25,000 temp jobs in danger as VAT loophole is closed

drc

This has got to be the worst time for this to come into effect. Surely this is just going to reduce tax revenue even more rather than bring it in?

http://www.thisislondon.co.uk/standard/article-23653228-details/25%2C000+temp+jobs+in+danger+as+VAT+loophole+is+closed/article.do

bubblesmoney

cant understand on why vat is charged when the temp workers and agencies involved would be paying income tax on the income anyway. more hidden income tax i guess or maybe double taxation in disguise. wonder why they havent started taxing the dead yet.

they wouldnt have to tax working people more if they werent burning money where they shouldnt be in the first place. but then their banking chums wouldnt get bailed out and if that didnt happen then they wouldnt get plum jobs advising the same companies after they get out of govt or their present jobs advising govt to give the bailouts i guess.

matbe

It is pointless and is scaremonger reporting.

I bet nearly if not all companies that use temps are vat registered so they would claim the vat back.

If they are vat registered it wont matter will it ?

Perhaps I've missed something?

nervousmother

matbe wrote: »

It is pointless and is scaremonger reporting.

I bet nearly if not all companies that use temps are vat registered so they would claim the vat back.

If they are vat registered it wont matter will it ?

Perhaps I've missed something?

True if they are VAT reg it wont matter, but alot of temps will work in charities or the insurance industry... this is where the biggest problem will be...

matbe

Not sure about the insurance industry(are insurance companies exempt from vat? ) but charities?

What do they contribute to the economy anyway?

ruggedtoast

matbe wrote: »

Not sure about the insurance industry(are insurance companies exempt from vat? ) but charities?

What do they contribute to the economy anyway?

Oh not much. Only providing a range of services (welfare, housing, education, counselling, crisis centres, community mediation and support) which cant or wont be provided by government to an enormous array of people who young, and old, rich and poor, at some time time in their life need a hand up, usually on a shoe string, as well as employing thousands of people nationwide.

Last time I looked most charities salaried staff were comprised of human beings who pay tax and buy things as well.

Charities do not pay VAT.

matbe

ruggedtoast wrote: »

Oh not much. Only providing a range of services (welfare, housing, education, counselling, crisis centres, community mediation and support) which cant or wont be provided by government to an enormous array of people who young, and old, rich and poor, at some time time in their life need a hand up, usually on a shoe string, as well as employing thousands of people nationwide.

Last time I looked most charities salaried staff were comprised of human beings who pay tax and buy things as well.

Charities do not pay VAT.

Sounds like a business to me and one that evades paying tax by hiding behind charitable status.

ruggedtoast

matbe wrote: »

Sounds like a business to me and one that evades paying tax by hiding behind charitable status.

Well there are still some proper charities, mostly groups of plump well to-do ladies who walks the streets of the east end handing out buns to scraggly groups of shoeless urchins who might otherwise be sent to the workhouse.

Otherwise though, yes most not-for-profit organisations are by necessity run like businesses.

matbe

ruggedtoast wrote: »

Well there are still some proper charities, mostly groups of plump well to-do ladies who walks the streets of the east end handing out buns to scraggly groups of shoeless urchins who might otherwise be sent to the workhouse.

Otherwise though, yes most not-for-profit organisations are by necessity run like businesses.

Don't suppose they would have a chief exec on £100,000 a year by any chance would they ?

SingleSue

Some charities are there for the good of the people and fill a hole which shouldn't be there....I would have gone completely bonkers without the support of the local special needs playgroup when my children were young and it only cost me £1 a week.

I now volunteer for them to give something back to the community.

PasturesNew

Charities do have high pay. They rely on a lot of volunteers, but those in paid employment with them are quite often highly paid.

I think the trouble with charities is there are too many of them. If you could actually get help from a charity you never would because you'd never know they existed.

A lot seem to overlap and rent expensive buildings.