VAT on disbursements
In force from 19 February 2009
Within your practice, many solicitors refer to a variety of costs related to providing your service as disbursement, such as travelling expenses. But these costs might not qualify as disbursements for VAT purposes.
You must charge your client VAT when billing if an item is not a disbursement for VAT purposes.
This practice note seeks to clarify this issue to help you identify what is or is not a disbursement for VAT purposes.