Authorisation to Practise (ATP) Process Guidance 2015

Authorisation to Practise (ATP) Process

This document provides practical guidance for barristers in order to prepare and undertake the PCF renewal process. It will address:

  1. The steps in the process
  2. The information needed to renew a Practising Certificate
  3. How to renew
  4. The deadlines that apply
  5. Schedules of the fees payable
  6. Policies that apply
  1. Renewing a Practising Certificate

The authorisation process requires an individual to:

  1. Update your insurance information
  2. Make a declaration of truth
  3. Verify CPD requirements,
  4. Declare the appropriate income band for the purposes of setting the appropriate fee,
  5. Select optional fees, and
  6. Update any personal details.

The individual may then complete the process by either paying the appropriate fees online or by delegating this authority to chambers or employer administrators.

In order to grant authorisation and in accordance with rS51 of the Scope of Practice Rules, the Bar Council may request additional information to support an individual’s application. This may be evidence of insurance, completion of CPD, evidence of earnings etc.

  1. Information required to renew a Practising Certificate

You should have to hand:

  1. Your user id and password.
  2. The user number is included with your notice of renewal.
  3. To reset your password, click on the link in the homepage
  4. From 2015, the basis of charging for the PCF changes to one based upon income earned. Barristers are expected to self-declare the correct fee payable according to the gross income billed or earned in the previous financial year. To do this you will need the value of your income for any 12 month period that ends between 31 December 2013 and31 March 2014.
  5. If you are a self-employed barrister, this is your gross fee income (fees earned), excluding VAT but before deduction of business and chambers expenses.
  6. If you are an employed barrister, this is your gross earningsfor the tax year, as shown on your P60 or similar documents.
  7. If you operate with dual capacity then you should aggregate these figures.
  8. Details are shown below in para 3.
  9. Your CPD records
  10. Completed record card as found on the Bar Standards Board website
  1. How to renew

You may apply for authorisation online or via a paper application. The online process should take 5 minutes to complete if you have the information to hand.

If you wish to complete the process via paper, then please call Bar Council Records Department on 020 7242 0934 or email and appropriate documents will be sent out to you.

Selection of the correct income band

You will be asked to choose a band into which your earnings fall. You will not, unless selected for spot checking after renewal, be asked to declare or validate your actual income.

To select the correct band, you are required to aggregate all income that arises from your services as a barrister as described in the BSB handbook.

If you have self-employed status

If your normal financial year falls between 31st December 2013 and 31st March 2014, then you should use the fees earned (billed) in those accounts to select your income band.

If yournormal financial year end falls outside of this period, you must compute your income based on a nominal year end of 31st March 2014. To do this, pro rata the income value taken from the two sets of accounts that straddle the 12 months to 31March 2014 to achieve a 12 month equivalent. By way of example:

For an accounting year end of 30 November, add together

  • the sum of 8/12ths of the income value from the accounts for y/e Nov 2013 (a pro rata value of income for the 8 months April 2013 to Nov 2013), and
  • 4/12ths of the income value from the accounts for y/e 30 Nov 2014 (representing the value of income for the 4 months from December 2013 to March 2014).

Your income values should include fees billed before deductions of chambers or business expenses and should exclude:

VAT on invoices, charges billed to recover travel or other business expenses (ie disbursements), payments from clients for fees billed in previous years, income not earned as a barrister (eg interest or investment income earned including rent, payments received under pensions), pupillage income, earnings not as a barrister (eg a sports coach).

Further details of specific allowances, exclusions and dealing with foreign currency are available under FAQs

If you have employed status

If you have employed status, you will need to aggregate your total earnings for the financial year to March 2014 from:

Employment (eg as shown on a P60 for a UK employee), Partnership, Director fees or dividends (where arising from your services as a barrister).

You should exclude:Fees earned as a judge. Commissioner or similar roles; pensions paid to you; interest or investment income received (eg rent received); expenses or travel allowances paid to you incurred to undertake your role (travel or similar); earnings not as a barrister (eg a sports coach).

Further details of specific allowances, exclusions and dealing with foreign currency are available under FAQs.

If you have dual statusthis requires that you aggregate your income under both statuses for the purposes of PCF.

  1. Application deadline and defaulters

The deadline for renewal of payment for practising certificates fees for 2015-16is Tuesday 31 March 2015.

