Sector summary ― solicitors

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides a summary of key VAT issues of relevance to solicitors.

Areas covered include:

•
an introduction to the sector and core services of solicitors
•
disbursements
•
commission
•
other kinds of income
•
place of supply of a solicitor’s services
•
identifying the recipient of a supply of legal services
•
time of supply and invoicing
•
key case law for solicitors

Introduction to the sector

Solicitors can deal with many types of legal matters including:

•
litigation
•
conveyancing
•
trusts and other execution services
•
general legal and tax advice

Most legal services supplied by solicitors in the UK are taxable at the standard rate.

Despite this apparent simplicity there can be various areas of difficulty for solicitors which include:

•
the VAT implications of disbursements
•
commissions and other income streams attracting non-standard VAT liability
•
identifying the place of supply of services
•
identifying the recipient of a supply of services

Disbursements

Overview

Solicitors often recharge costs to their clients or make what

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Trusts and Inheritance Tax

BPR ― trading and investment businesses

BPR ― trading and investment businessesIntroductionThe basic qualification rules for business property relief (BPR) are illustrated in the Flowchart ― trading or investment business for BPR purposes.For an overview of BPR, see the BPR overview guidance note.Relevant business propertyThe main

14 Jul 2020 15:36 | Produced by Tolley Read more

Corporation Tax

What are connected companies for loan relationship purposes ― practical approach

What are connected companies for loan relationship purposes ― practical approachBrief overview of the rulesThe loan relationships legislation applies to any ‘money debt’ arising from the lending of money entered into by a company, either as a lender or borrower. The rules are contained in CTA 2009,

20 Apr 2021 16:00 | Produced by Tolley Read more

Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more

��Ƶ