VAT rate changes

We act for a number of professional services providers and note the reduction of VAT from 1 December 2008. According to the HMRC website this change will apply to all invoices raised on or after that date unless payment has been made before the end of November. A number of practical questions arise.

First that transitional rule appears to relate only to ‘continuous services’. What should professional firms do if billing (in December) for services provided (say) in November? Secondly what happens if a client completes two discrete jobs for one of its own clients say one in November and one in December?

Finally we act for a number of barristers and understand that they need not trigger a VAT invoice until payment is received. What should barristers do if they receive £1 000 + £175 VAT in accordance with a fee note issued...