Shelve plans to up tax on temps, group says

Recruitment industry experts have called on the government to abandon proposals to add extra taxation on the provision of temporary workers in sectors such as healthcare, social work and education.

In its response to HM Revenue & Customs' consultation on the review of the current VAT concessions on the supply of temps, the Recruitment and Employment Confederation (REC) said introducing extra taxes would prove damaging for both employers and employees.

Tom Hadley, REC director of external relations, said: "The extra taxation would make recruitment costs prohibitive for employers and would limit the opportunities and flexibility that temporary work provides for thousands of workers in the UK.

"It is crucial that the government takes on board the submissions from business organisations such as REC and does not underestimate the effect that withdrawing current concessions would have on the national labour market."