Additional things Flashcards
What falls under client money?
Money for the deposit and money generally on account of costs and disbursements both fall within the definition of client money
Where must client money be paid into?
Client money must be paid promptly into the client account
Exceptions to where client money must be paid
The firm can agree an alternative arrangement with the client
Where can disbursements be paid from?
Disbursements can be paid from either the business bank account or the client bank account
When must the firm charge VAT?
On any supply made in the course of a business
What is business money?
Money in respect of disbursements whether billed or paid is business money and cheques made to third parties e.g HMRC cannot be paid into a firm’s account at all and must be sent to the third party
What is money received in payment of a bill?
It is not client money and so cannot be paid into the client bank account
Money held in a joint account
Does not fall within the definition of a client account so only limited elements of the SRA accounts rules will apply
What money is money received in payment of a bill
Not client money so cannot be paid into the client bank account
Fee and disbursement - what money is it
Not client money.
Mixed receipt
Put it straight in the client account and then transfer the business money into the business bank account promptly
Money received in payment of a hill before delivery of said bill
Client money
