Chief executives from some of the largest recruitment firms have labelled a
change in VAT as a ‘tax on jobs’.
The changes are set to be introduced in April, and are expected to increase
the cost of hiring temporary workers in the insurance, banking, education,
charity and healthcare sectors more expensive, the chief executives said in a
letter published in the Financial Times.
The recruiters are calling for the changes to be pushed back to 2011 when the
jobs market is expected to have recovered.
In the 2007 Budget, Chancellor Alistair Darling said there would be a
withdrawal of the staff hire concession, which allowed for companies to pay VAT
on agency fees as opposed to the wages of temporary staff, the FT said.
Kevin Green, chief executive of the Recruitment & Employment
Confederation, said in imposing the VAT change, the government is ‘giving with
one hand and taking with the other.’
‘Last week’s jobs summit promised to get more people back in work but if the
VAT costs on temporary care workers, lecturers and financial analysts soar in
April, job cuts will have to be made,’ he said.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
"The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern," say Supreme Court judges
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group