The case surrounded the national insurance (NI) relief the taxpayer tried to utilise against the cash allowance paid to staff in lieu of a company car.
The Court of Appeal decision was on a point of law and cannot be taken as a ‘green light’ for others to try to make similar claims. It is clear HM Revenue and Customs (HMRC) will not accept the decision of the court because to do so would put the whole earnings period basis of calculation for NI at risk.
It will be interesting to see what HMRC’s next move will be.
Alastair Kendrick is tax director at MacIntyre Hudson
