Last updated: 21 February 2026
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. It marks a watershed moment for self-employed barristers: Making Tax Digital for Income Tax becomes compulsory for anyone with gross self-employment income above £50,000. This guide sets out the tax rates, allowances, deadlines, and planning opportunities that matter most for barristers in practice.
Income Tax Bands and Rates: 2026/27
Income tax thresholds remain frozen for 2026/27. With no inflationary uplift since 2021/22, fiscal drag continues to pull more barristers into higher rate bands each year:
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The 60% trap
The personal allowance tapers by £1 for every £2 of income above £100,000, disappearing entirely at £125,140. This creates an effective 60% marginal tax rate in that band. Barristers whose income falls in this range should consider pension contributions or Gift Aid donations to bring adjusted net income below £100,000 and reclaim the full personal allowance.
National Insurance Contributions (NICs)
Class 2 NICs were abolished from 6 April 2024. Self-employed barristers now pay only Class 4 NICs:
| Profits band | Class 4 rate |
|---|---|
| £12,570 – £50,270 | 6% |
| Above £50,270 | 2% |
National Insurance credits for state pension purposes are now built through Class 4 contributions. There is no separate flat-rate weekly charge.
Pension Annual Allowance
Pension contributions remain the single most effective tax planning tool for barristers. The key figures for 2026/27:
- Annual allowance: £60,000 (total of personal and any employer contributions)
- Tax relief: at your marginal rate – 20% basic, 40% higher, 45% additional
- Tapered annual allowance: applies where adjusted income exceeds £260,000, reducing the allowance down to a minimum of £10,000
- Carry forward: unused allowances from the three preceding tax years (2023/24, 2024/25, 2025/26) can be carried forward, provided you were a member of a registered pension scheme in those years
- Lifetime allowance: abolished from 6 April 2024 – no cap on total pension fund value
A higher-rate taxpayer contributing £40,000 to a pension saves £16,000 in income tax. If that contribution also brings income below the £100,000 threshold, the restored personal allowance delivers further savings. Read more about pension planning for barristers.
ISA and Savings Allowances
| Allowance | 2026/27 amount |
|---|---|
| ISA allowance | £20,000 per adult |
| Junior ISA | £9,000 |
| Dividend allowance | £500 |
| Personal savings allowance (basic rate) | £1,000 |
| Personal savings allowance (higher rate) | £500 |
| Personal savings allowance (additional rate) | £0 |
If you are building reserves outside your pension, maximising ISA contributions each year shelters investment returns from both income tax and capital gains tax permanently.
Making Tax Digital for Income Tax (MTD ITSA)
From 6 April 2026, barristers with gross self-employment income above £50,000 must comply with MTD for Income Tax. The regime requires:
- Digital record keeping: all income and expenses recorded in MTD-compatible software from the start of the tax year
- Quarterly updates: summary income and expense figures submitted to HMRC four times per year
- End of period statement (EOPS): a year-end reconciliation after 5 April
- Final declaration: replaces the traditional self-assessment tax return, confirming your total income and tax liability
Barristers earning between £30,000 and £50,000 will be brought into MTD from April 2027. Those below £30,000 are not yet in scope.
If you have not set up compliant software, act now – the first quarterly update for 2026/27 is due by 7 August 2026. Get in touch and we will manage the transition.
VAT Registration
The VAT registration threshold is £90,000 (from 1 April 2024). You must register if your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect it to exceed £90,000 in the next 30 days alone.
Most barristers in established practice will be VAT registered. The flat rate scheme may be worth considering: barristers qualify for the 14.5% flat rate category, which can produce a modest saving depending on your expense profile. However, the limited cost trader rules (16.5% flat rate) may apply if your goods purchases are below 2% of turnover.
Allowable Expenses for Barristers
Keeping thorough records of legitimate business expenses reduces your taxable profit directly. Common deductions for barristers include:
- Chambers rent and desk fees
- Clerk fees and commissions
- Practising certificate and Bar Standards Board fees
- Professional indemnity insurance
- Law books, journals, Westlaw/LexisNexis subscriptions
- Robes, wigs, wing collars, and bands
- Travel between courts and conferences with solicitors (not ordinary commuting to chambers)
- Continuing professional development (CPD) courses and conferences
- Accountancy fees
- Subscriptions to the Bar Council, specialist Bar associations, and the Inns of Court
- Use of home as office (apportioned on a reasonable basis)
Under MTD, digital records of all expenses must be maintained from April 2026. At Jack Ross, we provide a digital inbox – photograph or forward receipts and we categorise everything for you. Read our detailed guide on allowable tax deductions for barristers.
