QUESTION OF ETHICS

Q I am a solicitor employed in private practice.

Occasionally I am asked to administer oaths.

I am not really sure where the fee should go, can you help please?

A Oath fees are generally regarded as deriving from the personal qualification of a solicitor.

Therefore, a solicitor who administers oaths would receive the fees in a personal capacity.

Such fees would not go through the books of the firm but would need to be disclosed on the income tax return of the solicitor.

If, on the other hand, an assistant solicitor is required to account to the firm for such fees, then a bill should be issued and the firm will be required to account for VAT on the fee.

Partners and sole practitioners who are registered for VAT should account for VAT in respect of any oath fees that they administer.Please noteLimited liability partnerships (LLPs)The legislative changes which provide for LLPs came into force on 6 April 2001.

For practitioners to 'convert' to LLP status, the process will involve two successive steps - registration as an LLP at Companies House followed by recognition as a recognised body by the Law Society under the new Solicitors' Incorporated Practice Rules 2001.

These rules also came into force on 6 April 2001 and now regulate all incorporated practices, whether companies or LLPs.

An information pack including the new rules is available from professional ethics.

l Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch;tel: 020 7242 1222.