Financial services 'among sectors hit by new recruitment rules'

The Recruitment and Employment Confederation (REC) has warned that new rules could hike the cost of hiring temporary workers.

According to Personnel Today, the REC stated that recruitment costs for companies hiring staff to do temporary sales jobs or occupy other roles could rise by £400 million due to plans announced earlier this year.

The Chancellor stated in the last Budget that the staff hire concession that enables employment agencies to charge VAT solely on the commission aspect of their supplies will be abolished from April 2009.

From that date, VAT of 17.5 per cent will be charged on the wages of temporary staff, with industries including the financial services sector hit the hardest.

Anne Fairweather, head of public policy with the REC, said: "Evidence from the affected sectors suggests that the cost could be to the tune of £400 million."

The REC's membership comprises some 8,000 recruitment agencies and businesses, as well as 6,000 individual recruitment professionals.

As a recruitment provider to many of the UK’s major banks, mortgage lenders and building societies Aaron Wallis have a deserved reputation within Financial Services recruitment. Their dedicated FS consultants recruit sales professionals across Retail Banking and Financial Services including IFA’s and Mortgage Broking.

Filed: 07-08-2008