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Since the Brabners decision and in the absence of any clear advice from the Law Society we have charged VAT on all activities involved in the conveyancing process with the exception of SDLT and Land Registry Fees including all searches including land charges OSI etc and indemnity insurance policies (as we have to advise on them). We recover the VAT paid to the search provider and charge VAT on the whole of the invoice received. There are two consequences (1) we make more money - the vat element of the recovery that previously we did not recover but just passed on to the client (2) we lose work to competitors who do not charge any vat. Needless to say we are placing the VAT recovered in a separate account for when w have to repay/pay the monies following further ruling! As an aside a client who posts items to customers has just been charged £22,000.00 vat on postages despite not charging this to his client. It appears that HMRC is not looking to help SME's!

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