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Ahmed Brothers (t/a First Stop 2 Shop) v HMRC

In Ahmed Brothers (t/a First Stop 2 Shop) v HMRC (TC02222 – 14 September) a retail partnership made an Astra car available for two of its employees who were also the daughter and son-in-law of one of the partners. HMRC issued an assessment charging national insurance contributions and imposing penalties. The partnership appealed contending that the Astra should be treated as a pooled car within ITEPA 2003 s 167. The First-tier Tribunal (FTT) rejected this contention and dismissed the appeal.

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Why it matters: Where an employer makes a car available for use by an employee this is normally treated as a benefit provided for the employee and the employer is normally required to account for national insurance contributions. ITEPA 2003 s 167 provides an exception to...

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