In Macleod and Mitchell Contractors and W Mitchell v HMRC [2019] UKUT 46 (13 February 2019) the UT found that the payment of insurance premiums by the company had not represented earnings of its director.
The appeals concerned the appropriate treatment of premiums paid by Macleod and Mitchell Contractors (MMCL) on several insurance policies. In each case the insured was the second appellant Mr Mitchell who was the sole director and shareholder of MMCL. Until 2013 MMCL and Mr Mitchell understood that the policyholder was MMCL. The error was discovered in 2013 and in 2014 Mr Mitchell assigned the policies to MMCL. Mr Mitchell was assessed to income tax in respect of the premiums paid until the date of the assignment and MMCL was assessed to pay primary and secondary class 1 national insurance contributions in respect of the payments. MMCL and Mr Mitchell...
