NICable premiums

In May 2002 T plc made payments into a funded unapproved retirement benefit scheme (FURBS) and an unapproved life assurance scheme (ULAS). The company was contractually committed to make payments to the schemes the money going to the scheme trustees.

HMRC determined that primary and secondary Class 1 National insurance contributions should be paid in respect of the contributions on the basis that these were 'earnings … paid to or for the benefit' of the employee within SSCBA 1992 s 3(1) and s 6(1).

The company appealed contending that there was no payment of earnings as defined and that the payments were excluded payments under the Social Security (Contributions) Regulations SI 1979 No 591 reg 19(1)(d) and Social Security (Contributions) Regulations SI 2001 No 1004 reg 25 and Sch 3. The company argued that HMRC were ignoring the legal structure of the arrangements; Tullett...