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#1. The interest received on for money held in a business account is:
#2. To be valid for VAT purposes a credit note must be issued within:
#3. 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?
#4. 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?
#5. Your firm is acting for a client. The case is a criminal matter. The fee earner instructs a specialist to produce video copies of CCTV footage where the action is slowed down, hard copies of individual frames and enhanced/enlarged sections of images are produced. The cost of this service is being passed on to the client.
When billed, the cost is a:
#6. 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:
#7. 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?
#8. 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. What is the name given to the VAT that is due on your taxable supplies i.e your fees/expenses and vatable disbursements?
#10. 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?
VAT within Law Firms
Length: 3 Hours
Published September 24, 2022 | Last Updated on March 12, 2025
Who is this training for?
This online workshop is for Solicitors, Lawyers, Accountants, Compliance Officers, COFA’s, Legal Accounts Professionals, Legal Cashiers and anyone that has any involvement in working in legal finance and compliance.
Purpose of this training?
VAT is a complex and ever changing tax. This workshop is designed to focus on the areas that cause the most confusion and the areas that HMRC specifically targets law firms during a VAT inspection.
The workshop will explore the practical application of the VAT regulations to help you to be compliant. It will explore the VAT Act 1994, Notice 700, case law and address issues that have emerged from cases like the ‘Brabners’ decision and the implications of those decisions to law firms. Conundrums and scenarios will be posed and discusses throughout the session.
Introduction
- Scope of VAT within the UK
Time of Supply
- Basic Tax Point
- Actual Tax Point
- Extensions
Sales/Fees
- Client’s overseas (Place of ‘belonging’)
- Land related services – direct and indirect
Third Party Payers
- Indemnity basis
- VAT invoices
Disbursements – accounting options
- Disbursements and Recharges
- What is a disbursement (SRA and HMRC’s definition)
- Discretionary treatment of Counsel’s Fees
- Overseas experts
- Recharges – accounting options
- VAT invoices
- Search fees
- Medical records and reports
- Case Law
Administrative Aspects of VAT
- Valid VAT invoices
- Valid credit notes
- Recovery of input VAT
- Supplier invoices 6 months older or greater
- Subsistence, travel and staff entertainment expenses
- Mixed expenses (business and personal usage)
- Mobile phones
- VAT Returns
- Correcting errors
- Bad debt relief
Partial Exemption
- What is it?
- Calculation Methods
- Case Law
Guidlines for Compliance (GfC8)
- What is it?
- HMRC’s Expectations
- VAT Policies
- VAT Risk Register
- Accountability – the COVA
Further Information
Practice notes and training sessions represent the Association of Legal Compliance & Accounts’ view of good practice in a particular area. They are not intended to be the only standard of good practice that firms can follow.
Practice notes and training sessions are not legal advice, and do not necessarily provide a defence to complaints of misconduct or poor service. While we have taken care to ensure that they are accurate, up to date and useful, we will not accept any legal liability in relation to them.
Frequently Asked Questions
Why Online?
All ALCA online training is delivered live, interactive and is recorded. We bridge the gap between ‘face-to-face’ and online training by applying a blended approach. Questions can be posed to trainers throughout the workshops with quizzes/polls being used to engage with attendees.
Workshops can be continuously replayed for 60 days after broadcast.
Benefits?
- Reduced cost
- Can be taken anywhere on any device – no travel time or cost
- Shorter and more efficient than face-to-face
- Live and interactive
- Recorded and can be replayed at your leisure
Depending on your subscription and the length of the workshop, the pricing is as follows:
Our online workshops are delivered via Zoom. You can access the session via your computer, tablet or mobile device.
Details on how to join the online session will be provided the day before the training goes live.
We recommend you run a system test and check your internet speed by clicking HERE.
If your firm prevents you from using Zoom, please contact us.
There is no requirement to attend live but we advise that you do where you can as this will be the best experience for you. Don’t forget, you can pose questions live to the trainer and join in with the interaction when you attend live. Also, be mindful that you have access to the recording for 30 days, after which, it will no longer be available.
Not at all. We prefer it if candidates do as it makes the training more engaging but it is not mandatory to turn your camera or microphone on during the training session.
If you don’t have a microphone, you can still pose questions using the chat facility.
