In S Hoey v HMRC [2019] UKFTT 489 (29 July 2019) the FTT found that a discovery assessment was valid and that it did not have the jurisdiction to consider HMRC’s use of its discretion to recover PAYE from an employee.
Mr Hoey was an IT specialist who provided his services either as an independent consultant or through a company either his own personal service company or a third party provider employing a number of such contractors which was referred to as an umbrella company. In 2007/08 he had become an employee of Penfolds which had subsequently recommended that he transfer his employment to Hamilton Trust a Guernsey based trust company.
Mr Hoey and his fellow employees (‘the contractors’) were paid a basic wage for their work for Penfolds/Hamilton (‘the employers’) and tax was paid in full on those earnings. In addition each employer then...
