VAT for Solicitors

Topics to be Covered

Introduction

• Scope of VAT within the UK

Tax Points

• Date of Supply

VAT on Solicitors Fees

• Land related services
• Place of ‘belonging’
• What is a disbursement for VAT purposes?
• Treatment of general expenses
• Disbursements - accounting options
• Discretionary treatment of Counsel's Fees

Payment of Third Party Costs

• Indemnity basis

Legal Aid

• Correct Treatment of Regular Payments from the LSC

Administrative Aspects of VAT

• VAT invoices
• Credit notes
• Recovery of input tax
• Subsistence, travel and staff entertainment expenses
• Mobile phones provided to staff
• VAT Returns & the payment of tax
• Correcting errors
• Relief for bad debts