VAT

The Recruitment and Employment Confederation (REC) has expressed its dismay at learning that the government intends to go ahead with plans to drop the VAT staff hire concession as from 1 April.

Under normal circumstances, the provision of a package of benefits by an organisation, in return for a membership subscription, would take the VAT treatment of the principal benefit, the other benefits being treated as ancillary.

From 1 April 2009, the process for handling VAT disputes is changing.

Businesses are being reminded that the date by which they can claim a special, one-off refund on past VAT payments is 31 March 2009.

The British Retail Consortium (BRC) has said that the planned date for the restoration of the old rate of VAT will come at the worst possible time for businesses.

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