Blue Yearnings Ltd v Revenue and Customs (INCOME TAX/CORPORATION TAX : Employment income) [2016] UKFTT 167 (TC) (08 March 2016)

Blue Yearnings Ltd v Revenue and Customs (INCOME TAX/CORPORATION TAX : Employment income) [2016] UKFTT 167 (TC) (08 March 2016)

The Tribunal found that the yacht was owned entirely by Blue Yearnings Limited throughout the relevant period, and that the benefit in kind calculation under s205 ITEPA 2003 was correct. Therefore, the company was liable for the assessed National Insurance contributions.

Citation
[2016] UKFTT 167 (TC)
Parties
Appellant: Blue Yearnings Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
08 March 2016
Procedural Posture
Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Corporation Tax, Employment Income, National Insurance Contributions, Benefit in Kind
Tax Law Employment Law Income Tax Corporation Tax Employment Income National Insurance Contributions Benefit in Kind

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Parties

Blue Yearnings Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether Blue Yearnings Limited is liable to pay Class 1 National Insurance contributions for the private use of a yacht by its director
  2. 2 Whether the yacht was owned solely by the company or jointly with the director
  3. 3 Whether a benefit in kind arises under s205 ITEPA 2003

Ratio Decidendi

The Tribunal found that the yacht was owned entirely by Blue Yearnings Limited throughout the relevant period, and that the benefit in kind calculation under s205 ITEPA 2003 was correct. Therefore, the company was liable for the assessed National Insurance contributions.

Court Disposition

Appeal dismissed

Orders

  • Blue Yearnings Limited is liable to pay Class 1 National Insurance contributions of £9,459 for the period 6 April 2011 to 5 April 2014 in connection with the private use of the yacht 'Space Race'.