Odfjell Technology (UK) Limited v The Commissioners for HMRC
Decision date: 9 January 2025
Neutral citation: [2025] UKFTT 28 (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 whether Odfjell Technology (UK) Ltd was a "host employer" under the Host Employer Provisions (para 9 Sch 3 SSCER) and therefore liable for secondary Class 1 NICs for 2003/04–2013/14. The Tribunal found that Odfjell, through rostering, operational instructions, procedures (DDIs/WWIs, L4 TOPS), and onshore HR/management, exercised sufficient day-to-day control so that Offshore Employees’ personal service was made available to and rendered for Odfjell’s business. The appeal was dismissed and HMRC’s assessment (~£16.76m plus interest) stands.
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: high
The Tribunal’s ratio is that the HEP can apply where a putative host directs or controls the day-to-day personal service of foreign-employed workers by means of rostering, operational instructions and an overarching framework of procedures and HR/management oversight, even if offshore supervisors retain operational autonomy and substitution by the foreign employer is possible.
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 Tribunal did not decide whether the limb (a) requirement that service be "made available" imposes an independent control test distinct from limb (b) ("rendered") and left issues about apportionment between multiple potential hosts for a higher court. It also observed that control for HEP purposes may be established by indirect or systemic mechanisms (procedures, rostering, appraisal and management frameworks), not only direct day-to-day supervision.