#1. You're acting for a client whose place of belonging is Jersey. You have instructed a UK barrister on behalf of the client. The barrister has issued you with a VAT invoice addressed to your firm and has charged you £2,000 plus VAT.

When billed to the client, you would treat the cost as:

Recharge net cost plus VAT

Disbursement net cost plus VAT

Recharge net cost no VAT

Disbursement net cost no VAT

#2. What is the name given to the VAT that is due on your taxable supplies i.e your fees/expenses and vatable disbursements?

Output VAT

Input VAT

#3. You’re acting for VAT registered business client in a litigation matter. Your services were provided to and used by your client. A third party has agreed to pay your client’s legal costs and you have issued the payer with a note of your costs requesting the full amount. The payer has stated that they’re liable for the net amount only and that your client should discharge the VAT amount.

Is the payer correct?

Yes

No

#4. You pay the window cleaner for cleaning the windows of your offices. They are not registered for VAT.

What VAT rate should you select when posting the invoice to the accounting system?

Zero Rated

Reduced Rate (5%)

Standard Rate (20%) but override the VAT amount to £0.00

Exempt

Outside the Scope of VAT

#5. Your firm is acting for a client in respect of a purchase of a residential property. The lawyer applies for an OS1 search direct from the Land Registry. The search result reveals that there has been alterations made to the register since the date the Official Copies were produced by way of a restriction. The lawyer advises the client on the results of the search.

When billed to the client, you would treat the cost as:

Recharge net cost plus VAT

Disbursement net cost plus VAT

Recharge net cost no VAT

Disbursement net cost no VAT

#6. The interest received on for money held in a business account is:

Standard Rated (20%)

Zero Rated (5%)

Exempt

Outside the Scope of VAT

#7. You're acting for a client in a contentious matter. You have been issuing statute bills each month. The case has now concluded and you're preparing the full and final bill. You wish to revisit the amount on some of your previously issued interim bills by increasing the amount charged.

Is this permissible?

Yes

No

#8. You instruct a medical reporting agency to obtain copy-medical legal documents on behalf of a client that has been involved in a road traffic accident.

Is this cost a disbursement for VAT purposes or a recharge?

Disbursement

Recharge

#9. You are acting for a client whose place of belonging is Guernsey and they are making a claim through the UK courts against a water provider for damages on a London property arising from water ingress which the client claims the provider is liable for.

When issuing a bill to the client, what VAT rate do you apply to your supply?

Standard Rated (20%)

Zero Rated (0%)

Exempt

Outside the Scope of UK VAT

Outside the Scope of VAT

#10. Normal VAT Tax Point (time of supply) rules apply to Legal Aid work?

True

False

On Demand – VAT within Law Firms

VAT within Law Firms

Who is this training for?

Purpose of this training?

Introduction

Time of Supply

Sales/Fees

Third Party Payers

Disbursements and Recharges

Administrative Aspects of VAT

Results

#1. You're acting for a client whose place of belonging is Jersey. You have instructed a UK barrister on behalf of the client. The barrister has issued you with a VAT invoice addressed to your firm and has charged you £2,000 plus VAT.

When billed to the client, you would treat the cost as:

#2. What is the name given to the VAT that is due on your taxable supplies i.e your fees/expenses and vatable disbursements?

#4. You pay the window cleaner for cleaning the windows of your offices. They are not registered for VAT.

What VAT rate should you select when posting the invoice to the accounting system?

#6. The interest received on for money held in a business account is:

#8. You instruct a medical reporting agency to obtain copy-medical legal documents on behalf of a client that has been involved in a road traffic accident.

Is this cost a disbursement for VAT purposes or a recharge?

#10. Normal VAT Tax Point (time of supply) rules apply to Legal Aid work?

Further Information

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Online – the Cons

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An Introduction to Legal VAT

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On Demand – VAT within Law Firms

VAT within Law Firms

Who is this training for?

Purpose of this training?

Introduction

Time of Supply

Sales/Fees

Third Party Payers

Disbursements and Recharges

Administrative Aspects of VAT

Results

#1. You're acting for a client whose place of belonging is Jersey. You have instructed a UK barrister on behalf of the client. The barrister has issued you with a VAT invoice addressed to your firm and has charged you £2,000 plus VAT.When billed to the client, you would treat the cost as:

#2. What is the name given to the VAT that is due on your taxable supplies i.e your fees/expenses and vatable disbursements?

#4. You pay the window cleaner for cleaning the windows of your offices. They are not registered for VAT.What VAT rate should you select when posting the invoice to the accounting system?

#6. The interest received on for money held in a business account is:

#8. You instruct a medical reporting agency to obtain copy-medical legal documents on behalf of a client that has been involved in a road traffic accident.Is this cost a disbursement for VAT purposes or a recharge?

#10. Normal VAT Tax Point (time of supply) rules apply to Legal Aid work?

Further Information

Frequently Asked Questions

Online – the Cons

Recent Compli-Forum Topics

Recent Blogs

#1. You're acting for a client whose place of belonging is Jersey. You have instructed a UK barrister on behalf of the client. The barrister has issued you with a VAT invoice addressed to your firm and has charged you £2,000 plus VAT.

When billed to the client, you would treat the cost as:

#4. You pay the window cleaner for cleaning the windows of your offices. They are not registered for VAT.

What VAT rate should you select when posting the invoice to the accounting system?

#8. You instruct a medical reporting agency to obtain copy-medical legal documents on behalf of a client that has been involved in a road traffic accident.

Is this cost a disbursement for VAT purposes or a recharge?