The difference lies in the origin and treatment of the cost:
Disbursement | Office Cost |
Paid to an external third party | Internal cost from firm’s own operations |
Recoverable at cost, with no markup | Not claimable as disbursement – recovered as part of professional fee |
Examples: Court filing fees, InfoTrack charges, barrister invoices | Examples: Photocopying, printing, internal file setup fees |
Law Society Guidance: Only external, third-party expenses can be categorised as disbursements. Internal charges should be treated as office costs or included in professional fees.
Think of Office Costs as time-entry equivalents—non-financial until billed.
