TC09663 - [2025] UKFTT 01250 (TC)

This appeal concerns the application of ss 44 to 47 of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) (“the Agency legislation”) to specialist dog-handlers supplied by the Appellant (‘Tyler Services Limited’) to its end-clients, for the purpose of providing security and search-dog detection services at events and venues. If s 44 ITEPA applies, then the payments made by the Appellant to the dog-handlers are to be treated as ‘earnings’ for income tax purposes.

The Appellant appeals against a determination (“the Determination”) made under reg. 80 of the Income Tax (Pay As You Earn) Regulations 2003 SI 2003/2682 (“the PAYE Regulations”), on 11 March 2022. The sum assessed was £133,615.60 (reduced to £88,503.70 following review (Footnote: ¹)) and relates to the 2017-18 tax year (“the relevant period”). The basis of the Determination was that the Agency legislation applied in respect of the dog-handlers (s 44(3) ITEPA). HMRC have estimated the Determination to the “best of their judgment”,as referred to in reg. 80(2) of the PAYE Regulations. The Appellant has not challenged whether the Determination was made to the best judgment. (Footnote: ²)