Gray & Associates Recruitment Services

EU Exit could lead to VAT reforms

This article from the Association of Recruitment Consultants reminds us that an EU exit has pros and cons.  Gray & Associates Recruitment Services supply staff to a range of non VAT registered organisations.  Until 2009, under the staff hire concession, we were able to apply VAT only to the agency margin element of the cost of a temporary worker.  Hence the workers’ pay element, which is by far the largest part of the costing, was VAT free.  From 1st April 2009 the staff hire concession was removed and all non VAT registered organisations, such as public sector, charities and banks, have had to pay VAT on the total costings. The reason for the withdrawal given by HMRC at the time was to bring VAT into line with EU rules. That argument now falls away. Gray & Associates are committed to the campaign supporting the reinstatement of the staff hire concession.

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