#1. 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

#2. 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

#3. You pay the firm's practising certificates from the business account.

When posting the transaction, What VAT rate should you select when posting the payment to the accounting system?

Zero Rated

Reduced Rate (5%)

Standard Rate (20%)

Exempt

Outside the Scope of VAT

#4. To be valid for VAT purposes a credit note must be issued within:

7 days of the refund payment being made to the client

14 days of the refund payment being made to the client

30 days of the refund payment being made to the client

3 months of the refund payment being made to the client

#5. You’re acting for the executors in dealing with the administration of a deceased person’s estate. The deceased was a British National and resided in the UK. However the executors and those you are corresponding with are based in Canada. There is UK property involved and it forms a significant portion of the estate along with UK based bank accounts.

When issuing the bill to the executors, is supply subject to standard rated VAT?

Yes

No

#6. In a contentious case, the VAT tax point will be the date of the invoice, provided the invoice is issued within how long after the work is completed?

14 Days

30 Days

2 Months

3 Months

#7. You're acting for a client in respect of a compromise agreement. The employer has agreed to pay your client's costs and has asked if you would address your invoice to them?

What would you issue the payer?

A VAT invoice addressed to the payer

A VAT invoice addressed to the client but denoted ‘payable by’ the third party payer

A request for payment (non-VAT invoice) addressed to the payer stating 'This is not a VAT invoice'

#8. 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

#9. 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

#10. 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

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 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?

#2. 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:

#3. You pay the firm's practising certificates from the business account.

When posting the transaction, What VAT rate should you select when posting the payment to the accounting system?

#4. To be valid for VAT purposes a credit note must be issued within:

#6. In a contentious case, the VAT tax point will be the date of the invoice, provided the invoice is issued within how long after the work is completed?

#7. You're acting for a client in respect of a compromise agreement. The employer has agreed to pay your client's costs and has asked if you would address your invoice to them?

What would you issue the payer?

#9. 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?

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

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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 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?

#2. 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:

#3. You pay the firm's practising certificates from the business account.When posting the transaction, What VAT rate should you select when posting the payment to the accounting system?

#4. To be valid for VAT purposes a credit note must be issued within:

#6. In a contentious case, the VAT tax point will be the date of the invoice, provided the invoice is issued within how long after the work is completed?

#7. You're acting for a client in respect of a compromise agreement. The employer has agreed to pay your client's costs and has asked if you would address your invoice to them?What would you issue the payer?

#9. 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?

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

Further Information

Frequently Asked Questions

Online – the Cons

Recent Compli-Forum Topics

Recent Blogs

#1. 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?

#2. 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:

#3. You pay the firm's practising certificates from the business account.

When posting the transaction, What VAT rate should you select when posting the payment to the accounting system?

#7. You're acting for a client in respect of a compromise agreement. The employer has agreed to pay your client's costs and has asked if you would address your invoice to them?

What would you issue the payer?

#9. 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?