Key points
- Two directors received £300 000 worth of gold bullion from the company under an employee benefit trust.
- HMRC said the gold was taxable as a reward for services but the directors said it was a loan.
- The National Insurance regulations were amended to stop these types of arrangements.
The First-tier Tribunal heard Wired Orthodontics (TC8679) in July 2022 with the judgment dated 6 January 2023. The case names the employer Wired Orthodontics Ltd and also the two directors Ian Hutchinson and Susan Bessant who were associated parties to the appeal.
The case relates to an arrangement set up by a particular promoter for the benefit of the company to avoid PAYE tax and National Insurance arising on a proposed payment of £300 000 which was to be made to the two named directors.
The structure of the scheme was for the company to set up an...