Aramark Limited v The Commissioners for HMRC

Aramark Limited v The Commissioners for HMRC

On the facts, Aramark Limited exercised substantive day-to-day control over OSI’s employees, who were made available and rendered personal service for Aramark’s business. The arrangements did not constitute genuine commercial subcontracting but amounted to a secondment-like relationship. Therefore, the Host Employer Provisions applied and Aramark Limited is liable for secondary Class 1 National Insurance Contributions for the relevant periods.

Parties
Appellant: Aramark Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
16 September 2024
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
National Insurance Contributions, Host Employer Regulation, Secondary Class 1 Nics, Employment Status, Subcontracting Arrangements, Statutory Interpretation
Tax Law Employment Law Social Security Law National Insurance Contributions Host Employer Regulation Secondary Class 1 Nics Employment Status Subcontracting Arrangements +1 more

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Parties

Aramark Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether Aramark Limited is liable under the Host Employer Provisions to pay secondary Class 1 National Insurance Contributions for OSI employees during the relevant periods.

Ratio Decidendi

On the facts, Aramark Limited exercised substantive day-to-day control over OSI’s employees, who were made available and rendered personal service for Aramark’s business. The arrangements did not constitute genuine commercial subcontracting but amounted to a secondment-like relationship. Therefore, the Host Employer Provisions applied and Aramark Limited is liable for secondary Class 1 National Insurance Contributions for the relevant periods.

Court Disposition

Appeal dismissed

Orders

  • Aramark Limited is liable to pay secondary Class 1 National Insurance Contributions for the relevant periods as determined by HMRC.