Q&As

When can you add VAT on a Statement of Costs (N260) lodged at court?

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Published on LexisPSL on 28/11/2017

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • When can you add VAT on a Statement of Costs (N260) lodged at court?
  • Can VAT be recovered by a receiving party
  • Entitlement to VAT
  • Solicitors’ bills
  • Disbursements
  • When VAT should not be claimed
  • Change in VAT rates
  • Apportionment

When can you add VAT on a Statement of Costs (N260) lodged at court?

We have assumed that this Q&A is referring to a statement of costs lodged for the purposes of summary assessment.

Practice Note: VAT on costs sets out and explains the special provisions relating to VAT in CPR PD 44. These provisions apply to claims for VAT in respect of costs being dealt with by either summary assessment or detailed assessment (CPR PD 44, para 2.1).

Form N260 is a model form of statement of costs to be used for summary assessment.

The statement of costs must be filed and served on any party against whom an order for payment of those costs is intended to be sought as soon as possible and in any event (CPR 44 and CPR PD 44, para 9.5(4)):

‘(a) for a fast track trial, not less than 2 days before the trial; and

(b) for all other hearings, not less than 24 hours before the time fixed for the hearing.’

CPR PD 44, para 9.5(2) states:

‘(2) Each party who intends to claim costs must prepare a written statement of those costs showing separately in the form of a schedule—

…(g) any VAT to be claimed on these amounts.’

Can VAT be recovered by a receiving party

The receiving party is responsible for ensuring that VAT is only claimed if it is unable to recover VAT

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