Benefit is due

The shareholder-director of the taxpayer company bought a BMW X5 in April 2004 to use for business and private purposes.

He sold a 90% share in the car to the business making a 10% contribution towards the running costs and paying 10% of the total fuel costs to the firm. He was not charged to car or car fuel benefit.

HMRC ruled that the taxpayer company should pay to class 1A National Insurance in respect of the car and car fuel benefit. The company appealed.

The First-tier Tribunal dismissed the appeal saying owning 10% of the vehicle did not prevent the director from being liable to National Insurance.

The decision was backed by the Upper Tribunal which said the issue hinged on whether or not the car was made available to the director.

The judge said that in line with Mr Justice Pumfrey’s comments in Christenson...