In a continuing series, the Law Society's practice advice service offers guidance on a range of issues

Q My firm has just set up an internal on-line banking system.

We propose charging our clients a fee for telegraphic transfer of funds.

Will this fee attract VAT?

A The view of Customs & Excise is set out in the Law Society's VAT Guide (see page 5): 'Telegraphic transfer fees are not disbursements for VAT purposes and, thus, must be subjected to VAT when passed on to the client.'

In the case of Shuttleworth & Co v Commissioners of Customs & Excise (Lon/94/986A), it was held that the transfer of funds by a solicitor was part of the overall conveyancing service provided by a solicitor to his client.

Therefore, a telegraphic transfer fee could not for VAT purposes, be treated as a disbursement in the solicitor's bill to his client.

The VAT Guide can be found on the Law Society's Web site: www.lawsociety.org.uk (go to specialisms, and click on tax law).

Q What information should I give my client when entering into a conditional fee agreement (CFA)?

A Before clients can decide whether to go ahead with a particular CFA, the most important information they must have is:

- The prospects of success;

- The likely level of damages;

- The percentage success fee to be charged in the event that they win and how this figure has been arrived at;

- The likely level of own solicitor's costs;

- Approximately how much (in money) the success fee will come to;

- The amount that a client might have to pay to make up the shortfall between the costs and disbursements recovered from the other side and the total amount of own solicitor's costs and disbursements (a shortfall could arise because of differences between the hourly charging rate to the client compared with the rate which can be recovered from the other side - usually on assessment; it could also arise when, on assessment, an amount claimed from the other side is held to be a solicitor and own client item);

- Whether or not the defendant can pay.

This is not only good sense but it is expressly required by the Conditional Fee Agreement Regulations 2000 (SI 2000 692).

It is also a matter of professional conduct by virtue of rule 15 of the Solicitors Practice Rules and the Solicitors Costs and Client Care Code 1999, which can be found in The Guide to the Professional Conduct of Solicitors, 1999, eighth edition.

Q Once my client and I have agreed to enter into the Law Society's model CFA should I recommend that he seek independent legal advice before signing the agreement?

A There is no requirement for clients to take independent legal advice before signing CFAs.

This assumes that, by using the plain English version of the model, its terms will have been fully explained.

Therefore, it is reasonable to expect the client to be able to determine, unaided, whether to go ahead.

If you use a different version, other than the Society's model agreement, particularly one that is not in plain English, you should consider whether the client can make an informed decision about its terms without independent advice.

It may be useful to run through the checklist in the Society's leaflet, Conditional Fees, what they are and how they can help you, prior to signature.

This leaflet is available from the Society's bookshop, tel: 020 7320 5640.

Q I am acting in a criminal matter and need to instruct an expert in dyslexia to prepare a report on my client.

I am having trouble locating such a specialist.

Can you help?

A There are a number of locations where you can find an expert.

There are several different bodies, each claiming to represent expert witnesses.

Many experts are members of more than one body.

Many experienced and much sought-after experts consider it unnecessary to be on anybody's list, preferring the process of personal recommendation, which keeps them fully employed.

For further information, see the Society's publication Active Defence 2nd edition, which is available from the Society bookshop.

Note that holders of Legal Services Commission criminal contracts must comply with the specialist quality mark standard F.5.2, which gives the requirements regarding selection of suppliers.

Q I have a client who has asked me to prepare an enduring power of attorney in favour of her daughter.

Does the Law Society produce any guidance notes?

A Yes, the Society has produced a booklet called Enduring Powers of Attorney.

This can be found on the Society's Web site or obtained from the practice advice service.

Q I work in a conveyancing practice and I am the training principal, supervising new trainees.

I wish to provide them with guidance regarding delays in conveyancing transactions.

Has the Law Society produced any information on this subject?

A A factsheet entitled Conveyancing Process - where delays can occur? can be found on the Society's Web site.

Q What are the usual quarter days?

A These are 25 March (Lady Day), 24 June (Midsummer Day), 29 September (Michealmas Day) and 25 December (Christmas Day).

This column is compiled by the Law Society's Practice Advice Service, tel: 0870 606 2522.

Send comments to Nasrin Master, Practice Advice Service Manager, The Law Society, 113 Chancery Lane, London WC2A 1PL.

The service endeavours to ensure that the information provided is correct but does not accept liability for error or omission.

This publication is intended for information purposes only and solicitors should not act on the basis of the information provided alone, without verifying it first.