Businesses with car allowance
schemes could reclaim NICs from HMRC in light of landmark Total People
ruling, suggest John Messore and Peter Moroz
The taxpayer has won a long-running dispute with HMRC regarding
reclaim of National Insurance Contributions (NIC) for the last six
years on car allowance payments. This could result in employer NIC
reclaims from some companies of around £1,000 per employee.
Some companies could also save employer NIC as well as employee
tax and NIC going forward by simply restructuring car allowances to
be more tax and NIC-efficient.
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