K5K LIMITED v Revenue & Customs (NCOME TAX and NATIONAL INSURNCE CONTRIBUTIONS - section 44 ITEPA 2003 - Employment Business in Health Care Sector - supply of workers to end clients)

INCOME TAX and NATIONAL INSURNCE CONTRIBUTIONS - section 44 ITEPA 2003 �Employment Business in Health Care Sector - supply of workers to end clients - Limited Company Contractors (�LCCs�) with personal companies - whether assessments validly raised where the charging provisions not particularised - whether the deeming provision applies to LCCs as Agency Workers by reference to the contractual arrangements in force during the relevant period - appeal dismissed

������������������������������������������������ ����������������������������������������������������� Judgment date: 12 July �2022

For the Respondents: Adam Tolley QC and Laura Poots, Counsel, instructed by the General Counsel and Solicitor to HM Revenue and Customs

             K5K Limited (�K5K�) appeals against the respondents� (�HMRC�) decisions that it is liable to income tax under Pay as You Earn (�PAYE�), in accordance with legislation applicable to workers supplied by agencies under s 44 of the Income Tax (Earnings and Pensions) Act 2003 (� ITEPA �).

             If s 44 ITEPA applies, then the payments to the LCCs are to be treated as �earnings� for income tax purposes, with the corollary that the equivalent provisions [1] under Social Security (Categorisation of Earners) Regulations 1978 for National Insurance Contributions (�NICs�) purposes also apply.