Introduction
· Scope of VAT within the UK
Tax Points
· Time of supply - a ‘one-off’ or a ‘continuous supply of services?
· Special rules for contentious matters
· Treatment of deposits and client monies
VAT on Fees - How to determine whether VAT should be charged to a client
· Commissions from third parties - possibly exempt?
· Special rules on payments to law firms
· International clients
o The VAT ‘General Rule’
o Place of ‘belonging’ - does it matter if the client is a business or an individual?
o Land-related services e.g. conveyance and administration of estates
· What is a disbursement for VAT purposes?
o HMRC specific guidance, agreements and case law
Costs and Input Tax
· Treatment of general expenses
· Disbursements - accounting options on VAT charges coming in
· Discretionary treatment of Counsel's fees
· Special input tax rules for law firms
Administrative Aspects of VAT
· VAT invoices, format for UK and international services
· Credit and debit notes
· Relief for bad debts
Recovery of the Firm’s Input Tax
· Subsistence, travel and staff entertainment expenses
· Mobile phones provided to staff
· Gifts and salary enhancements
VAT Returns & the Payment of Tax
· Correct completion in accordance with HMRC guidance
· Correcting errors and which errors should be reported to HMRC separately
