MyPay Limited v The Commissioners for HMRC

MyPay Limited v The Commissioners for HMRC

The Tribunal refused Mypay's application to amend its grounds of appeal because the proposed alternative ground—that there was no contract of employment at all—lacked any real prospect of success. The contractual documentation and conduct of the parties were consistent only with the existence of either an overarching contract of employment or separate contracts for each assignment. The amendment was also refused on the basis of prejudice to HMRC, who would be unable to recover tax and national insurance from other liable parties due to statutory time limits if the amendment were allowed.

Parties
Appellant: Mypay Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Tax Appeal / Application to Amend Grounds of Appeal
Outcome
Application to amend grounds of appeal refused
Legal Topics
PAYE Regulations, National Insurance Contributions, Overarching Contract of Employment, Amendment of Pleadings, Procedural Fairness
Tax Law Employment Law Civil Procedure PAYE Regulations National Insurance Contributions Overarching Contract of Employment Amendment of Pleadings Procedural Fairness

Case Brief

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Parties

Mypay Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Application to Amend Grounds of Appeal

Legal Issues

  1. 1 Whether Mypay Limited should be permitted to amend its grounds of appeal to introduce an alternative argument that there was no contract of employment at all between Mypay and the workers if the Tribunal accepts HMRC's approach to contractual construction
  2. 2 Whether the proposed amendment has a real prospect of success
  3. 3 Whether the timing and prejudice to the parties justify granting or refusing the amendment

Ratio Decidendi

The Tribunal refused Mypay's application to amend its grounds of appeal because the proposed alternative ground—that there was no contract of employment at all—lacked any real prospect of success. The contractual documentation and conduct of the parties were consistent only with the existence of either an overarching contract of employment or separate contracts for each assignment. The amendment was also refused on the basis of prejudice to HMRC, who would be unable to recover tax and national insurance from other liable parties due to statutory time limits if the amendment were allowed.

Court Disposition

Application to amend grounds of appeal refused

Orders

  • Mypay is refused permission to amend its grounds of appeal to rely on the Additional Ground.
  • Mypay is granted permission to rely on grounds 3 and 4 in its draft amended grounds of appeal dated 24 January 2022.