A statement concerning VAT concessions released by Customs and Excise has caused widespread confusion, a tax expert has claimed.

John Crawford, managing director of the VAT Consultancy, urged agencies to contact their accountants to see whether they qualify for the reduction, which applies for 18 months, from 6 July this year until 6 January 2006.

Crawford said: “We have had some confusion reading this ourselves; it is typical of the government. The taxpayer must be able to read the regulations and understand them so they are able to work out what to do.

“It is a grey area and everything must be looked at on a case-by-case basis,” he said.