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Contracts of employment: No illegality in tax-saving arrangements

This report relates to 1 case(s)

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    Lightfoot v D & J Sporting Ltd [1996] IRLR 64 EAT (0 other reports)

In Lightfoot v D & J Sporting Ltd [1996] IRLR 64 the EAT overturns an industrial tribunal's decision that the contract of an employee who entered into a new arrangement with his employer under which his wages were apportioned between him and his wife (who had always helped him in his work) was tainted with illegality because the purpose and effect of this arrangement was to reduce the couple's overall tax and national insurance liability. The EAT criticises the tribunal for apparently failing to appreciate the distinction between legitimate tax avoidance and unlawful tax evasion, and for failing to consider whether in this case the arrangement, which was disclosed to the Inland Revenue, was legitimate.