Thursday 9 November 2023
By Appellant’s Notice filed on 29 September 2022, the Respondent appeals with permission the Orders of the Upper Tribunal Tax and Chancery Chamber dated 19 July 2022 which allowed E.ON UK Plc’s (“EON’s”), appeal against the decision of the First-Tier Tribunal regarding changes to terms and conditions and payments to employees in connection with their pension scheme.
Background – EON made a one-off payment (“Facilitation Payment”) to employees who were members of its defined benefit pension scheme. The issue before the First-tier Tribunal (“FTT”) was whether the payment, in relation to a particular employee and pension scheme member, was subject to employment earnings taxation and National Insurance Contributions (“NICS”) on the basis it was “from” his employment for the purposes of the relevant tax and NICS legislation. HMRC argued it was, whereas EON argued the payment was to compensate for adverse changes made to his pension arrangements. The FTT agreed with HMRC. The Upper Tribunal allowed EON’s appeal and HMRC now appeal that decision.