Virtual Event
VAT Within Law Firms
Get Tickets
Free – £145.00
Virtual Event
VAT Within Law Firms
Get Tickets
Free – £145.00
As an Org Plus Plan subscriber, you have unlimited access to the On Demand training library of pre-recorded training videos. You can watch these as many times as you like at your own leisure. Questions can be posed to trainers during and after the video, with responses being provided within 2 working days. Ensure you’re logged into your account to access.
For non-subscribers and all other plan subscribers, access can be purchased separately.
#1. You receive an invoice from an overseas supplier for £100 (without VAT) but you would have been charged £20.00 VAT if you’d used a UK supplier.
What figures would you need to put on your VAT return and in what boxes would you put them?
#2. 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?
#3. 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?
#4. What is the name given to the VAT that is due on your taxable supplies i.e your fees/expenses and vatable disbursements?
#5. Your firm operates under the VAT Cash Accounting Scheme. Which of the following are excluded from the scheme and must be accounted for under the VAT Standard Accounting Scheme?
Select all that apply:
#6. To be valid for VAT purposes a credit note must be issued within:
#7. You’re acting for client in a land dispute case where the client has taken action against a deceased’s estate to secure title to a property they own. The client’s place of belonging is the USA. The disputed land is the UK. You draft an invoice for £2,000.00.
What VAT rate do you apply to your supply?
#8. 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:
#9. 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?
#10. You’re acting for a client in respect of a divorce. Your client’s place of belonging is Spain. Your firm’s place of belonging is the UK.
Under the post Brexit VAT rules, when invoicing the client, what tax rate do you apply?
VAT within Law Firms
Length: 3 Hours
Published September 24, 2022
Last Updated on May 1, 2023
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
Third Party Payers
- Indemnity basisv
- VAT invoices
- Disbursements and Recharges
- What is a disbursement (SRA and HMRC’s definition)
Disbursements – accounting options
- Discretionary treatment of Counsel’s Fees
- Overseas experts
- Recharges – accounting options
- VAT invoices
- Search fees
- Medical records and reports
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
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.
