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United Kingdom

UK FTT upholds HMRC on NIC host employer provisions: Aramark liable for secondary Class 1 NICs due to day-to-day control; consistent with Bilfinger

Published on: 25 September 2024

Published by a LexisNexis Tax expert
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Aramark Ltd v HMRC [2024] UKFTT 832 (TC)

Aramark (A), the appellant, was a company established in the UK within a group led by a US corporation. Its operations encompassed catering and hospitality support for offshore oil and gas installations located in the North Sea. It supplied personnel (the ‘crew’), goods, and equipment, including food provisions and housekeeping consumables, to the operators of those installations and, from 2004, it did this by drawing upon resources supplied by a non-UK group member company (OSI). Pursuant to the arrangement between A and OSI, employees who had previously been directly engaged by the appellant to service the operators’ contracts were transferred to OSI. The commercial purpose was to remove the cost of secondary Class 1 NICs so that A remained competitive. The question for the FTT was whether the host employer provisions (HEP) applied to A in respect of...

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