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New tax law will add to cost of hiring temporary workers
A change in employment law meaning that all employers have to pay 15% VAT on the entire tax of hiring temporary workers will result in tens of thousands of temps losing their jobs.
The new tax will be implemented on April 1st and recruitment agencies have calculated that the extra VAT charge will add £400m to the cost of hiring temporary workers and will exacerbate the current employment figures.
The new ruling may mean that hiring temps is seen as too expensive by small business owners, and will further reduce their employment options.
The government are removing the staff hire concession as the loophole, introduced in 1997, breaks British and European law.
Post Date: February 27th, 2009
The new tax will be implemented on April 1st and recruitment agencies have calculated that the extra VAT charge will add £400m to the cost of hiring temporary workers and will exacerbate the current employment figures.
The new ruling may mean that hiring temps is seen as too expensive by small business owners, and will further reduce their employment options.
The government are removing the staff hire concession as the loophole, introduced in 1997, breaks British and European law.
Post Date: February 27th, 2009
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