We have waited several years for a case on employment businesses and temp workers where the VAT charge applying to the temp’s wage element is usually viewed as creating an unlevel playing field between permanent and temporary employment structures.
This anomaly has its genesis in the Conduct of Employment Agencies and Employment Businesses Regulations SI 2003/3319 which gave agency temps legal rights analogous to employment rights but paradoxically created a VAT situation more akin to full outsourcing. This in turn (after significant delay and in 2009) led to removal of a concession which preserved the pre-2003 situation while HMRC undertook a ‘review’. The removal of the concession was a blow but our hopes had been raised by the 2011 decision of the FTT in Reed Employment [2011] UKFTT 200 (TC) which related to contracts dating from...
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Home >Articles > Adecco and VAT on temporary staff
Adecco and VAT on temporary staff
We have waited several years for a case on employment businesses and temp workers where the VAT charge applying to the temp’s wage element is usually viewed as creating an unlevel playing field between permanent and temporary employment structures.
This anomaly has its genesis in the Conduct of Employment Agencies and Employment Businesses Regulations SI 2003/3319 which gave agency temps legal rights analogous to employment rights but paradoxically created a VAT situation more akin to full outsourcing. This in turn (after significant delay and in 2009) led to removal of a concession which preserved the pre-2003 situation while HMRC undertook a ‘review’. The removal of the concession was a blow but our hopes had been raised by the 2011 decision of the FTT in Reed Employment [2011] UKFTT 200 (TC) which related to contracts dating from...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")