Kent v Revenue & Customs [2009] UKFTT 358 (TC) (11 December 2009)

Kent v Revenue & Customs [2009] UKFTT 358 (TC) (11 December 2009)

The Tribunal found the Appellant was not genuinely employed by Holme Limited; the employment contract was a sham, lacking mutual obligation and control. The pension transfer was unauthorised under s647 ICTA 1988, making the Appellant liable for tax. Directions under Regulation 72A PAYE Regulations were properly made, and the penalty for negligent tax return was justified.

Citation
[2009] UKFTT 358
Parties
Appellant: Benjamin James Kent; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 December 2009
Procedural Posture
Tax Appeal / Final Judgment
Outcome
Appeal dismissed; HMRC's decisions upheld.
Legal Topics
Income Tax, Pension Schemes, PAYE Regulations, Employment Status, Penalties for Incorrect Tax Returns
Tax Law Employment Law Income Tax Pension Schemes PAYE Regulations Employment Status Penalties for Incorrect Tax Returns

Case Brief

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Parties

Benjamin James Kent

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Final Judgment

Legal Issues

  1. 1 Whether the transfer out of authorised pension schemes was authorised under scheme rules
  2. 2 Whether the Appellant was genuinely employed by Holme Limited
  3. 3 Whether Directions under Regulation 72A PAYE Regulations were properly made

Ratio Decidendi

The Tribunal found the Appellant was not genuinely employed by Holme Limited; the employment contract was a sham, lacking mutual obligation and control. The pension transfer was unauthorised under s647 ICTA 1988, making the Appellant liable for tax. Directions under Regulation 72A PAYE Regulations were properly made, and the penalty for negligent tax return was justified.

Court Disposition

Appeal dismissed; HMRC's decisions upheld.

Orders

  • Appellant liable for tax assessment of £18,568.15 under s647 ICTA 1988.
  • Directions under Regulation 72A PAYE Regulations upheld; pension trustees not liable for PAYE.