VAT on costs checker (PD 44 para 2.3)
check_vat_on_costsWorks out whether a receiving party in England and Wales can include VAT in its claim for costs against the paying party, and how much: VAT is not claimed if the receiving party can recover it as input tax, and only the irrecoverable proportion where it recovers part (PD 44 para 2.3); input tax means VAT on services for its business, and only the business share where the services were used partly for it (VAT Act 1994 s.24(1) and (5); HMRC VIT13600); a VAT group recovers for its members (s.43); and the paying party cannot reclaim VAT on the other side's costs (VATSC11531). Covers public bodies that get VAT refunded under s.33 or s.41(3) (in our reading they should not claim it: PD 44 para 2.4), a party's own employed lawyers (no VAT on their work: HMRC VATSC11533; PD 44 para 2.13 for Government Departments), lawyers who charged no UK VAT, litigants in person (no VAT on their own time, para 2.12), pro bono orders under s.194(3) LSA 2007 (2.14), court fees and other disbursements (2.11), fixed costs net of VAT under CPR 45.2 as amended from 1 October 2024, the Part 45 Section II sums (no VAT added: r.45.16), IPEC scale costs (CPR 46.21(6)) and insurer-funded or subrogated claims (the insured's position counts: VIT13500). With figures net of VAT, returns the VAT claimable on each item at 20% and in total, and the Precedent F(6) certificate where VAT is disputed (PD 44 para 2.5). It never drafts or values a bill.
Tool call template
Replace each placeholder with a value matching the input schema. Only required parameters are included; add optional parameters as needed.
{
"id": 1,
"jsonrpc": "2.0",
"method": "tools/call",
"params": {
"arguments": {
"rep": "<rep>"
},
"name": "check_vat_on_costs"
}
}Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| rep | Yes | Who did the receiving party's legal work: "lawyers" (Solicitors or other lawyers it pays), "employed" (Its own employed lawyers (an in-house team, including a Government Department’s legal staff)), "self" (Itself, as a litigant in person), "pro-bono" (Pro bono lawyers (an order under s.194(3) of the Legal Services Act 2007)). | |
| profit | No | Profit costs, fixed costs or scale costs, net of VAT (in-house lawyers or a litigant in person: the value of their own time), in pounds (e.g. "12500.50"). | |
| regime | No | How the costs are worked out: "assessed" (Assessed costs (standard or indemnity basis)), "fixed" (Fixed costs under CPR 45.2’s list (rules 45.8 and 45.15A; fast and intermediate track FRC, RTA and EL/PL portal, NIHL, fixed costs determinations)), "section-ii" (Fixed issue, judgment or enforcement costs (Part 45 Section II, including small claims issue costs)), "ipec" (IPEC scale costs). | |
| counsel | No | Counsel's fees, net of VAT, in pounds (e.g. "12500.50"). | |
| purpose | No | Where registered: whether the legal services were for the purpose of its business: "business" (For its business), "non-business" (Not for its business (personal use, or a non-business activity such as a charity’s free services)), "partly", "unsure" (Not sure). | |
| expenses | No | The firm's own travel, postage, telephone and similar, and charges supplied to the firm rather than the client, net of VAT, in pounds (e.g. "12500.50"). | |
| recovery | No | Where registered and wholly or partly for its business: how much of the VAT on these costs it can recover as input tax (Flat Rate Scheme: none): "full" (All of it), "partial" (Part of it), "none" (None of it), "unsure" (Not sure). | |
| courtFees | No | Court fees, in pounds (e.g. "12500.50"). | |
| counselVat | No | Whether counsel charged VAT. | |
| lawyersVat | No | Where rep is "lawyers": whether they charged the receiving party UK VAT (assumed yes if left out). | |
| publicBody | No | Where rep is "lawyers" or "employed": whether the receiving party is a public body that gets VAT refunded under s.33 or s.41(3) of the VAT Act 1994 (a council, government department or NHS body; not a housing association or charity). | |
| registered | No | Whether the receiving party (the party whose costs are paid) is registered for VAT, on its own or in a VAT group. | |
| recoverPercent | No | Where recovery is "partial": the percentage of the VAT on these costs it can recover, e.g. "60" | |
| businessPercent | No | Where purpose is "partly": the business share of the use of the legal services, as a percentage, e.g. "70" | |
| disbursementVat | No | The VAT third parties (experts, medical records) charged on disbursements, as a sum, in pounds (e.g. "12500.50"). |