VAT change a 'tax on jobs' for recruiters

Date: 20th January 2009

Recruitment firms have hit out at proposals to remove the VAT staff hire concession, branding it a "tax on jobs".

Officials at the Recruitment and Employment Confederation (REC) have voice their anger at the plans, which could come into force on April 1st.

The group estimates that the change will hit sectors such as healthcare, education and charities particularly hard - ultimately leading to job losses.

Kevin Green, chief executive of the REC, commented: "With this tax change, the government is giving with one hand and taking with the other."

He added that last week's jobs summit pledged to get more people back into employment, but the changes in VAT were more likely to lead to redundancies.

Elsewhere, small business owners and self-employed individuals should keep in the mind the upcoming deadline for self-assessment tax returns, with all submissions being due online by January 31st.