Pressure on some barristers’ incomes means that many may need financial support at key cash flow crunch points in the year, according to UK finance provider LDF.
LDF said that the total earnings of barristers have risen to £1.5bn in the last year, up 5% on the year before, and 11% on two years ago.
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The company identified changes in the way that barristers work as the reason behind the increased earnings.
"Clients are now able to instruct barristers directly rather than only through a solicitor. Therefore clients will use barristers for some of the work that had previously been done by solicitors," LDF wrote.
However, the company highlighted that not all barristers experienced this rise in earnings and that the gap between earnings of those in corporate litigation and those in areas such as criminal law has widened significantly due to heavy cuts to legal funding in recent years.
"Criminal Legal Aid fees have recently been cut by 17.5% from pre March 2014 levels and earlier this year criminal barristers and solicitors even went on strike to protest against these cuts. Legal Aid has also been removed from almost all family law cases," the company wrote.
LDF said that because barristers are taxed based on what they bill rather than what they receive, even when their earnings have risen they can still have difficulties budgeting for large tax bills if fees are not paid promptly.
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By GlobalDataPeter Alderson, managing director at LDF, said: "Although barristers’ total earnings have risen substantially in the last year, they still need to protect themselves against high tax bills and fluctuating cash flows.
"There’s an increasing disparity of earnings between different areas of law, and although the figures show that overrall earnings for barristers have risen, cuts to legal funding has meant that some barristers have experienced the opposite.
"Many barristers will use finance to protect against their volatile cash flows. Giving them the security and peace of mind to pay their tax bill without having to deplete their cash cushion and cut back on mortgage payments or pension contributions."
