Practice Note Updates.

05/01/10

A. VAT on Legal Aid work– current version 15 December 2009. The Legal Aid contracting system has evolved since monthly payment arrangements were first introduced by the Legal Services Commission.
The treatment of these regular payments, previously known as standard monthly payments, was changed by rule 21(2) of the Solicitors' Accounts Rules 1998 that came into effect on 1 May 2005. You must pay these into your office account, rather than choosing to pay them into either your client or office account.
To reflect rule 21(2) we have launched a simplified method of accounting for VAT which is described in this practice note. This replaces our 2001 guidance.
We recommend that you refer to this online version to stay up-to-date with changes.
VAT on Legal Aid practice note link

B. VAT Change – current version 15 December 2009. Since 1 December 2008 there has been a temporary reduction in the standard rate of VAT from 17.5 per cent to 15 per cent. The Pre-budget Report on 9 December 2009 confirmed that the standard rate of VAT returns to 17.5 per cent on 1 January 2010.
This practice note provides advice on charging the correct rate of VAT on the services you make both before or after 1 January 2010 and how to deal with those services that you started before but completed after the rate change.
Note: Some queries have been raised in relation to paragraph 7.1 of the Practice Note. Whilst we are seeking to clarify the position with HMRC Stamp Taxes and HMRC VAT you should refrain from making claims for repayments of SDLT. We will resolve this in the New Year.
VAT Change practice note link

C. Virtual Court Hearings – current version 14 December 2009. The Office of Criminal Justice Reform intends to conduct a widespread pilot of the virtual first hearing system, whereby the conduct of the first Magistrates' Court hearing will take place with the defendant appearing in court by a video link from the police station.
This practice note outlines what you should consider before advising a defendant to consent to proceed in this way.
It has been updated to address safety issues for solicitors.
Virtual Court Hearings practice note link

To access practice notes go to www.lawsociety.org.uk , then click on Practice Notes on the right hand side of the home page.