Revenue & Customs Brief 15/09
Extra Statutory Concession (ESC) 3.5-Misdirection
ESC 3.5 Misdirection gave the view of HM Revenue & Customs (HMRC) of the circumstances in which they would regard themselves as bound by incorrect advice given to customers in respect of Value Added Tax (VAT) and Insurance Premium Tax (IPT).
HMRC are required by law to collect all the taxes, duties and levies under their care, but they have a limited degree of discretion in specific circumstances. In recent years, there have been a number of cases before the courts which have defined the circumstances in which HMRC can regard themselves as bound by incorrect advice. More information is available on the Internet When you can rely on advice provided by HMRC. ESC 3.5 Misdirection is therefore no longer necessary because it has been overtaken by other published guidance.
HMRC will not accept any further claims under this ESC from 1 April 2009. Customers who think they have received incorrect advice from HMRC in respect of VAT or IPT should see the guidance above for further help, or contact the National Advice Service on Tel 0845 010 9000. There will be no change in service to our customers, as they will still be able to ask us to consider their case if they feel they have been wrongly advised by HMRC.
This does not affect customers who think they have over declared tax, as such cases will continue to be considered under the relevant sections of the Value Added Tax Act 1994, and Finance Acts 1994 and 1997.
Issued 27 March 2009.
