S Barnard Ltd v HMRC

Business tax: Car provided for company secretary

In S Barnard Ltd v HMRC (TC00491 – 18 May) a family company carried on a plumbing business. It provided its company secretary (who was the wife of the controlling director) with a BMW car costing about £32 000. The company failed to account for Class 1A national insurance contributions in respect of the car. HMRC issued a ruling that the company was required to pay Class 1A contributions. The company appealed contending that the provision of the car was 'normal commercial practice' within ITEPA 2003 s 169(4). The First-Tier Tribunal rejected this contention and dismissed the appeal finding that the company had provided insufficient evidence to support its claim.

Why it matters: In cases of this nature the presentation of the evidence before the Tribunal is crucial. The company failed to provide adequate evidence to support...