VAT Risks in UK Recruitment Under Joint and Several Liability Rules

• JSL has increased compliance pressure on recruiters, agencies, and labour supply businesses, but PAYE compliance alone does not remove risk.
• HMRC is increasingly scrutinising labour supply chains and some providers may be shifting tax planning from employment taxes to VAT, creating new exposure.
• Recruiters should be wary of “fully compliant” solutions that focus heavily on PAYE while giving vague or limited explanations about VAT.
• HMRC can challenge arrangements holistically, especially where structures seem designed to gain unintended VAT advantages rather than reflect real commercial substance.
• The strengthened POTAS regime expands HMRC’s reach beyond scheme promoters to facilitators, introducers, intermediaries, and others in the supply chain.

Source: theglobalrecruiter.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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