BB/2/04 VAT—hire of staff by employment businessesBusiness Brief, Issue 2. 21 January 2004This Business Brief updates Business Briefs 20/98 and 13/99, which set out Customs & Excise view on the VAT implications arising from changes proposed by the Department of Trade and Industry (DTI) to the rules governing the conduct of employment businesses and the rights of workers using them. It also covers the VAT position of wardens' and estate managers' services.The DTI made the Conduct of Employment Agencies and Employment Business Regulations 2003 on 17 December 2003, which come into force later this year. At present many employment bureaux act as agents for VAT purposes or use the staff hire concession. This enables them to charge VAT on their commission; or on an amount which excludes the salary and associated costs. As a response to the proposed DTI
Business Brief, Issue 2. 21 January 2004
This Business Brief updates Business Briefs 20/98 and 13/99, which set out Customs & Excise view on the VAT implications arising from changes proposed by the Department of Trade and Industry (DTI) to the rules governing the conduct of employment businesses and the rights of workers using them. It also covers the VAT position of wardens' and estate managers' services.
The DTI made the Conduct of Employment Agencies and Employment Business Regulations 2003 on 17 December 2003, which come into force later this year. At present many employment bureaux act as agents for VAT purposes or use the staff hire concession. This enables them to charge VAT on their commission; or on an amount which excludes the salary and associated costs. As a response to the proposed DTI
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