EXCHEQUER SOLUTIONS LIMITED v Revenue & Customs (PAYE & NIC - travel and subsistence expenses - whether ordinary commuting or travel to temporary workplace)

For the Appellant:�������� Giles Goodfellow QC and Philippe Freund of counsel, instructed by Fieldfisher

For the Respondents: �� Adam Tolley QC and Sadiya Choudhury of counsel, instructed by the General Counsel and Solicitor to HM Revenue and Customs

             ESL and other companies providing similar services are often referred to as umbrella companies.� One of the reasons for this is that these companies aim to act as the employer of the relevant individuals across multiple assignments and not just in respect of one particular job.

             The key issue in this appeal is whether ESL employs the relevant individuals on a continuous basis under an overarching or umbrella contract of employment which covers all of the various assignments undertaken by a particular employee through ESL and includes any gaps between those assignments (including periods where the individual may be working for another employer) or whether there is a series of separate contracts of employment in respect of each individual assignment.

             Having carried out investigations, HMRC�s conclusion in this case is that there is no overarching contract of employment so that the payments relating to expenses are subject to income tax under the PAYE system and to NIC.