Fleet News

Total People NIC motor mileage reclaim case amended by Upper Tribunal

In a rare action, the Upper Tribunal has revised their original decision on the Total People vs HMRC case. This move follows an application for permission to go to the Court of Appeal for Grant Thornton UK LLP, on behalf of Total People.

The case relates to a national insurance refund claim based on the difference between the HMRC 40p per mile allowable rate and the 12p per mile paid by the employer plus an additional lump sum paid to the employees for using their private cars on business.

The Upper Tribunal has acknowledged that it made a mistake in the decision made in August 2011 to state that Regulation 22A(3)(c) was common ground and not in dispute between the parties when this was clearly part of the original appeal to the First Tier.

Total People was successful with its appeal to the First Tier Tribunal in August 2010 but, on appeal, the Upper Tier Tribunal decided in favour of HMRC in August 2011.

However, while the amendments remove that intrinsic error the conclusion has not been amended and the decision is still in favour of HMRC.

Grant Summers, tax partner at Grant Thornton UK LLP, said: "The revised decision has gone some way to justify the conclusion last August confirming that the interpretation of the law made at the Upper Tribunal's decision was neither meant by the original draft nor by HMRC's prevailing practice."

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee