Nick Cronkshaw and Gary Barnett (Simmons & Simmons) provide your monthly review of the VAT developments that matter.
VAT and salary sacrifice
In HMRC v Pertemps Ltd [2019] UKUT 234 the Upper Tribunal (UT) has held that salary sacrifice arrangements put in place by an employer did not involve any supply of services by that employer to its employees.
Pertemps was an employment business that provided permanent and temporary workers to clients. It offered its employees an optional alternative salary sacrifice scheme (MAP) pursuant to which its workers could give up part of their salary (out of which they would normally have to meet their own travel and subsistence expenses) in return for receiving direct payments of travel and subsistence expenses from Pertemps (as employer) without deduction of tax under an HMRC dispensation.
The benefit of MAP...
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Nick Cronkshaw and Gary Barnett (Simmons & Simmons) provide your monthly review of the VAT developments that matter.
VAT and salary sacrifice
In HMRC v Pertemps Ltd [2019] UKUT 234 the Upper Tribunal (UT) has held that salary sacrifice arrangements put in place by an employer did not involve any supply of services by that employer to its employees.
Pertemps was an employment business that provided permanent and temporary workers to clients. It offered its employees an optional alternative salary sacrifice scheme (MAP) pursuant to which its workers could give up part of their salary (out of which they would normally have to meet their own travel and subsistence expenses) in return for receiving direct payments of travel and subsistence expenses from Pertemps (as employer) without deduction of tax under an HMRC dispensation.
The benefit of MAP...
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:
