Insurance premiums paid by a company on policies where originally the policyholder was erroneously its director shareholder was not a profit or benefit for the individual that derived ‘from’ his employment with the company. 

The second appellant (WM) was the sole director shareholder of a company (MMCL). Premiums were paid by MMCL over several insurance policies. In each case, the insured was WM. However, until 2013, MMCL and WM understood that the policyholder in each case was MMCL. The error was discovered in 2013, and in 2014, WM assigned the policies to MMCL.

WM was assessed to income tax in respect of the premiums paid until the date of the assignation, and MMCL was assessed to pay primary and secondary Class 1 National Insurance contributions in respect of those payments. MMCL and WM appealed. The First-tier Tribunal (FTT) dismissed the appellants’