Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 06 Sep 2024 15:10:56 GMT by Ant Nichols
Hi all. I have a query on whether to be charging our output VAT on a bill to our client where we have paid an out of scope fee on behalf of the client. For example - if we receive an invoice for £1,000.00 for a financial dispute resolution mediation meeting between two parties and a private Barrister, the invoice is addressed to us as out of scope of VAT as it falls under the scope due to their yearly income. Would we then bill the fee to our client as £1,000.00 plus our output VAT of £200.00 as we are deemed to have added our professional service to the charge by reviewing the meeting notes and progressing their case? Many thanks in advance.
Posted Thu, 12 Sep 2024 14:04:31 GMT by HMRC Admin 13 Response
Hi,
If it is just a recharge then you would have to add 20% to the recharge.
You could only consider this recharge  to be Outside The Scope if it is deemed as a disbursement.
Please see the guidance at: VAT guide (VAT Notice 700) Section 25
Thank you

You must be signed in to post in this forum.