The First Tier Tribunal has dismissed the appeal from the multinational construction company, Laing O’Rourke, after it appealed against HMRC’s demand to pay £2.2m in National Insurance contributions’ relief on a car allowance scheme for employees.

The appeal was designated as a ‘lead case’ under rule 18 of the First-Tier Tribunal procedure rules.

Laing O’Rourke operated a car scheme that allowed employees who were entitled to receive a company car, or a car allowance payment under the scheme instead of a company car, provided that the employee had a car available for use that met specified requirements.

On 29 November 2010 Laing O’Rourke wrote to HMRC attaching a claim for reimbursement of secondary National Insurance contributions on payments made to their employees for the use of employee-owned vehicles from 2004 – 10.

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