VAT charge to hurt temp supply to key industries
06 Aug 2008, Paul Grant, AccountancyAge
http://www.accountancyage.com/aa/news/1748722/vat-charge-hurt-temp-supply-key-industries
Plans to add VAT to the wages of temporary social care and charity workers, locum doctors and financial services staff will lead to a significant fall in the use of agency staff, according to a new study.
The Recruitment Employers Confederation has warned that the government has ‘grossly underestimated’ the costs involved.
The measures, which come into effect in April 2009 and scrap the concessions to agencies providing temporary workers to industries with a zero rate of VAT, should put £125m a year in the Treasury’s coffers. However, the REC has estimated the cost to be at least £400m, The Telegraph reports.
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Visitor comments
No it won't
Recruitment agencies have a vested interest in this matter. The fact of the matter is charging VAT on temporary staff will only hasten full-time permanent recruitment process. this would be beneficial in the long term.
I hope you will stop listening to recruitment agencies without taking account interests of job seekers and full-time permanent employees.
Posted by: Jay Tanna , 06 Aug 2008 | 00:00