VAT and new Guideline Hourly Rates
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The LSC have updated their position on the recent VAT change and have published a further guide that is available at the link below:-
The broad approach is that all cases reported as concluded before 1st December 2008 will attract a VAT rate of17.5%, and all cases reported as concluding on or after 1st December 2008 will attract a VAT rate of 15%.
The guide does however set out full details of how the LSC are going to treat VAT in particular cases.
The new guideline rates for 2009 have also been published and are available at :-
The main point of note arising out of the new rates is that Band 3 has been amalgamated with Band 2.
As the rates have increased, now would be a good time to update your client care letters and CFAs giving the new rates for 2009 and to write to clients advising them of the increase in hourly rate.
If you have any complex cases where you may want to charge a higher rate remember to take this into account when agreeing a retainer and writing to clients to advise them about any increase.
If you would like to have a word about hourly rates or indeed any other costs issues please do not hesitate to contact me.
Andrew
A Neat Legal Services
Law Costs Draftsmen and Legal Costs Consultants.
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