VAT exempts face temps hike
Withdrawal of concession leads to concerns of £125m a year bill for those exempt from VAT
Charities, banks and other groups who hire temporary workers are facing a
hike in VAT payments, following the withdrawal of a concession in the Budget.
Agencies are campaigning against the change, which prevents organisations
recovering costs tied to the recruitment of temps.
The Budget decision means that only VAT-rated businesses will qualify for
relief from April next year.
That means much of the not-for-profit sector, as well as financial services
groups, will lose the benefit, worth £125m a year to business, The
Telegraph reported.
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