In Pertemps v HMRC [2018] UKFTT 369 (6 July 2018) the FTT found that the provision of a salary sacrifice scheme to employees was not a supply.
Pertemps was the VAT representative member of a group which provided temporary and permanent workers to clients. For temporary workers it operated a scheme for the provision of travel and subsistence expenses known as ‘MAP’. The relevant workers were employees of Pertemps and under MAP they agreed to a reduction in wage in return for an amount for travel and subsistence. The effect of MAP was that the employee’s taxable salary was reduced for income tax and NIC purposes.
The first issue was whether the scheme involved a supply by Pertemps to employees; the FTT observed that this issue should be broken down into two questions;...
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In Pertemps v HMRC [2018] UKFTT 369 (6 July 2018) the FTT found that the provision of a salary sacrifice scheme to employees was not a supply.
Pertemps was the VAT representative member of a group which provided temporary and permanent workers to clients. For temporary workers it operated a scheme for the provision of travel and subsistence expenses known as ‘MAP’. The relevant workers were employees of Pertemps and under MAP they agreed to a reduction in wage in return for an amount for travel and subsistence. The effect of MAP was that the employee’s taxable salary was reduced for income tax and NIC purposes.
The first issue was whether the scheme involved a supply by Pertemps to employees; the FTT observed that this issue should be broken down into two questions;...
If you are not a subscriber, subscribe now to read this content.
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