NIC, car for family member - HMRC won
Case Summary:
The company provided Mrs Barnard the non salaried company secretary and wife of the director with a BMW 330D Sport Touring Car. The question was whether the benefit was taxable on Mr Barnard with consequent Class 1A NIC arising. The key issue was if the making available of an equivalent car was in accordance with the normal commercial practice for an employment of the kind held by Mrs Barnard. The First Tier Tribunal decided that ‘there is insufficient evidence for us to determine whether the provision of an equivalent car is in accordance with the normal commercial practice for an employment of the kind held by Mrs Barnard.’. The Class 1A NIC was due and a penalty equal to the NICs also fell due.
