Premiums paid by an employer on insurance policies relating to a director that were taken out erroneously in the name of the director rather than the employer were taxable as the director’s income and subject to National Insurance contributions by the employer.
The appellant company (MMCL) paid premiums on insurance policies, which were in the name of the second appellant, its sole director and shareholder (WM). In 2015, HM Revenue and Customs (HMRC) issued a decision in respect of National Insurance contributions (NICs) it considered were due from MMCL, and assessments and a tax return closure notice in respect of income tax considered to be payable by WM, in respect of the insurance premiums paid by MMCL. The appellants appealed.
The First-tier Tribunal (FTT) had to decide whether the premiums should be treated as earnings from WM’s employment with MMCL, and therefore subject to primary and secondary Class 1