If you have not completed the process by 1 April 2015, you may be liable for a surcharge of 20% of the PCF payable and risk referral to BSB.

If you do not complete the process by 30April2014, you will not be listed on the BSB Barristers’ Register and will not be authorised to practise.Any barrister believed to be practising without a certificate will be reported to the BSB, who will take such action as is considered appropriate.As offering reserved legal services without a practising certificate is both a criminal offence as well as being a breach of the Code of Conduct in the BSB Handbook, the Bar Council will contact respectiveHeads of Chambers or employer to alert them of any individuals potentially in breach.

  1. Fees payable

There are four fees payable including two compulsory fees, discretionary fee and a voluntary charitable donation:-

The Practising Certificate Fee (PCF)

The PCFfundsthe Bar Standards Board and selected Bar Council expenditure that falls within the ‘permitted purposes’ as defined by the LSB in accordance with section 51 of the Act and its rules.

Whilst the Bar Council is not able to assess the impact on any one individual barrister as a result of the basis of the fee change, the overall average PCF collection target for 2015 remains consistent and the average fee per barrister is estimated to be £605 (vs £606 per barrister 2014).

Under the LSB rules, the Bar Council has consulted on its budget and PCF proposals with the profession and has received approval of both from LSB. A copy ofthe consultation paper for the 2015/16PCF and budget is on the Bar Council’s website.

In addition, the website includes the Annual Report and Financial Accounts for Bar Council showing how the funding has been put to use. The Annual Report and Annual Business plan for the Bar Standards Board is shown on their own website.

Legal Services Board (LSB) and Office of Legal Complaints (OLC) levies

The Bar Council has a statutory obligation to fund a share of the operating costs of both the LSB and the OLC. The Bar Council has chosen to use a separate single levy for this to assist practitioners in distinguishing between the different applications of funds. This year, the basis of pricing of this levy changes to follow that used for the PCF.

For the LSB, the Bar Council’s share of costs is based on the proportion of barristers within the total regulated legal community (c3%). For the OLC, from 2015, the costs are based ona rolling three year average of the proportion of complaints about barristers handled within the total regulated legal community.

The amounts the Bar Council collects annually through this levy have varied to take into account any over or under achievement of collection targets by Bar Council from previous years. In 2014, we utilised the residual amounts collected from previous years and raised an additional £500,000 through the levy (set at an average of £32 per barrister) to pay the recharge of £828,000. We were left with a balance of £5,000 which was carried forward to 2015. In 2015, we have set the levy to collect up to £875,000 (an average of £57 per barrister and up 78% on the prior year) to meet the required payment of £842,000 and to allow for a small contingency which accommodates the uncertainty within the new income based model. As before, any residual amounts collected are reserved and accounted for separately against future LSB/OLC contributions and are reported as such in our audited accounts.

Bar Representation Fee (BRF)

All of the funds raised from the BRF are exclusively used representing the Bar’s interests, and promoting and supporting fair access to and the administration of justice. It is important to emphasise that the BRF does not fund the commercial activity of the Bar Council, which in itself is a valuable source of additional income that funds support and campaigns for the Bar. I have set out below some of the key activities that are funded in whole or in part by the BRF:

  • The Bar Mentoring Service to help barristers develop their career and secure Silk and judicial appointments
  • Publications and newsletters on important practice management issues such as remuneration, taxation and business efficiencies
  • Support to help shape the entities and business models of the future Bar
  • Promotion of Public Access and the benefits of directly instructing the Bar to gain access to specialist advisory and advocacy services, and
  • The Social Mobility PlacementScheme: promotes wider access to the Bar by working with talented students who might not have access to experience of the Bar.

By paying the BRF you are helping to ensure that the Bar Council can continue working on the Bar’s behalf and responding to challenges as they arise so that the future well-being and success of the Bar is secured.

The Pro Bono donation

Every member of the Bar is asked to include a charitable donation of £30 towards the running costs of the Bar Pro Bono Unit.

The Bar Pro Bono Unit says:

“The Bar Pro Bono Unit is an independent charity which relies on donations to meet all its running costs. We are very grateful to all those sets of Chambers, organisations and individuals who already help us.