Worked Example: Junior Barrister Earning £80,000
Sarah is a junior barrister in her fourth year of practice. Her fee income for 2026/27 is £80,000 gross. Her allowable expenses are:
| Expense | Amount |
|---|---|
| Chambers rent and desk fees | £12,000 |
| Clerk fees (15% of gross fees) | £12,000 |
| Practising certificate and BSB fees | £1,200 |
| Professional indemnity insurance | £1,500 |
| Travel (court and conferences) | £2,400 |
| Law books and online subscriptions | £900 |
| Robes, wigs, and court dress | £300 |
| CPD courses | £700 |
| Accountancy fees | £1,800 |
| Total expenses | £32,800 |
Tax calculation
| Item | Calculation | Amount |
|---|---|---|
| Gross income | £80,000 | |
| Less allowable expenses | (£32,800) | |
| Taxable profit | £47,200 | |
| Personal allowance | £12,570 at 0% | £0 |
| Basic rate income tax | £34,630 at 20% | £6,926 |
| Total income tax | £6,926 | |
| Class 4 NICs (main rate) | £34,630 at 6% | £2,078 |
| Total tax and NICs | £9,004 |
Sarah keeps £38,196 after tax and NICs from her £47,200 taxable profit. Her effective tax rate on gross income is 11.3%.
What if Sarah makes a pension contribution?
If Sarah contributes £10,000 to a personal pension, her taxable income drops to £37,200. Her revised tax bill:
- Income tax: £24,630 at 20% = £4,926
- Class 4 NICs: £24,630 at 6% = £1,478
- Total: £6,404
The pension contribution saves £2,600 in tax and NICs, and the £10,000 grows tax-free inside the pension. This is straightforward tax planning that every barrister should consider.
Key Dates and Deadlines for 2026/27
| Date | Deadline |
|---|---|
| 6 April 2026 | 2026/27 tax year begins; MTD ITSA mandatory for income above £50,000 |
| 7 August 2026 | MTD quarterly update – Q1 (6 Apr – 5 Jul 2026) |
| 7 November 2026 | MTD quarterly update – Q2 (6 Jul – 5 Oct 2026) |
| 7 February 2027 | MTD quarterly update – Q3 (6 Oct – 5 Jan 2027) |
| 31 January 2027 | Self-assessment balancing payment for 2025/26; first payment on account for 2026/27 |
| 5 April 2027 | 2026/27 tax year ends |
| 7 May 2027 | MTD quarterly update – Q4 (6 Jan – 5 Apr 2027) |
| 31 January 2028 | Final declaration for 2026/27; balancing payment due |
Planning Checklist for April 2026
Before the new tax year begins, barristers should:
- Confirm MTD compliance: ensure your accounting software is MTD-compatible and linked to your HMRC account
- Review pension contributions: check for unused carry-forward allowances from 2023/24, 2024/25, and 2025/26
- Use your ISA allowance: the 2025/26 ISA deadline is 5 April 2026
- Check your VAT position: if turnover is approaching £90,000, consider whether voluntary registration is beneficial
- Review your expense records: ensure all 2025/26 receipts are digitised before the MTD transition
- Consider your self-assessment filing: the 2024/25 return deadline was 31 January 2026 – if you missed it, file immediately to limit penalties
Pupils and Recently Called Barristers
If you are in pupillage or recently called, the tax position differs in several ways:
- Pupillage awards are taxable as self-employment income, not employment income
- Guaranteed minimum income during pupillage is also taxable
- First-year expenses (wigs, gowns, law books) can be significant – claim everything allowable
- Payment on account – HMRC may not require payments on account in your first year, but be prepared for a larger bill in January of your second year of practice
Frequently Asked Questions
When does the 2026/27 tax year start and end?
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027.
Do I need to use Making Tax Digital as a barrister?
If your gross self-employment income exceeds £50,000, you must use MTD-compatible software and submit quarterly updates to HMRC from 6 April 2026. Those earning between £30,000 and £50,000 join from April 2027.
How much can I pay into my pension in 2026/27?
The annual allowance is £60,000. You can also carry forward unused allowances from the previous three tax years, potentially contributing well above £60,000 in a single year if you have unused relief available.
What is the VAT registration threshold for 2026/27?
The VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period. This figure has applied since 1 April 2024.
Can I claim tax relief on my wig and gown?
Yes. Robes, wigs, bands, wing collars, and other court dress are allowable business expenses for practising barristers.
Has Class 2 National Insurance been abolished?
Yes. Class 2 NICs were abolished from 6 April 2024. Self-employed barristers now pay only Class 4 NICs on taxable profits, and still accrue National Insurance credits for state pension purposes.
What are the MTD quarterly update deadlines?
For 2026/27, quarterly updates must be submitted by 7 August 2026 (Q1), 7 November 2026 (Q2), 7 February 2027 (Q3), and 7 May 2027 (Q4). Each update covers the preceding quarter.
Need specialist help? Contact Jack Ross to discuss your tax position for 2026/27.
