Barrister:
How much should I put aside for taxes?
We cannot recommend strongly enough that you put away a proportion of your income on a regular basis to save up for your tax. You should transfer funds on a regular basis to a separate interest bearing bank or building society account for this purpose.
It helps to know, of course, what proportion of your income you should put away. This is impossible to assess with any accuracy because the circumstances of every individual are different. As your income rises, the tax and national insurance bands change, personal tax allowances may be used up by other income and business expenses (including clerks’ and chambers’ costs) are different for every barrister.
We advocate using a rule of thumb guide to redirect your fees into a tax savings account. This tax savings account should be used to accumulate funds for the payment of your income tax, national insurance and VAT liabilities as they fall due. We will work out a rule of thumb percentage that you can apply to your income, which is appropriate to your personal circumstances.
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Where next?
Within Established barrister…- Can I claim for all of my motor expenses?
- Do I get full tax relief for my car and computer?
- Can I claim tax relief on my court clothing?
- I am buying a house: can you help me?
- Is there any tax relief for working from home?
- Can I pay my spouse for secretarial duties?
- How does the catch up charge affect me?
- How much can I pay into my pension scheme?
- Can you help me budget my personal finances?
- What happens if I become ill or am injured? Can I insure against this?
- I’ve received a letter from the taxman – help
Within Barrister…
General…
