Employment Law
In the case of Weight Watchers (UK) Ltd & Others v HMRC it was ruled that Weight Watchers leaders were in fact employees of Weight Watchers and not self-employed for tax purposes Weight Watchers (UK) Ltd are therefore required to submit tax under the PAYE scheme rather than their leaders submitting their own tax returns. This leaves Weight Watchers (UK) Ltd owing HMRC millions of pounds. In coming to their ruling The Upper Tribunal held that Weight Watchers (UK) Ltd had a significant level of control over their leaders and that leaders had to take classes and provide a service to Weight Watchers to be paid, therefore making them employees rather than self-employed.
This decision highlights the importance of keeping employment contracts and details of employment status under review and up to date.
If you are an employer or employee and would like more information regarding employment matters please contact us.
Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.