In Kuehne & Nagel Drinks Logistics Ltd v HMRC (and related appeals) (CA – 26 January) a company (S) carried on a drinks distribution business. In 2006 it transferred that business to another company (K). The transfer fell within the Transfer of Undertakings (Protection of Employment) Regulations SI 2006/246. Some of the employees were concerned because K’s pension scheme appeared to be less generous than S’s pension scheme. Following negotiations K made lump sum payments to the transferring employees. HMRC issued a ruling that K was liable to pay national insurance contributions on these payments and amended the employees’ returns on the basis that they were chargeable to income tax. K and two of the employees appealed. The First-tier Tribunal dismissed the appeals and the Upper Tribunal and the CA unanimously upheld this decision. Mummery LJ held that ‘when considering...
