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FL Memo Ltd © 2007

VAT Memo 2007-2008 Newsletter Issue 1

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Simplification  

 

Flat rate scheme and barristers

See VM ¶4648, ¶7762

Barristers whose chambers apply method 3 of accounting for common expenses may use the flat rate scheme. Input tax must be apportioned, and may only be claimed by barristers not using the scheme.

 

 

 

 

 

 

Notice 733 para 13 (revised)

 

 

 

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NEWS

Example A chambers has ten barristers, two of whom use the flat rate scheme. The common fund has paid £11,750, including VAT of £1,750, on goods purchased.
If 30% of the input tax is apportioned to the two barristers on the flat rate scheme, the chambers, through the nominated member of the common fund, can claim 70% (i.e. £1,225 of the VAT).