S Barnard Ltd v Revenue & Customs [2010] UKFTT 187 (TC) (26 April 2010)

S Barnard Ltd v Revenue & Customs [2010] UKFTT 187 (TC) (26 April 2010)

There was insufficient evidence to establish that provision of an equivalent car is in accordance with normal commercial practice for an employment of the kind held by Mrs Barnard; therefore, the original HMRC decision stands.

Citation
[2010] UKFTT 187 (TC)
Parties
Appellant: S Barnard Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (NIC)
Jurisdiction
United Kingdom
Judgment Date
26 April 2010
Procedural Posture
Appeal Against NIC Liability and Penalty Determination / First Tier Tribunal (tax), Final Decision
Outcome
Appeal dismissed
Legal Topics
National Insurance Contributions, Employment Benefits, Provision of Company Car, Income Tax (earnings and Pensions) Act 2003, Social Security Contributions and Benefits Act 1992, Social Security (contributions) Regulations 2001
Tax Law Employment Law Social Security Law National Insurance Contributions Employment Benefits Provision of Company Car Income Tax (earnings and Pensions) Act 2003 Social Security Contributions and Benefits Act 1992 +1 more

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Parties

S Barnard Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (NIC)

Respondents

Procedural Posture

Appeal Against NIC Liability and Penalty Determination / First Tier Tribunal (tax), Final Decision

Legal Issues

  1. 1 Whether provision of a car to an employee's family member is in accordance with normal commercial practice for such employment under s169(4) ITEPA 2003
  2. 2 Whether sufficient evidence exists to displace HMRC's decision on Class 1A NIC liability and penalty

Ratio Decidendi

There was insufficient evidence to establish that provision of an equivalent car is in accordance with normal commercial practice for an employment of the kind held by Mrs Barnard; therefore, the original HMRC decision stands.

Court Disposition

Appeal dismissed

Orders

  • Original HMRC decision on Class 1A NIC liability confirmed
  • Penalty determination confirmed