Olukemi Dada v The Commissioners for HMRC
Decision date: 2 July 2026
Neutral citation: [2026] UKFTT 993 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned a discovery assessment by HMRC for the year to 5 April 2010 charging tax on £36,301 paid by the appellant’s employer, Aston Management Limited (AML), to an Employee Benefit Trust (EBT) and loaned to the appellant. The Tribunal found the appellant was employed by AML, held that the EBT payments (then loaned to the appellant) amounted to remuneration/earnings taxable as employment income, and upheld the discovery assessment as valid and timely. The appellant’s good faith participation and lack of practical control over the scheme did not alter liability. The appeal was dismissed and the assessment for £7,534.40 was upheld.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
Payments made by an employer to a third party (an EBT) that are in substance remuneration for work can constitute earnings taxable as employment income to the employee, and where no return was filed HMRC may make a discovery assessment under TMA 1970 s.29(1) within the statutory period if the assessing officer reasonably concludes there is an insufficiency of tax.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment notes that the appellant’s reliance on professional advice and participation in a scheme in good faith does not, by itself, change the statutory tax treatment of remuneration; and that factual differences between cases do not necessarily prevent applying the principle that remuneration paid to third parties can be taxable to the employee.