Cheshire Employer & Skills Development Ltd (aka Total People Ltd) v HMRC

In Cheshire Employer & Skills Development Ltd (aka Total People Ltd) v HMRC (CA – 6 November) a company provided the services of apprentices and trainees to employers and supervised their training. It employed about 160 training advisors who had to visit the trainees at their places of work. It paid these advisors a mileage allowance plus an annual payment which was described as a ‘lump sum’ but was actually paid in 12 monthly instalments. Initially it accounted for national insurance contributions on these payments. Subsequently it submitted a repayment claim on the basis that the effect of Social Security (Contributions) Regulations SI 2001/1004 reg 22A was that it had not been required to pay national insurance contributions on these payments. HMRC rejected the claim on the basis that the payments were not ‘relevant motoring expenditure’ within reg 22A(3) because they were not...