Payment by employer into funded retirement benefit scheme
In HMRC v Forde & McHugh Ltd (CA – 30 May) a company made payments to a funded unapproved retirement benefit scheme for the benefit of one of its directors. HMRC issued a determination that Class 1 national insurance contributions were due in respect of the payments.
The CA upheld the determination (by a 2-1 majority Rimer LJ dissenting). The majority of the CA held that Tullett & Tokyo Forex International Ltd v State for Social Security [2000] EWHC Admin 350 had been wrongly decided. Arden LJ observed that ‘the terms "emoluments" for the purposes of income tax and "earnings" for the purposes of national insurance do not have a common root’.
Accordingly ‘the tax base for income tax is not the same as the contributions base for national insurance’. The history of the relevant...
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Payment by employer into funded retirement benefit scheme
In HMRC v Forde & McHugh Ltd (CA – 30 May) a company made payments to a funded unapproved retirement benefit scheme for the benefit of one of its directors. HMRC issued a determination that Class 1 national insurance contributions were due in respect of the payments.
The CA upheld the determination (by a 2-1 majority Rimer LJ dissenting). The majority of the CA held that Tullett & Tokyo Forex International Ltd v State for Social Security [2000] EWHC Admin 350 had been wrongly decided. Arden LJ observed that ‘the terms "emoluments" for the purposes of income tax and "earnings" for the purposes of national insurance do not have a common root’.
Accordingly ‘the tax base for income tax is not the same as the contributions base for national insurance’. The history of the relevant...
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:
