Commentary

RCB/8/09 Reminder of the withdrawal of the VAT Staff Hire Concession and the VAT treatment to be applied from 1 April 2009

Part V16 Forms and other HMRC material

RCB/8/09 Reminder of the withdrawal of the VAT Staff Hire Concession and the VAT treatment to be applied from 1 April 2009

RCB/8/09 Reminder of the withdrawal of the VAT Staff Hire Concession and the VAT treatment to be applied from 1 April 2009

Revenue & Customs Brief, Issue 8. 19 March 2009

As announced at Budget 2008 the VAT Staff Hire Concession, which applies to supplies of staff by employment bureaux, is to be withdrawn from 1 April 2009. This brief is intended to remind affected businesses of its withdrawal and to set out the VAT treatment that should be applied from 1 April. VAT Information Sheet 3/09 (V16.944, Division v16.5) issued on 19 March 2009 contains more detailed guidance.

The concession is set out in Part A of the Statement of Practice in Notice 700/34 “Staff” (Part V8) and in Business Brief 2/04 (BB/2/04, Division V16.3). It enables businesses making supplies of their own staff to exclude from the value of their supply the remuneration element and any PAYE (Pay As You Earn), National Insurance Contributions, pension contributions and similar payments

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