05 November 2014 
Amanda Darley, Head of Operations and Engagement
The Charity Tax Group (‘CTG’) has extended an invitation to BUFDG members to a seminar on Monday 17 November 2014, which will provide an update on the case challenging the VAT treatment of temporary staff, which has been listed for a First Tier Tribunal hearing from 11 May to 15 May 2015.
The appeal, which is being supported by a number of CTG and BUFDG members, challenges HMRC’s decision that output VAT was due from Adecco on all payments collected from its clients in relation to temporary workers. Adecco’s view is that output VAT is chargeable only on the introductory fee charged by Adecco for its services and not on the wage related payments – a view supported by the decision of the First Tier Tribunal in the Reed Employment case in 2011. The issue has significant implications for employment bureaux in the temporary labour market and for any organisations using temporary workers where those businesses are unable to fully recover VAT on the costs (including universities and other charities).
The seminar will be hosted by Deloitte, who are co-ordinating the case on behalf of Adecco, and will take place from 3pm for a 3:30pm start at Deloitte’s office at 2 New Street Square, London, EC4A 3BZ, with drinks and canapés to follow. A map with directions is attached. If you would like to attend, please e-mail info@charitytax.info to confirm your place.
It is recommended that if you have not already done so, you assess the potential impact of this and to take the necessary steps to protect any historical claim opportunities. Suppliers have not always been terribly helpful about this in the past, but anecdotal evidence shows that now this new case has been listed for hearing, suppliers are becoming more responsive to queries over the value of potential claims, and the idea of submitting protective claims.
For further information about the Deloitte seminar, or the Adecco case, or to discuss the implications of it and the scope for claiming refunds of VAT, please contact Nick Comer on 0207 007 7946. You can read this CTG briefing note for background information on the case and an outline of the terms offered by Deloitte.
