Legal News

Payments to EBT sub-trust taxable as earnings (OCO Limited v HMRC)

Published on: 08 August 2017
Published by: LexisPSL
  • Payments to EBT sub-trust taxable as earnings (OCO Limited v HMRC)
  • Original news
  • What are the practical implications of this case?
  • What was this case about?
  • What were the main legal arguments arising?
  • What did the FTT decide?
  • The redirection principle
  • The Antoniades/Autoclenz argument
  • The Ramsay principle
  • Case details

Article summary

Tax analysis: the First-tier Tax Tribunal (FTT) found payments to the sub-trust of an employee benefit trust (EBT) were payments of earnings for the purposes of the pay-as-you-earn (PAYE) regime and were also subject to National Insurance contributions (NICs). The finding was based on the FTT’s application of the Ramsay principle, having rejected HM Revenue & Custom’s (HMRC) argument that the contribution was a redirection of earnings. or take a trial to read the full analysis.

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