John Brinsmead-Stockham (11 New Square) explains why the forthcoming Court of Appeal judgment in Adecco matters.
Many employment businesses in the temporary employment sector are currently uncertain how to account for VAT. The fundamental issue is whether they are liable to account for output tax on: the full value of the payments received from their clients (e.g. 120) consisting of both the temps’ remuneration (e.g. 100) and commission charged by the employment business (e.g. 20); or on their commission alone. The answer turns on the correct analysis of the supplies made by employment businesses to their clients. This is another multi-party situation in VAT where advisers and the courts must determine ‘who supplied what to whom?’
The VAT treatment of employment businesses has come before the UK courts and tribunals a number of times. Prior to the Upper Tribunal (UT) decision in Adecco UK Ltd v...
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John Brinsmead-Stockham (11 New Square) explains why the forthcoming Court of Appeal judgment in Adecco matters.
Many employment businesses in the temporary employment sector are currently uncertain how to account for VAT. The fundamental issue is whether they are liable to account for output tax on: the full value of the payments received from their clients (e.g. 120) consisting of both the temps’ remuneration (e.g. 100) and commission charged by the employment business (e.g. 20); or on their commission alone. The answer turns on the correct analysis of the supplies made by employment businesses to their clients. This is another multi-party situation in VAT where advisers and the courts must determine ‘who supplied what to whom?’
The VAT treatment of employment businesses has come before the UK courts and tribunals a number of times. Prior to the Upper Tribunal (UT) decision in Adecco UK Ltd v...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
