Accountancy firm MHA MacIntyre Hudson has questioned whether efforts to claim back overpaid National Insurance Contributions (NICs) will succeed.

A group of companies, together with Innovation Professional Services and law firm Joseph Hage Aaronson, are collectively considering action to claim back overpaid NICs on the payment of employees’ car allowance and business mileage payments.

Their action is based on the precedent set out by the 2012 Court of Appeal decision involving Cheshire Employer and Skills Development Ltd (formerly known as Total People).

However, MHA MacIntyre Hudson says they have a difficult task in succeeding because they are disputing a point which is key to the NIC Regulations.

Alastair Kendrick, tax director at MHA MacIntyre Hudson, said: “The decision in the Total People case appears to have arisen on how the case was first heard in the Lower Tribunal and not in any accepted weakness in the particular NIC rules.

“HMRC made clear in the fleet press that this decision could not be considered to be a green light to others. They made clear they would take action against any who tried to piggy back on the decision.

“If the decision did go in favour of the taxpayer group I wonder if they will change the regulations to plug any problem.”

Representatives of companies that attended the recent seminars about a potential class action to claim back overpaid NICs will meet again with Messore and legal advisers in London in the coming weeks.

From that meeting, details of each company’s claim against HMRC will be put together based on accurate mileage records and the number of employees involved.

In addition, a cost-sharing agreement must be reached and those companies involved will require board approval to take the case to court.