TAX NEWS: Staff costs 'to rise' under VAT concession review. By Dan Martin

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Businesses which employ temporary workers face extra charges under new value added tax rules being considered by HM Revenue & Customs (HMRC).

HMRC recently announced a review of whether a concession that exempts organisations from paying VAT on payments to temporary staff should be abolished.

Under current regulations, if an end user of staff rather than the staffing agency pays its temps' fees, either directly or through a third party payroll business, VAT is not charged on those payments, but only on the commission charged by the staffing agency.

The Association of Technology Staffing Companies (ATSCo), warned if the so-called "staff hire VAT concession" is withdrawn, the c...

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