Relevant motoring expenditure and National Insurance

I write to add my thoughts to the article ‘Happy motoring’ by John Messore and Peter Moroz published in Taxation 27 January 2022 page 8. The article was a good summary of the facts and the decision in Willmott Dixon (TC8359) by the First-tier Tribunal. It will now be interesting to see if HMRC is inclined to appeal the decision and/or marry the ruling with that recently made in Laing O’Rourke (TC8161) and in Cheshire Employer and Skills Development Ltd (formerly Total People) v CRC [2013] STC 2121 previously.

Important questions

It does seem to me that this decision raises some significant questions over the historical operation of National Insurance on earnings.

It is the case that leaving aside the special rules for directors who are caught to National Insurance on an annual basis in respect of their fees then earnings are caught to National Insurance in regard to...