Employing temporary workers will cost more

Sector seeks a postponement to VAT changes

Government ministers have confirmed that they intend to proceed with the planned changes in VAT, which would make it more expensive to hire temporary workers.
The changes to be introduced in April this year, are expected to increase the cost of hiring temporary workers in the insurance, banking, education, charity and healthcare sectors.
The recruitment sector are collectively requesting for the changes to be postponed until 2011 when the jobs market is expected to have recovered.
In the 2007 Budget, Chancellor Alistair Darling said there would be a withdrawal of the staff hire concession, which allowed for companies to pay VAT on agency fees as opposed to the wages of temporary staff.
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