Upper Tribunal hearing on VAT and temporary workers (Adecco v HMRC) this week

The Upper Tribunal will this week hear the the case Adecco UK Ltd & ors v The Commissioners for HMRC (UT/2016/0037). The litigation relates to Adecco’s claim for over-paid VAT on wages of non-employed temporary workers. The First Tier Tribunal found in favour of HMRC although the Tribunal Chairman recognised that this decision was at odds with the finding in Reed and anticipated an appeal to a higher court.

This remains a significant issue for the sector and CTG has worked with charities and advisers to support the case, with the current cost to the sector estimated to be more than £20m a year. Further background on the case and the decision in the First Tier Tribunal can be found here.