VAT on Medical Reports
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There has been some concern recently about whether VAT should be charged on the cost of medical reports (where the appropriate expert has not charged VAT) on the basis that obtaining a medical report was part of the Solicitor's service in respect of which VAT was chargeable.
The position has now been clarified in a case heard in the Manchester Tax Tribunal when the Tribunal accepted that whilst the "use" of the medical reports was part of the legal service provided by the Solicitor, VAT on that service was already charged as VAT on profit costs and the "obtaining" of the report was a separate service carried out by the Solicitor as an agent on behalf of the Claimant, and that the fee incurred was therefore a true disbursement and not subject to VAT.
Another couple of recent cases which may be of interest to practitioners are :-
- Clarke v Maltby where the Trial Judge criticised the Defendant for making allegations of exaggeration which were not supported by medical evidence; and
- Connaughton v Imperial College Healthcare NHS Trust where the Court was satisfied that a CFA covering the substantive action also covered an application for pre-action disclosure.
If you would like a word about this, or indeed about any costs issue, please don't hesitate to contact me.
Andrew Neat
A Neat Legal Services
Law Costs Draftsmen and Legal Costs Consultants
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