Twenty companies have shown interest in joining legal action against HM Revenue and Customs (HMRC) that could see them each recoup up to £1 million in ‘wrongly paid’ National Insurance Contributions (NIC) on car allowances.
HM Revenue and Customs (HMRC) has insisted that a ruling at the Court of Appeal involving grey fleet mileage claims does not form a legal precedent and will not result in it having to hand back millions of pounds in tax to fleets.
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.
HM Revenue and Customs (HMRC) has successfully overturned a first tier tribunal decision from August 2010 that business motoring allowances paid to staff were exempt from National Insurance Contributions (NIC).