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Information Sheet 3/09, March 2009

1 Introduction

As announced at Budget 2008, in VAT Notes No 2 of 2008 and Revenue & Customs Brief 8/09 (RCB/8/09, Division V16.3) the VAT Staff Hire Concession will be withdrawn from 1 April 2009. Following its withdrawal, all businesses making supplies of staff as a principal will have to account for VAT on the full value of their supply. The full value of the supply includes the remuneration element and any PAYE (Pay As You Earn), National Insurance contributions, pension contributions and similar payments relating to the worker.

This information sheet provides guidance to those affected by the withdrawal of the concession. Notice 700/34 “Staff” will be updated and re-issued in due course.

2 Who will be affected?

Any business making a supply of staff as a principal. This could be an employment bureau whose main business activity is supplying staff, or any other business making a supply of