Case Law Corner
New laws are usually enforced by Acts of Parliament which, in turn, are brought about by the policies that the current Government has decided to pursue. However, case law stretches back centuries and is still an important source of the law-making process. Decisions made by judges may clarify and examine parts of existing legislation plus, decisions and statements can set precedents which other judges are bound to follow in later cases, thereby determining the law we have to follow.
This section focuses on case law decisions which either impact or have relevance on our day-to-day working in the payroll function.
CJEU Ruling on Holiday Pay for Employees on Long-term Sick – KHS AG v Winfried Schulte
Thursday, November 24th, 2011The Government consulted on amendments to the UK Working Time Regulations earlier in the year. These are the Regulations which implement the European Working Time Directive (WTD). Specifically, the Government’s consultation had much to do with recent rulings in the UK and Europe about holiday pay and how it is influenced when an employee is [...]
The Right To Work In The UK – Okuoimose v City Facilities Management (UK) Ltd
Thursday, November 17th, 2011Under the Immigration, Asylum and Nationality Act 2006, the employer can incur large penalties for failing to check whether an employee, or potential employee, actually has the right to work in theUK. The above case, heard in the Employment Appeals Tribunal, will not ease the penalty and compliance issues that many organisations have to contend [...]
Entitlement to Holiday Pay Whilst on Sick Leave – Fraser v Southwest London St George’s Mental Health Trust
Monday, November 14th, 2011There have been no shortage of UK and European cases in the last few years relating to the awkward issue of an employee’s entitlement to holiday pay whilst on sick leave. However, the case of Fraser v Southwest London St George’s Mental Health Trust appeared a relatively simple one. Mrs Fraser had an accident in [...]
Penalties for late P35 forms – Foresight Financial Services Ltd v HMRC
Wednesday, November 9th, 2011The First Tier Tribunal (Tax) hears appeals relating to tax against decisions that have been made by the Commissioners for Her Majesty’s Revenue and Customs. This decision from the First Tier Tribunal concerns the penalty that was raised by HMRC for the late filing of a P35. The deadline by which the P35 Return is required [...]
UK Residency – Robert Gaines-Cooper V The Commissioners for HM Revenue and Customs
Sunday, November 6th, 2011Whilst this ruling from the Supreme Court is primarily concerned with the international issue of residency in the UK for tax purposes, the case also has implications for the wider payroll function. This was a long-running case, however, briefly, in the 1970s; Mr Gaines-Cooper moved to the Seychelles and claimed that he had acquired a [...]
When do Arrears Payments become taxable? – Fountain v HMRC
Saturday, October 29th, 2011This case is concerned with a payment made in arrears and when such a payment becomes liable for tax. Whilst this tells us nothing new, it demonstrates a basic principle – most employers will pay their employees in arrears. Mr Fountain received a payment on 07 April 2007 for work carried out in March 2007. [...]
