The cyber attack on the Legal Aid Agency could push barristers who predominantly do publicly funded work into major debt, the Gazette has learned - after one barrister revealed they have just had to pay a £4,000 VAT bill despite facing significant disruption to their income over the next few weeks.
The impact of the cyber attack on barristers, who are self-employed, was revealed during a legal aid update at Legal Action Group’s housing law conference last Friday.
A barrister in the audience told the conference that she paid a £4,000 tax bill the previous weekend which has left her ‘drained’ - but she faces little income coming through over the next weeks while the LAA tries to get its digital systems back up and running.
The barrister told the Gazette that she has to pay a VAT bill every three months. If she doesn't pay it, she will be fined. She also has other bills to pay, such as chambers' rent and commission.
Bar Council chair Barbara Mills KC has written to the chief executive of HM Revenue & Customs to draw attention to the LAA cyber-attack after some barristers called HMRC’s debt management line - only to find call handlers were unaware of the attack.
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A spokesperson for the Bar Council said that in her letter, Mills outlined the impact that the cyber-attack is having on barristers who predominantly do legal aid work and the particular concerns regarding cashflow difficulties with VAT and tax payment deadlines coming up.
Mills requested that information about the LAA cyber attack be shared with HMRC call handlers and that HMRC consider additional help and flexibility for barristers, such as an extended period for payments.
Mills also raised the issues in meetings with the LAA chief executive, who has written to HMRC.
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 payment plans.’
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