Macleod and Mitchell Contractors Ltd and another v Revenue and Customs Commissioners

Income tax – Emoluments from office or employment. It was well established that the purpose of an employer in granting a benefit to an employee was an important factor in determining whether it was properly to be regarded as a reward or return for the employee's services. Consequently, the First-tier Tribunal (Tax Chamber) had misdirected itself in treating the taxpayer company's intention as an irrelevant consideration in deciding whether the transactions in question had conferred a profit or benefit on the appellant employee that had derived 'from' his employment with the employer company. Accordingly, the Upper Tribunal (Tax Chamber) allowed the company and the employee's appeals against the assessments made by the Revenue and Customs Commissioners in relation to income tax in the employee's case, and for payment of primary and secondary Class 1 national insurance contributions in the company's case.

Category: