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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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Notices of decision: Who to name in decisions: Netherlane Ltd v Simon York

In Netherlane Limited v Simon York (SpC 457), Netherlane Limited appealed against a decision letter dated 9 September 2003 that the circumstances of the arrangements between Mr M J Renshaw and AMP UK (formerly NPI) for the performance of services from 6 April 2000 to 23 February 2001 were such that the ‘IR35’ legislation (see ESM3000 applied to National Insurance contributions.

The appellants contended that the decision was invalid because it was not issued to NPI who were named in the decision. Regulation 3 of the Social Security Contributions (Decisions and Appeals) Regulations 1999 (SI 1999 No 1027) requires that a decision must state the name of every person in respect of whom it is made. Regulation 4 of those regulations states that notice of a decision referred to in regulation 3 must be given to every person named in the decision. No notice was given to NPI despite being named in the decision. HMRC contended that NPI were not affected by the decision and so it was not made in respect of NPI and therefore, they were not required to be given notice. The Special Commissioners agreed with HMRC. The decision was made in respect of Netherlane Ltd, the Appellant and Mr Renshaw, because it affected their NIC. Although NPI were named so as to make clear to what relationship the notice applied, the decision was not made in respect of NPI and so there was no purpose in requiring them to be given notice.

The Special Commissioners concluded that reference to “persons named” must be construed as persons affected by the notice.