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VAT on disbursements - update

11 April 2018

We are aware that some law firms have received letters from HMRC regarding the VAT treatment of electronic searches.

We encourage firms who have received such letters to get in touch with us directly, particularly where the firm’s practice was to pass on the search to the client.

As members will be aware, the Law Society is in the process of reviewing its guidance on VAT on disbursements, following the decision in Brabners LLP v HMRC Commissioners, and are engaging with HMRC on the inconsistencies arising from the decision.

If your firm has received a letter regarding the VAT treatment of electronic searches, please contact Lauren Rabaiotti, policy adviser