Tax and Pensions
Review of the VAT staff hire concesssion
This year’s Budget announcement included the withdrawal of the VAT staff hire concession and business brief arrangement from 1st April 2009.
These arrangements allow agencies who place temps to zero-rated VAT organisations to only charge VAT on the margin of a placement, rather than on the whole cost of the placement.
However the REC believes that the true cost of the withdrawal of the concession will be much higher than the Treasury estimates.
Members-only briefing on VAT staff hire concession
Pensions Policy
The Government published its White Paper on pensions in May 2006 entitled Security in retirement: towards a new pension system and contains a package of reforms which will significantly change the way the system works.
The Pensions Bill will automatcially enrol employees onto a pension scheme but with the option of dropping out.
It is envisaged that temporary workers will be included in the scheme – something that will add a further 3% to the wage costs of a temporary placement.
Press Releases
October 2008 Update on VAT staff hire concession
October 2008 Temps should be allowed to claim to tax relief
July 2008 Removal of VAT staff hire concession means cost of temps are set to soar
July 2008 Social security payments to be paid to agency workers
July 2008 REC wins key lobbying outcome on money laundering regulations
March 2008 - Budget reports review of VAT staff hire concession
