Tax advisers may rely on the HMRC manuals at their own risk and peril. Here is an interesting case decided by the First-tier Tribunal early this year (Hanover Company Services Ltd Vs HMRC UKFTT 256 – 2010). The tribunal decided that the \u2018relevant qualification\u2019 carried in the HMRC manuals provides the taxpayers with sufficient reason NOT to have a \u2018legitimate expectation\u2019 from HMRC that it would be bound by the guidance carried in its own manuals. HMRC manuals carry the following qualification in the introductory pages:\u201cit should not be assumed that the guidance is comprehensive nor that it will provide a definitive answer in every case\u201d.<\/p>\n
The company in question provided company formation services at standard rate VAT whilst it supplied printed material at zero-rate VAT following the HMRC guidance that appeared in the manuals. Specifically the manual stated that provision of printed material by a supplier of company formation services could be zero rated provided that the prints were separately itemised on the invoice. Although the supplier company followed the guidance the tribunal held that because it was not the company itself but their accountants that had relied on the guidance and because of the \u2018relevant qualification\u2019 carried in the manuals the company in question could not have a claim of \u2018legitimate expectation\u2019 from HMRC to follow its own guidance!<\/p>\n","protected":false},"excerpt":{"rendered":"
Tax advisers may rely on the HMRC manuals at their own risk and peril. Here is an interesting case decided by the First-tier Tribunal early this year (Hanover Company Services Ltd Vs HMRC UKFTT 256 – 2010). The tribunal decided that the \u2018relevant qualification\u2019 carried in the HMRC manuals provides the taxpayers with sufficient reason […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[],"class_list":["post-430","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n