Donations made on a regular committed basis (for example by standing order) are particularly appreciated, as they allow us to plan properly for the future. When aGift Aiddeclaration is completed, at no additional cost to yourself, we can receive an extra 25p for every pound that you give e.g. a donation of £100 is worth £125.”

The Bar Council has set this fee to be added by default and Barristers are invited to remove the tick in the appropriate box during the online renewal process should they not wish to donate.

The Bar Council will follow up with barristers who choose to donate to ensure that the gift aid forms are compelted to alow the charity to optimise its funding.

Schedule of Fees

The statutory fee due will depend on the income declared

Compulsory Fees
Income Band / PCF / LSB/OLC Levy
£0 - £30,000 / £100 / £ 9
£30,001 - £60,000 / £200 / £ 18
£60,001- £90,000 / £400 / £ 36
£90,001 - £150,000 / £725 / £ 69
£150,001 - £240,000 / £1,100 / £ 105
£240,001 and above / £1,500 / £ 133

Discretionary fees and Donations

The Bar Representation Fee and Pro Bono donation are tax efficient fees and may be used to reduce the tax paid on net income. The BRF includes VAT and the Pro Bono donation has a gift aid option.

Discretionary Fee and Donation
Bar Representation Fee(inc VAT) / Pro Bono
£0 - £30,000 / £100 / £30
£30,001 - £60,000
£60,001- £90,000
£90,001 - £150,000
£150,001 - £240,000
£240,001 and above

The Bar Council will provide VAT receipts to individuals or chambers detailing the VAT included in any BRF payment.

Payment Methods

Fee payment is easiest online by one of the following methods

  • Chambers or employer block payment
  • Debit/credit card (Visa, Visa Debit (Delta), Visa Electron, MasterCard and UK Maestro are all accepted)
  • Bank Transfer

Chambers/Employer block payment

Individuals may delegate payment to their chambers or employer during the online renewal process. This step is on the final page of the online declaration.

Barristers remain individually responsible for their respective application, and for maintaining and providing any supporting documentation that may be required. Barristers retain responsibility for the timely payment of the correct fees even when delegated permission has been granted to chambers or an employer.

The deadline for Barrister to complete renewals online and delegate payment to chambers or an employer is 13March 2015.

  1. Policies that Apply

Low Income Waivers

Following the introduction of this income based pricing model, which takes into account lower fees for lower income levels within the pricing structure, the separate Low Income Waiver arrangement has been withdrawn.

Discounts for Block Payment

The Bar Council encourages chambers and employers to make block payments to ease the administrative burden of multiple payments by offering adiscount up to 5% on the aggregate PCF and BRF totals for chambers/employer where a single payment on behalf of fiveor more barristers.

A discount of 2.5% is available for groups of 5 or more barristers, rising to 5% for 100 or more barristers.

The Bar Council may defer or withhold this discount from chambers or employers where that party has outstanding debts to Bar Council by providing notice in writing to that chambers.

Refunds -Ceasing or suspending practise

Barristers are entitled to a pro rata refund of Practising Certificate Fees and Bar Representation Fees if they elect to cease or suspend practice during the first three months of the relevant year. Barristers ceasing or suspending from practice after 1st July in any year are not entitled to a refund unless taking maternity or paternity leave. Barristers are not entitled to refunds for the LSB/OLC levy, the Pro Bono donation or the BRF.

To claim a refund, a barrister must notify Bar Council of their change of status within 28 days of the effective date either online or in writing. Any refund due will be applied as of the date of the change. In the event that notification is made later than 28 days, the refund will apply from the date of notification rather than the date of change.

The Bar Council will pay any refund,usually by bank transfer, within 14 days of notification of the change and equally requires any additional charge to be paid within 14 days of the request for payment.

Maternity or Paternity leave.

Barristers suspending practice to take maternity or paternity leave will be eligible for a pro rata refund of PCF and BRF at any time in the year, subject to notification within 28 days. No refund will be issued for the LSB/OLC levy or the Pro Bono donation.

Returning to practise

An individual who either returns to, or commences practise after, 1 April 2015 will be charged a pro rata proportion of the PCF and the BRFand a full years charge for the LSB/OLC levy.

Individuals who have ceased to practise and/or are retired who wish to return to practice briefly (e.g.for a day case or similar), must pay pro rata the appropriate PCF Fee for the entire month or months into which the practising dates fall, along with the full LSB/OLC levy.

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