Exel Computer Systems PLC v Revenue & Customs (NATIONAL INSURANCE CONTRIBUTIONS : Exemptions and reliefs) [2018] UKFTT 346 (TC) (23 June 2018)

Exel Computer Systems PLC v Revenue & Customs (NATIONAL INSURANCE CONTRIBUTIONS : Exemptions and reliefs) [2018] UKFTT 346 (TC) (23 June 2018)

HMRC's claim for Class 1A NIC for tax year 2008-09 is time barred as no explicit agreement or specified payment on account was made to suspend limitation; provision of fuel to employees constitutes a taxable benefit as reimbursement was not made within the tax year, failing section 151 ITEPA requirements; section 8 decisions for other years are upheld as based on best judgment.

Citation
[2018] UKFTT 346
Parties
Appellant: Exel Computer Systems PLC; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
23 June 2018
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal allowed in part; HMRC's claim for 2008-09 is time barred, but NIC liability upheld for other years.
Legal Topics
National Insurance Contributions, Benefit in Kind, Limitation Period, Income Tax (earnings and Pensions) Act 2003, Fair Bargain Doctrine
Tax Law Employment Law National Insurance Contributions Benefit in Kind Limitation Period Income Tax (earnings and Pensions) Act 2003 Fair Bargain Doctrine

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Parties

Exel Computer Systems PLC

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether HMRC's claim for Class 1A NIC for tax year 2008-09 is time barred under the Limitation Act 1980
  2. 2 Whether provision of fuel to employees constitutes a taxable benefit under ITEPA 2003
  3. 3 Whether employees made good the expense of private fuel within the tax year as required by section 151 ITEPA 2003

Ratio Decidendi

HMRC's claim for Class 1A NIC for tax year 2008-09 is time barred as no explicit agreement or specified payment on account was made to suspend limitation; provision of fuel to employees constitutes a taxable benefit as reimbursement was not made within the tax year, failing section 151 ITEPA requirements; section 8 decisions for other years are upheld as based on best judgment.

Court Disposition

Appeal allowed in part; HMRC's claim for 2008-09 is time barred, but NIC liability upheld for other years.

Orders

  • NIC liability for tax year 2008-09 is discharged as time barred.
  • NIC liability for tax years 2005-06, 2006-07, 2009-10, and 2010-11 is upheld.