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ARC statement on Tax Tribunal decision - Reed Employment Limited v HMRC

ARC statement on Tax Tribunal decision - Reed Employment Limited v HMRC
 
The recent ruling of the first tier tax tribunal in the matter of Reed v HMRC highlights an issue that the Association of Recruitment Consultancies has been pressing the government on since May 2010 which has arisen as a consequence of the withdrawal of the VAT staff hire concession in April 2009.
 
Organisations that are not VAT registered including public sector bodies, charities and financial institutions may have been VAT invoiced in certain circumstances because of the effect of the concessions withdrawal.
 
ARC will continue to urge government to review the position in relation to VAT charges by employment businesses to Hirers that are not VAT registered. The ARC would also welcome support from other recruitment consultancies interested in this area.
 
As with ARCs other campaigns this focuses on the issues that really matter to the industry.

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