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09 Oct 2008
According to a report on contractoruk.com, discussions between Treasury officials and recruitment representatives last week resulted in an unlikely withdrawal of the proposal by Chancellor Alistair Darling.
Critics of the move say the dropping of such a concession will cost end users an estimated £400m.
The concession currently allows agencies supplying staff to employers who are unable to recover VAT to exclude VAT from the wages element of their costs.
Under the proposal, agencies must charge VAT on all supplies of temporary staff. The move is scheduled to come into effect from April 2009.
Kevin Green, chief executive at the Recruitment and Employment Confederation, is urging the government to reconsider removing the VAT staff hire concession.
'Removing the concession will add £400m to employer costs at a time when key sectors like charity, financial and health-care can least afford it,' he said.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
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