West v Revenue and Customs (INCOME TAX/CORPORATION TAX : Employment income) [2016] UKFTT 536 (TC) (03 August 2016)

West v Revenue and Customs (INCOME TAX/CORPORATION TAX : Employment income) [2016] UKFTT 536 (TC) (03 August 2016)

Tax and NICs were properly deducted from director's remuneration as shown in company accounts and forms; no wilful failure by employer; company unable to pay due to insolvency; preconditions for transfer of liability under reg 72 and reg 86 not fulfilled; liability cannot be transferred to employee.

Citation
[2016] UKFTT 536 (TC)
Parties
Appellant: Stephen West; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
03 August 2016
Procedural Posture
Income Tax/national Insurance Contributions Appeal / First Tier Tribunal (tax Chamber) Final Decision
Outcome
Appeal allowed
Legal Topics
PAYE Liability Transfer, National Insurance Contributions, Director's Remuneration, Liquidation, Wilful Failure to Deduct/pay Tax
Tax Law Employment Law PAYE Liability Transfer National Insurance Contributions Director's Remuneration Liquidation Wilful Failure to Deduct/pay Tax

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Parties

Stephen West

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/national Insurance Contributions Appeal / First Tier Tribunal (tax Chamber) Final Decision

Legal Issues

  1. 1 Whether PAYE tax was deducted from director's remuneration
  2. 2 Whether employer wilfully failed to deduct/pay tax and NICs
  3. 3 Whether liability for unpaid tax/NICs can be transferred to employee under reg 72 and reg 86

Ratio Decidendi

Tax and NICs were properly deducted from director's remuneration as shown in company accounts and forms; no wilful failure by employer; company unable to pay due to insolvency; preconditions for transfer of liability under reg 72 and reg 86 not fulfilled; liability cannot be transferred to employee.

Court Disposition

Appeal allowed

Orders

  • HMRC's direction under reg 72(5) Condition B, assessment for 2010-11, closure notice for 2011-12, and decision under s 8(1)(c) SSCTFA 1999 are set aside; liability not transferred to appellant.