UT upholds FTT decision—travel expenses reimbursed by umbrella company to workers were taxable (Mainpay v HMRC)

Table of contents

• Why it matters
• Case details

Article summary

Tax analysis: In Mainpay, the Upper Tribunal (UT) dismissed the taxpayer’s appeal and upheld the decision of the First-tier Tax Tribunal (FTT) that the taxpayer company’s reimbursement of travel and subsistence costs to workers it contracted and supplied via employment agencies was subject to tax. The FTT had made no error of law, including in deciding that each separate assignment (however short) involved travel to a permanent workplace, which resulted in the expenses not being deductible from earnings for the purposes of PAYE and National Insurance contributions (NICs).