Commentary

V7.459 Agents—disbursements

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.459 Agents—disbursements

Part V7 Tax planning | Commentary

V7.459 Agents—disbursements

The VAT rules concerning disbursements are very strict, and need to be followed in every case to avoid a potential (and often unnecessary) output tax charge.

Costs incurred by an agent, eg in relation to his telephone and motoring costs cannot be recharged to his client as a non-taxable disbursement. A disbursement situation only applies when the cost properly belongs to his client, for example, a solicitor will often pay statutory fees on behalf of a client, such as court fees, stamp duty etc. These fees properly belong to the client, and are not part of the solicitor's standard rated services to the

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