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I haven't read all of the comments posted here so someone may have already commented in a similar vein. If I quote say £550 profit costs for a conveyancing purchase, presumably it is acceptable on the final bill to allocate £500 to the purchase and £50 for advising on the search results. After all, for years I have included advising on the searches as part of my retainer. Not to do so would be negligent.

If I add VAT onto both items exactly in accordance with my quote and show the disbursements paid out, how can HMRC then ask for extra VAT on search results. It is all part of the service for which I am adding the full amount of VAT. This is a puzzling decision.