Barristers warn VAT and tax deadlines could ruin careers as LAA cyber attack halts payments.
A crippling cyber attack on the Legal Aid Agency (LAA) has left barristers who rely on publicly funded work fearing bankruptcy as payments dry up just as hefty tax and VAT bills fall due.
The crisis came to light at a Legal Action Group housing law conference last Friday, when one barrister revealed that she had just paid a £4,000 VAT bill despite knowing that income from legal aid work would be delayed for weeks—or longer.
Speaking to the Gazette, the barrister said she felt “drained” after making the mandatory payment, knowing she has further outgoings for chambers’ rent and commission. “If I don’t pay VAT, I get fined. But with no payments coming in, I have no way to cover these costs.”
Embed from Getty ImagesThe cyber attack, which has left the LAA unable to process payments, has sparked alarm across the Bar. As self-employed professionals, barristers have no safety net when cash flow dries up.
Barbara Mills KC, chair of the Bar Council, has written to HMRC highlighting the crisis and calling for urgent intervention. The letter warned that many barristers who predominantly do legal aid work now risk falling into serious debt due to delayed payments and looming tax obligations.
Mills said: “These barristers have worked diligently to support access to justice, and the disruption caused by the LAA cyber attack threatens their livelihood. They must not be punished for circumstances beyond their control.”
According to Mills, some barristers who tried calling HMRC’s debt management line found that staff were unaware of the LAA cyber attack and unable to provide any help. In her letter, Mills urged HMRC to educate its call handlers about the situation and called for more flexible arrangements such as extended payment deadlines.
A Bar Council spokesperson confirmed that Mills had also met with the LAA’s chief executive, who in turn has written to HMRC to underscore the crisis and the need for urgent support.
In response, an HMRC spokesperson said: “We take a supportive approach to dealing with customers who are having difficulty paying what they owe, working with them to find the best possible solution based on their financial circumstances. This includes agreeing tailored payment plans.”
The crisis shines a harsh light on the vulnerability of barristers working within the publicly funded sector. Legal aid work is vital for access to justice, but delays in payments can leave those doing it exposed to significant financial risk. Without urgent intervention and greater understanding from authorities, the attack threatens to deepen an already precarious crisis for many dedicated advocates.
