Appeal rules HMRC was right to class health leaders as employees

Date: 2nd March 2010

Weight Watchers, the global healthy eating promotion company, has set aside a fund in case it is ordered to pay back-dated tax for its "employees".

A tax appeals tribunal recently upheld HM Revenue & Customs' (HMRC) decision to class the firms UK group leaders as employees rather than self-employed contributors for tax purposes.

According to the Telegraph, a number of tax specialists feel the ruling will encourage HMRC to increase its attempts to reduce the number of people in the UK claiming self-employed status.

The company has launched a further appeal but has announced that it has set aside a fund of almost $37 million (£27.4 million) to make the back-dated payments in case the appeal fails.

According to the newspaper, Weight Watchers UK team leaders, who host around 6,000 meetings around the country per week, could face losses of hundreds of pounds should the company fail in its next appeal attempt