Ben Elliott and Sam Glover (Pump Court Tax Chambers) review recent cases clarifying when taxpayers have a legitimate expectation in the context of VAT.
Legitimate expectation is of critical importance in the context of VAT. Taxpayers will naturally rely to some extent on HMRC’s published notices manuals and concessions but may also have obtained specific clearances (or rulings) to aid them in applying the correct tax treatment to their business transactions. In addition to such guidance they may also have regular contact with HMRC in the form of inspections or investigations which may provide some degree of confidence that their business affairs are VAT compliant.
It may therefore come as an unpleasant surprise if HMRC subsequently challenge a taxpayer’s VAT treatment and seek to assess them in relation to transactions going back a number of years. In such circumstances the taxpayer might choose to argue not only that...
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Ben Elliott and Sam Glover (Pump Court Tax Chambers) review recent cases clarifying when taxpayers have a legitimate expectation in the context of VAT.
Legitimate expectation is of critical importance in the context of VAT. Taxpayers will naturally rely to some extent on HMRC’s published notices manuals and concessions but may also have obtained specific clearances (or rulings) to aid them in applying the correct tax treatment to their business transactions. In addition to such guidance they may also have regular contact with HMRC in the form of inspections or investigations which may provide some degree of confidence that their business affairs are VAT compliant.
It may therefore come as an unpleasant surprise if HMRC subsequently challenge a taxpayer’s VAT treatment and seek to assess them in relation to transactions going back a number of years. In such circumstances the taxpayer might choose to argue not only that...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
