In GR Solutions Ltd v HMRC (TC01928 – 12 April) a company director (H) purchased a BMW motor car in April 2004. In December 2004 he sold a 90% share in the car to the company (G). G paid for fuel but failed to account for Class 1A national insurance contributions. HMRC issued a ruling that G was required to pay Class 1A contributions in respect of the car and the fuel. The First-tier Tribunal dismissed G’s appeal. Judge Staker held that G had made the car available to H by virtue of his employment. Applying the principles laid down by Pumfrey J in Christensen v Vasili [2004] STC 935 the fact that H owned 10% of the car did not avoid the liability to national insurance contributions.
In GR Solutions Ltd v HMRC (TC01928 – 12 April) a company director (H) purchased a BMW motor car in April 2004. In December 2004 he sold a 90% share in the car to the company (G). G paid for fuel but failed to account for Class 1A national insurance contributions. HMRC issued a ruling that G was required to pay Class 1A contributions in respect of the car and the fuel. The First-tier Tribunal dismissed G’s appeal. Judge Staker held that G had made the car available to H by virtue of his employment. Applying the principles laid down by Pumfrey J in Christensen v Vasili [2004] STC 935 the fact that H owned 10% of the car did not avoid the liability to national insurance contributions.
