John Messore and Peter Moroz review a decision of the Court of Appeal in which it was held that ‘round sum allowances’ designed to do no more than compensate employees for business travel were not earnings for NIC purposes
In the Court of Appeal case of Cheshire Employer and Skills Development Ltd (formerly Total People Ltd) v HMRC [2012] EWCA Civ 1429 the taxpayer has won a long-running dispute with HMRC regarding reclaim of NIC for the last six years on car allowance payments.
To recap Cheshire Employer And Skills Development Ltd (CESDL) (formerly Total People Ltd) operated a scheme whereby staff either claimed 40p per business mile if they drove below 2 500 business miles per annum or...
