BIM74020 - Abolition of the cash basis: barristers and advocates in early years of practise: FA98/S43/ITTOIA05/S160

Barristers are still in a category of their own in the early years of first practising

Barristers and Advocates are regarded as commencing in practice when they first hold themselves out as available for fee earning work - FA98/S43 (2)/ITTOIA05/S160(2).

Barristers or Advocates in practice for a period not more than seven years after commencement of practice may compute their profits on

• a cash basis, or
• by reference to fees earned whose amount has been agreed or in respect of which a fee note has been delivered.

Once a particular basis has been adopted it must be applied consistently - FA98/S43 (3)/ITTOIA/S160 (4).

The exemption described above ceases to apply if for any period the Barrister or Advocate adopts a true and fair basis of accounting. In that event FA98/S42/ITTOIA05/S25 applies to all subsequent periods - FA98/S43 (4)/ITTOIA/S160 (5) and (6).