VAT change on hiring temporary staff - May 2009
The VAT Staff Hire Concession, which applied to supplies of staff by employment bureau, was withdrawn on 31 March 2009.
Historically, employment businesses have charged VAT on their profit margin and not on the full value of their supply. From 1 April 2009, however, businesses making supplies of staff must charge and account for VAT on the full value of their supply.
In some sectors, for example the care and financial sectors, the VAT exemption may still apply, however, the VAT guidance is far from clear and we would urge you to contact us if you are unsure.
Also worth noting is that those bureau's who did previously account for VAT on the full value of their supply may qualify for the exemption and a claim for overpaid VAT may be possible.
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