How can a taxpayer ever rely on HMRC guidance?

A recent case of disputed VAT on credit card payments led to doubts about when guidance issued by HMRC can be relied upon. Emma Rawson, technical officer at the Association of Taxation Technicians (ATT), examines the thorny issue this raises for taxpayers

The October 2018 decision of the Upper Tribunal in Vacation Rentals (UK) Limited v HMRC [2018] UKUT 0383 is a rare example of taxpayer success in a judicial review.

In the case, the Upper Tribunal determined that the taxpayer had a legitimate expectation that it would be taxed in accordance with the terms of HMRC’s guidance on the VAT treatment of card handling services, and that HMRC could not seek to apply a different treatment.

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