The First-tier Tribunal erred in law in deciding that a payment of earnings had arisen from arrangements involving the appellant company making a payment to an employee benefit trust which then loaned the same amount to a director and shareholder, and the Upper Tribunal remade the decision to allow the appellant’s appeal for income tax and National Insurance contributions purposes. 

Summary 

The First-tier Tribunal (FTT) erred in law in deciding that a payment of earnings had arisen from arrangements involving the appellant company making a payment to an employee benefit trust which then loaned the same amount to a director and shareholder, and the Upper Tribunal (UT) remade the decision to allow the appellant’s appeal for income tax and National Insurance contributions purposes. 

Background 

A director and shareholder (MC) of the appellant company established a