs.
• Refresher training related to the business. Courses for new skills are not allowable, so if looking to start practising in a new specialism, the training costs will not be allowed as a deduction.
• Professional subscription fees.

Is freelancing right for you?

Choosing the freelance solicitor route can be a smart way to gain flexibility and build a niche practice, but it’s important to consider personal liability, cashflow planning for tax payments, and making sure your record-keeping and allowable expenses are robust. If you’re considering this step, professional support can help you structure your affairs efficiently, budget for tax, and stay compliant—including preparing for digital reporting requirements.