Febrey v Revenue & Customs [2014] UKFTT 401 (TC) (02 May 2014)

Febrey v Revenue & Customs [2014] UKFTT 401 (TC) (02 May 2014)

Appellant received payments from the company knowing that PAYE and NIC were not deducted, and sums allocated as consultancy fees and dividends were in fact income. Appellant is personally liable for underpaid tax and NIC as he knew or ought to have known of the employer's wilful failure to deduct.

Citation
[2014] UKFTT 401 (TC)
Parties
Appellant: M J Febrey; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
02 May 2014
Procedural Posture
Tax Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, National Insurance Contributions, PAYE, Director's Loan Account, Discovery Assessment, Personal Liability
Tax Law Income Tax National Insurance Contributions PAYE Director's Loan Account Discovery Assessment Personal Liability

Case Brief

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Parties

M J Febrey

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Appeal / Final Judgment

Legal Issues

  1. 1 Whether appellant's salary for 2007/08 was paid under deduction of PAYE and NIC as included in self-assessment return
  2. 2 Whether appellant is personally liable for PAYE and NIC unpaid on basis that he received relevant payments knowing employer wilfully failed to deduct tax and NIC
  3. 3 Whether sums allocated to director’s loan account as consultancy fees and dividends for 2005/06 and 2006/07 were in fact such fees and dividends or income of appellant

Ratio Decidendi

Appellant received payments from the company knowing that PAYE and NIC were not deducted, and sums allocated as consultancy fees and dividends were in fact income. Appellant is personally liable for underpaid tax and NIC as he knew or ought to have known of the employer's wilful failure to deduct.

Court Disposition

Appeal dismissed

Orders

  • Assessments for 2005/06, 2006/07, and 2007/08 confirmed
  • Amendment to 2007/08 self-assessment return confirmed