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Cost Recovery
- Changes to Regulations on VAT Charging for Agency Staff
- Full Cost Recovery
- Cost Recovery
- Third Sector Resilience Fund
Changes to Regulations on VAT Charging for Agency Staff
Removal of VAT Concession on Agency Staff:
From 1 April 2009, businesses and other organisations will be charged VAT on the full value of the invoice issued by the employment agency for the supply of temporary workers.
Previously employment agencies have been able to take advantage of a concession that allowed VAT to be charged solely on the margin they make when supplying temporary workers. However, the 2008 Budget announced that the concession would be officially withdrawn and agencies will be required to charge VAT on the full value of the invoice issued by the employment agency for the supply of temporary workers.
This may adversely affect housing support providers who make extensive use of agency staff as for them it will be a new tax on employing temporary staff. More information on the technicalities of the changes can be found on HM Revenues and Customs website.
Full Cost Recovery
The Scottish Executive commissioned GEN Consultancy to report on the implications of full cost recovery.
Cost Recovery
At the SP Enabling Unit's Regional Event in Glasgow in December 2004 providers heard Martin Crewe, Assistant Director of Barnardo's Scotland, talk about the principles of Full Cost Recovery and how community care providers have been pursuing this issue nationally.
Here is the content of his presentation.
Third Sector Resilience Fund
The Scottish Government has announced that £1.7million is being targeted at Third Sector organisations which have faced either:
- an increase in demand for their services because of the recession, or
- cash flow difficulties because of the recession.
Applications for between £10,000 and £100,000 are invited from the end of October 2009 until 4th December 2009.
Applicants will be required to demonstrate clearly:
- their viability prior to the recession,
- the “shock” it has experienced as a consequence of the recession
- the need for assistance
- also, how the assistance will enable them to implement a recovery plan.
To obtain more information about the criteria go to the Scottish Government website at Resilience Fund