A colourful dispute

The first-tier tribunal in Yellow (TC00207) faced a case where two associated companies were potentially liable for the same amount of NICs arising from payments made via an employee benefit trust between April 1997 and April 2000, depending on how the identity of the liable employer was ultimately determined. HM Revenue & Customs had protected its position under the Limitation Act in respect of the company from which the liability was originally claimed, but not in respect of the associate. Counsel for the companies argued that the two companies’ appeals should be heard separately, partly because one of them would be raising the limitation defence.