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Forde and McHugh Ltd v CRC, Supreme Court
The taxpayer company set up a funded unapproved retirement benefits scheme (FURBS) for its director. Treasury stock with a nominal value of £162 000 and £1 000 cash was paid into the scheme. HMRC said the company was liable to pay class 1 National Insurance (NI) contributions on the total amount paid.
The Upper Tribunal allowed the taxpayer’s appeal finding that the payments were not earnings within the Social Security Contributions and Benefits Act 1992 s 6(1) and therefore not liable to NI.
The Revenue’s appeal was allowed by the Court of Appeal and the matter moved up to the Supreme Court.
The issue was whether the transfer of the cash and stock was within the meaning of SSCBA 1992 s 6 a payment of earnings to director or for his benefit. It was agreed the payment was for his benefit – but...
