MTD for Freelance Solicitors & Legal Consultants —
Consultancy Fees and Your Threshold
Use gross fees before SRA/regulatory costs, insurance, or chambers/platform fees are deducted.
- The same £50k / £30k / £20k phased MTD thresholds apply as any self-employed sole trader, freelance legal consultancy day rates are often among the highest in professional services.
- Many freelance solicitors operate through a consultancy model (such as an SRA-regulated consultant lawyer platform) that takes a percentage before paying you, your MTD qualifying income is your retained share, not the client's full invoice.
- SRA practising certificate fees, professional indemnity insurance, and CPD are all standard allowable expenses.
If you work as a self-employed freelance solicitor or legal consultant, taking on client matters directly or through a consultant lawyer platform, Making Tax Digital applies to you the same way it applies to any sole trader. Freelance legal work commands some of the highest day rates in professional services, so the thresholds can arrive sooner than in other self-employed fields.
Are You Affected by MTD as a Freelance Solicitor?
Yes, if your gross consultancy fee income, plus any other self-employment income, exceeds the relevant threshold:
| Tax Year Assessed | Threshold | MTD Start Date |
|---|---|---|
| 2024–25 | Over £50,000 | 6 April 2026. Live since April 2026 |
| 2025–26 | Over £30,000 | 6 April 2027 |
| 2026–27 | Over £20,000 | 6 April 2028 |
Your gross income is your total fees received before expenses, SRA fees, insurance, and any platform costs are all deducted afterwards, not before, when checking your threshold.
Consultant Lawyer Platforms — What Counts as Your Income
What You Can Claim
| Expense Category | Examples |
|---|---|
| Regulatory fees | SRA practising certificate renewal |
| Insurance | Professional indemnity insurance, where not covered by your platform |
| CPD | Continuing professional development courses |
| Software | Case management and legal research subscriptions |
| Use of home / office | Simplified flat rate, or a proportion of costs if you rent office space |
Records for Consultancy Fees and Platform Work
Freelance solicitors and consultants often earn through legal platforms and consultancies, plus direct clients. Which route you use affects both your records and whether the income counts at all.
- Keep each platform or consultancy statement, and record gross fees before the platform’s deduction.
- Record direct client invoices separately from platform income.
- Keep SRA practising certificate, indemnity insurance and CPD costs with receipts.
- Keep subscriptions for legal research and practice management tools in their own category.
- Log mileage and travel to client sites.
Common Mistakes Freelance Solicitors Make
- Recording only the platform payout. The platform’s fee is an expense, and the gross fee is your income.
- Assuming status is obvious. If a consultancy pays you through a payslip, that income is employment income.
- Forgetting indemnity as an expense. It is often large, and it is allowable.
- Mixing company and personal income. If you invoice through a company, the company is outside MTD for Income Tax.
- Leaving out other fees. Training, writing and expert-witness fees paid gross count too.
A Sample Quarter: What the Update Looks Like
A sample quarter for a solicitor working through a consultancy and a few direct clients.
| Q2: 6 July to 5 October 2026 | Amount |
|---|---|
| Platform and consultancy fees (gross) | £17,400 |
| Direct client invoices | £6,800 |
| Training and writing fees | £900 |
| Total income | £25,100 |
| Platform fees | £2,600 |
| Indemnity, SRA and CPD | £2,200 |
| Research and practice software | £560 |
| Travel and home office | £740 |
| Total expenses | £6,100 |
| Profit for the quarter | £19,000 |
Platform fees are an expense. The gross figure invoiced is what counts towards the threshold.
Worked Example
Imogen — Freelance solicitor, consultant lawyer platform
Imogen's £82,500 net share, not the £110,000 billed to clients, is well above the £50,000 Phase 1 threshold, so MTD already applies to her.
Frequently Asked Questions
Do I use the platform's gross billing or my net share for the MTD threshold?
Your net share, what you actually receive after the platform's split. The gross amount billed to the client is not your income for MTD purposes, only your agreed percentage of it is.
What's the MTD threshold for freelance solicitors and legal consultants?
The same as any self-employed sole trader: over £50,000 gross consultancy income in 2024–25 means MTD from April 2026, over £30,000 in 2025–26 means April 2027, over £20,000 in 2026–27 means April 2028.
Can I claim my SRA practising certificate fee?
Yes, your SRA practising certificate fee, along with professional indemnity insurance and CPD costs, are standard allowable expenses for a self-employed legal consultant.
I take on some matters directly, outside of any platform. Does that count differently?
No, both direct client work and platform-billed work are simply combined into one gross income total for your MTD threshold check, direct work just doesn't have a platform split to account for.
What software do I need as a freelance solicitor?
Any HMRC-recognised MTD software works. The main practical need is recording your net share from any platform arrangements accurately, which standard software handles through simple income categorisation.
Check Your Full MTD Position
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