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UK – REC wants more transparency in taxation rules

20 July 2012

The Recruitment and Employment Confederation (REC) said today it had contacted HM Treasury to “flag a number of ongoing taxation concerns for the UK recruitment industry,” including consistent enforcement of rules regarding travel dispensation schemes. The association, which represents 3,750 staffing firms in the country, said it wanted “to ensure that personal taxation rules facilitate flexible working patterns.”

In a submission to the Treasury, the REC emphasises an “urgent need for clarity and consistency in the way that taxation rules are applied to the recruitment sector.” This relates especially to travel dispensation schemes as the association aims to achieve a “level playing field” for its members. It argued that, despite tighter resources, the HMRC has to “make a step-change in its enforcement activities.”

Regarding other taxation issues, the REC is trying to improve the implementation of IR35 rules for self-employed contractors. It warned that proposals for moving all ‘controlling persons’ onto the payroll as employees would undermine flexibility in the labour market.

“Our message to government is that the key to successfully using contractors and interims lies in sound management of contracts and staff, rather than restrictive, one-size-fits-all regulation,” the REC said. Members firms will be updated on the developments.

The REC represents the interests of the UK recruitment industry. It aims to raise standards in the staffing industry and all members must abide by the REC Code of Professional Practice.


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