The government has re-opened a debate about whether or not businesses should
pay VAT charges on temporary staff.
a Business Brief on HMRC’s website this week, the government said it wanted to
invite comments about withdrawing the ‘staff hire concession’, which limits
the VAT bill on commissions charged by employment agencies.
Ann Swain, chief executive of the Association of Technology Staffing
Companies, said: ‘If organisations have to pay VAT on temps’ salaries, the cost
to UK plc of using temps is going to rise significantly. The government is
forever praising the contribution temporary workers make to UK competitiveness,
but if VAT is charged on temps’ salaries, organisations will use fewer temps,
and the flexibility of the UK labour market will be compromised.’
Stephen Coleclough, VAT expert at PricewaterhouseCoopers, said the move would
hit the financial services industry hardest, with the cost in the tens of
millions of pounds.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
Does Darwin's theory apply to taxation? Colin ponders...