Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Latest NewsEconomics, government & businessRecruitment & retentionTemporary employment

New tax rules could add £400m to cost of hiring temps

by Mike Berry 6 Aug 2008
by Mike Berry 6 Aug 2008

New tax rules could add an extra £400m to the cost of hiring temporary workers in certain sectors, the Recruitment and Employment Confederation (REC) has warned.

The government announced plans in the Budget earlier this year to abolish the staff hire concession, which enables employment agencies to charge VAT solely on the commission element of their supplies, rather than the whole cost of placing a temporary worker, from April 2009.

An REC analysis of the new rule – which will result in VAT of 17.5% being charged on the wages of temporary staff – found that it will hit the charity, social care, education, social housing and financial services sectors the hardest.

Healthcare would be the biggest loser as costs will soar as VAT is charged on the wages of locum doctors and specialist medical staff supplied through agencies.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Anne Fairweather, REC head of public policy, said: “Evidence from the affected sectors suggests that the cost could be to the tune of £400m. This will have a dramatic impact on the supply of staff to work with some of the most vulnerable in society.”

The REC said it was keen to work with HM Revenue & Customs to find “viable solutions” to the problem.

Mike Berry

previous post
UK managers still check e-mails despite being on holiday
next post
Management buy-in on staff engagement is crucial to success

You may also like

Decision to sack man for Michael Jackson noises...

29 Aug 2025

P&O Ferries boss who steered 800 sackings steps...

29 Aug 2025

UK large companies’ succession planning is weak –...

29 Aug 2025

Gender bonus bias widens pay gap, says Brightmine

29 Aug 2025

Bankers learn of redundancy in email gaffe asking...

29 Aug 2025

Cabin crew manager with ‘flirty banter’ loses discrimination...

29 Aug 2025

Council clerk sacked after trying to ensure his...

29 Aug 2025

Four-day working week trial in Scotland’s public sector...

29 Aug 2025

How to employ a global workforce from the...

28 Aug 2025

Day one rights in the Employment Rights Bill...

28 Aug 2025

  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise