Cost recovery

• Changes to regulations on VAT charging for agency staff
• Full cost recovery
• Cost recovery

Removal of VAT concession on agency staff

From 1 April 2009, businesses and other organisations will be charged VAT on the full value of the invoice issued by the employment agency for the supply of temporary workers.

Previously employment agencies have been able to take advantage of a concession that allowed VAT to be charged solely on the margin they make when supplying temporary workers. However, the 2008 Budget announced that the concession would be officially withdrawn and agencies will be required to charge VAT on the full value of the invoice issued by the employment agency for the supply of temporary workers.

This may adversely affect housing support providers who make extensive use of agency staff as for them it will be a new tax on employing temporary staff. More information on the technicalities of the changes can be found on HM Revenues and Customs website. If you would like to discuss how your organisation is affected by this issue please contact Moira Weir.

Full Cost Recovery

The Scottish Executive commissioned GEN Consultancy to report on the implications of full cost recovery.  The resulting report was published in 2007 and can be seen here.

Cost Recovery

At the SP Enabling Unit's Regional Event in Glasgow in December 2004 providers heard Martin Crewe, Assistant Director of Barnardo's Scotland talk about the principles of Full Cost Recovery and how community care providers have been pursuing this issue nationally.

Here is the content of his presentation.

• [PDF] Full Cost Recovery: Getting The Right Price

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