HMRC wins Court of Appeal case on NI payments

Jenna Towler
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National Insurance (NI) contributions are due on pre-6 April 2006 employer payments into funded unapproved retirement benefit schemes (FURBS), the Court of Appeal has ruled.

In Forde and McHugh (FML) v the Commissioners of HM Revenue & Customs (HMRC), HMRC imposed an employer NI contribution liability on £163,000 paid into a FURBS during the 2002/03 tax year, only to lose on FML's appeal to the Upper Tribunal. But the Upper Tribunal's decision has now been reversed -with one judge stating five reasons as to why these contributions constituted earnings paid to or for the benefit of McHugh and were therefore subject to NI. Consultant LCP said HMRC would be pleased with this result. "It now appears that they could otherwise have been exposed to repayment ...

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