In Laing O’Rourke Services Ltd v HMRC; HMRC v Willmott Dixon Holdings Ltd [2023] UKUT 155 (TCC) (10 July 2023) the UT upheld claims by two construction companies for repayment of NICs previously made in respect of car allowances paid to employees. The two appeals had been heard separately before the FTT where contrasting decisions had been reached.
Both companies operated broadly similar schemes under which eligible employees could receive a cash allowance as an alternative to a company car. Employees had to demonstrate that they had a valid driving licence and a car available for business use but the payments were not dependent on business mileage. Instead the amount depended on the seniority of the employee and many recipients in fact had no business mileage. Employees within the schemes also received business mileage payments.
The UT held that the car allowances were ‘relevant motoring expenditure’ (RME) which were...
