The High Court has upheld the VAT tribunal decision that maggots supplied to fishermen are not zero-rated as animal feeding stuff. Their purpose was not to keep fish alive. Although this decision is of little direct application to most businesses, it does illustrate the more general principle that VAT classification can follow the purpose of supply...Read More

Issues being addressed in accounting standards and abstracts in 2000 include: accounting for start-up costs; national insurance on share option gains; barter transactions for advertising; changes to the accounting for SAYE schemes in light of recent tax changes; computer software, website, database and computer development costs; contributions by businesses to setting up joint ventures. [2000]Read More

The date an employment ends is to be determined according to the facts of the case as would determined by an ordinary, reasonable employee in the light of what was known at the time. A teacher was told on 17 February 1996 that he was to be summarily dismissed. He was notified of his right...Read More

When an ex gratia payment is made to an employee who then wins compensation for the same matter, the ex gratia payment is to be deducted from the compensation. The case concerned a goods vehicle driver who had to stop work after eight years because of a bad back. Some of the problem arose from...Read More

The government announced in 2000 plans to reduce the time it takes to obtain a work permit, so that 80% of applications are processed within one week. The measures include: a fast-track work permit procedure for employers in recognised sector shortages, such as information technology; a rolling programme of sector analysis to identify such areas...Read More

Whether sensitive information was deliberately memorised by a former employee is irrelevant in determining whether it is protected by a restrictive covenant. Since a case in 1986, it has sometimes been assumed that an employee cannot be found to have broken any condition of confidentiality or restrictive covenant if he or she subsequently uses information...Read More

An employer does not have the right to withhold pay while he checks whether an employee is genuinely sick. An employee has the right to receive his wages without any unauthorised deductions. It has been held that the non-payment of wages is the same as a 100% deduction and is therefore covered by this law....Read More

Some of the last details about stakeholder pensions were announced to Parliament on 25 May 2000. Only the final tax details are still outstanding. The latest changes relate mainly to technical matters regarding how to change scheme rules for existing pension funds to accommodate stakeholder pensions. [2000]Read More

In 2000, the CBI expressed strong concern to the government about any further changes to employment law, particularly regarding additional rights to parents and age discrimination. Such additional impositions would impose heavy burdens on business, making them uncompetitive. [2000]Read More

Workplace absence cost British business £10.5 billion in 1999, according to an annual survey by the CBI and PPP healthcare. This is an average of £438 per worker. The average employee took 7.8 days off in 1999. [2000]Read More