Part V8 HMRC Notices | Commentary

700/34/12 Staff

Part V8 HMRC Notices | Commentary


May 2012

This notice cancels and replaces Notice 700/34 (May 2005).

1 Introduction

1.1 What is this notice about?

This notice explains the VAT treatment of supplies of staff including supplies made by staff bureaux. The term “staff” includes directors and other office holders. However, there are some additional situations that apply only to directors and these are covered in section 4.

There are special rules for certain services performed outside the United Kingdom or supplied to, or received from, persons who belong outside both the UK and the Isle of Man. You can find out more about this in Notice 741A “Place of Supply of Services”.

Some other notices on related subjects are—


         700 “The VAT Guide”


         701/2 “Welfare”


         701/31 “Health institutions”


         701/57 “Health professionals”

Main narrative treatment—V2.214, V3.221.

1.2 What's changed?

This notice has been restructured to improve readability. It also reflects the withdrawal of the Staff Hire Concession. Consequently, the text of the Statement of Practice reproduced in the Appendix has been changed to reflect this.

1.3 Who should read this notice?

This notice is intended for anyone who supplies staff including staff bureaux. If you supply other services please see paragraph 2.4.

2 Background

2.1 What is a supply of staff?

You make a supply of staff for VAT purposes if, for consideration, you provide another person with the use of an individual who is—


    —     contractually employed or otherwise engaged by you, or


    —     is a director of your company.

For more information about consideration see paragraph 2.3.

There is a supply regardless of whether the

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