Featured Client

http://www.yummymds.co.uk/

Denis Bezucha, MD's

"Just this week we have opened our first "unique eatery" - a sandwich bar in London which is on King William Street just 2 minutes away from Trafalgar Square. I was referred to Fortune Law by a trusted adviser and on meeting Shainul and her team I knew I was in good hands. My business philosophy is to do things simply and well. Fortune Law took complex lease documents and made sure they were easily understood and the practical side well explained.  They were an amazing team to work with and I was very happy with their service which far exceeded my expectations.

I would like to thank the Fortune Law team for all of their hard work in helping me get my first site off the ground!"

Manfred Bog, a sausage and chips seller who sold his snacks from 3 mobile snack bars at weekly markets has last month secured a ruling from the European Court of Justice that he he is not obliged to charge the full rate of VAT.

In the main, the court held that his sausages required so little preparation that they did not fall under the definition of catering. It also found that the same rules should apply to popcorn and nachos sold in German cinemas.

The decision has caused a flurry of activity as accountants and VAT specialists believe that the decision could "open the floodgates" for VAT refund claims from operators of food stalls such as at football matches and music festivals as well as from cinemas.

The case seems to indicate that simple hot takeaway food products such as sausages will be potentially VAT-free whereas more complex food which needs more preparation will attract VAT. 

But will it apply to the UK? HMRC have stated that they will review the decision carefully but they do not believe the decision has application in the UK as both supplies of food and supplies made in the course of catering in the UK are treated as supplies of goods. If this is not the case, hot take away food could attract zero rate tax going forward and suppliers could reclaim over paid VAT going back 4 years. Big fast food operators are already reported to be submitting "protected claims" in order to protect their position and claims whilst legal challenges are being prepared.

For further information or advice on any legal matter, please do not hesitate to call us on 0207 440 2540 or email us at enquiries@fortunelaw.com

The Government will raise the national minimum wage later this year. This will affect staff contracts of employment at restaurants and all other businesses.

The following rates will come into effect on 1st October 2011:

• The adult rate will increase by 15p to £6.08 an hour;
• The rate for 18-20 year olds will increase by 6p to £4.98 an hour;
• The rate for 16-17 year olds will increase by 4p to £3.68 an hour; and
• The rate for apprentices will increase by 10p to £2.60 an hour.

Please bear in mind however that the London Living Wage is currently set at £7.85. Although this is not a statutory right it is independently set by the GLA every year and is calculated according to the cost of living and gives the minimum pay rate required for a worker to provide their family with the essentials of life.

If you would like advice on your obligations under employment law, please do not hesitate to contact us on 0207 440 2540 or email us at enquiries@fortunelaw.com.

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