Mark Groom reviews the decision of the Upper Tribunal in Total People Ltd v HMRC
The case of Total People Ltd v HMRC [2010] UKFTT 379 (TC) highlights some fundamental principles of the NIC legislation as well as the importance of ensuring that the intended purpose of payments to employees is not compromised by the manner in which those payments are communicated documented and perceived.
This case does not concern a complex scheme of avoidance but simply relates to a question of fact as to the nature of commonplace payments made to employees in relation to their private vehicles. If the payments made are earnings they are subject to NI in full.
If they qualify as ‘relevant motoring expenditure’ (RME) they are treated as earnings but only to the extent they exceed an amount known as the ‘qualifying amount’ (QA). The amount of...
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Mark Groom reviews the decision of the Upper Tribunal in Total People Ltd v HMRC
The case of Total People Ltd v HMRC [2010] UKFTT 379 (TC) highlights some fundamental principles of the NIC legislation as well as the importance of ensuring that the intended purpose of payments to employees is not compromised by the manner in which those payments are communicated documented and perceived.
This case does not concern a complex scheme of avoidance but simply relates to a question of fact as to the nature of commonplace payments made to employees in relation to their private vehicles. If the payments made are earnings they are subject to NI in full.
If they qualify as ‘relevant motoring expenditure’ (RME) they are treated as earnings but only to the extent they exceed an amount known as the ‘qualifying amount’ (QA). The amount of...
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:
