Guidance and the taxpayer Public Notice 700

August saw the updating of the well-known 'VAT Guide' Notice 700 which is a notice exceeding 200 pages of general observations about the rules for VAT. Paragraph 2.5 of the new edition revises guidance as to when you can rely on advice from HMRC. It states that 'as a general rule, HMRC will be bound by such advice' where the advice is 'clear, unequivocal, and explicit' and the taxpayer can demonstrate that he reasonably relied on the advice, had made a full disclosure of the relevant facts, and where application of the legislation as it ought to have been reflected, would be to the taxpayer's financial detriment.