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Fears over VAT change.

SMALL and medium sized businesses could have to fight for survival if proposed tax changes by Customs and Excise become law.

Business adviser Grant Thornton, which has a branch in Queens Road, Coventry, has issued the warning about proposed new VAT regulations.

The firm believes they could price temporary workers out of the market and force employers in some sectors to seek new ways to address fluctuating staffing needs.

Currently, employment agencies are only required to charge VAT on the commission they receive but, if the changes come into force, tax will be due on agency workers' wages too.

Douglas Gordon, VAT partner at the Coventry branch, said: "Blue chip companies can probably continue to make sparing use of temporary workers but smaller enterprises could really lose out."
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Title Annotation:Business
Publication:Coventry Evening Telegraph (England)
Date:Sep 4, 2000
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