VAT and interest Question – answered
Once more the question of interest on costs and that of VAT is one that is still a puzzle to many.
However the guidance is clear and while there may be an appeal on Motto for now the direction is clear enough.
Interest on costs whether funded by way of a CFA or not is still at the discretion of the Costs Officer on Assessment (CPR 48.3) and thus it is still worth claiming the same. Interest can of course amount to a considerable sum.
VAT is an elective decision and thus again should you wish to charge VAT at 20% throughout on matters where a CFA has been used the decision is practice by practice and not determined by years where the VAT was actually at a different rate.
Both these items can have a considerable effect on recovery.
We ensure that interest on costs, where appropriate, is always sought.
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