In NMW Solutions Ltd v HMRC [2023] UKFTT 364 (TC) (4 April 2023) the FTT allowed an appeal against determinations for £511 274.69 in respect of round sum employee subsistence payments ruling that HMRC was not entitled to impose best practice conditions requiring retention and checking of expense receipts which were not spelt out in a dispensation agreement.
The statutory conditions for employee subsistence expenses (under ITEPA 2003 ss 337-338) are notoriously onerous. To reduce the administrative burden HMRC entered into a dispensation (under ITEPA 2003 s 65) with NMW Solutions Ltd (NMWSL).
HMRC later raised determinations (under the Income Tax (Pay As You Earn) Regulations 2003 reg 80 and Social Security Contributions (Transfer of Functions) Act 1999 s 8) in respect of employee subsistence claims made under the dispensation for 2013/14 to 2015/16. In oral evidence HMRC claimed that NMWSL’s expenses system provided employees with a ‘large...
