Introduction to Pupillage Awards for Pupil Barristers: A Guide to Chambers, Funds and Scholarships

Understanding the Importance of Pupillage Awards in the Legal Sector

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Embarking on a career as a barrister is a challenging journey. The formative years of your career are a steep learning curve involving a mixture of academic study and on-the-job learning. Despite their difficulty, this period is fundamental in sharpening your knowledge and gaining experience that you will carry with you for the rest of your time called to the bar.

The pupillage is a period of compulsory vocational training that serves as a stepping stone to becoming a practising barrister. This article guides you through the financial details of pupillage awards, providing insights into the options available for funding and financial planning during your pupillage year(s).

Pupillage Awards: What Are They?

Pupillage awards are financial grants provided to pupil barristers during their pupillage, which usually lasts for 12 months. These awards come either from the chamber where the pupil is training or from one of the Inns of Court, which are the professional associations for barristers in England and Wales. The awards are designed to offer financial support, helping pupils manage living and training expenses.

Types of Awards: Inns of Court vs. Chamber Awards

Pupillage awards can be categorised into two types:

• Inns of Court Awards: These are generally tax-free and can be considered scholarships.
• Chamber Awards: These are given by the court chambers where the pupil is undertaking their pupillage. The tax treatment of these awards has changed over the years, as they are now considered income rather than scholarships.

Tax Implications for Pupil Barristers: How to Handle Your Pupillage Award

Taxation of pupillage awards is a complex area, and it is crucial to understand how to treat these funds. The tax treatment can vary depending on the source of the award and the length of your pupillage. There are two primary options for tax treatment:

1. Option 1: The award for the first six months is tax-free, while the award for the second six months is considered as normal professional earnings.
2. Option 2: Both the awards for the first and second six months are taxable as income.

Making Your Decision: What to Consider?

The decision of which option to choose depends on several factors, such as the size of the award and other income sources. For smaller awards, Option 2 may be preferable, as the tax liability may be negligible. However, for more substantial awards, the decision is less straightforward and could benefit from professional advice. Use the contact form on the right and one of our barrister tax experts will be in touch.