Robert Waterson and Nicole Kostic (RPC) examine an Upper Tribunal decision on salary sacrifice arrangements and economic activity.
The Upper Tribunal’s recent decision in HMRC v Pertemps Ltd [2019] UKUT 234 provides guidance on salary sacrifice arrangements and their effectiveness. Interestingly it considers the circumstances where benefits provided in return for a reduction in salary are deemed to be consideration for a supply. The decision also adds another layer to the developing body of case law which considers what constitutes an ‘economic activity’ – a perennial VAT issue that goes to the very heart of the tax.
Pertemps: the facts
Pertemps Ltd (the taxpayer) was a recruitment agency which introduced a ‘mobile advantage plan’ (MAP). This was an optional scheme that provided eligible employees with travel and subsistence expenses by way of salary sacrifice. The employees were flexible employees...
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Robert Waterson and Nicole Kostic (RPC) examine an Upper Tribunal decision on salary sacrifice arrangements and economic activity.
The Upper Tribunal’s recent decision in HMRC v Pertemps Ltd [2019] UKUT 234 provides guidance on salary sacrifice arrangements and their effectiveness. Interestingly it considers the circumstances where benefits provided in return for a reduction in salary are deemed to be consideration for a supply. The decision also adds another layer to the developing body of case law which considers what constitutes an ‘economic activity’ – a perennial VAT issue that goes to the very heart of the tax.
Pertemps: the facts
Pertemps Ltd (the taxpayer) was a recruitment agency which introduced a ‘mobile advantage plan’ (MAP). This was an optional scheme that provided eligible employees with travel and subsistence expenses by way of salary sacrifice. The employees were flexible employees...
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:
