Many Agencies may be trading unlawfully after 6th April.

April 6th sees the introduction of The Conduct of Employment Agencies and Employment Businesses Regulations. One change is that Agencies can no longer supply and pay temporary workers. This was a popular model when supplying clients who could not claim back VAT and VAT was only charged on the fee above wage costs. From 6th April that is no longer an option. Our discussions suggest that this change has not been adequately reported to alert many parts of the industry in good time. Unless Agencies restructure their contracts and perhaps trade as Employment Businesses, they could find themselves in difficulties in tribunals, with Customs and Excise and possibly the DTI, although we all hope they will tread lightly and allow time for change in this area. Quick links to the appropriate government sites can be make via