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Introduction to employment bureaux

Employment bureaux include businesses which introduce workers to potential employers and businesses which supply the services of their own employees. See V6.235 and V6.236 for VAT issues pertinent to employment bureaux. This article focuses on the liability of supplies and activities of such businesses including the important topic of agency while V6.236 looks at VAT recovery and other practical points for the sector.

Liability of supplies of employment bureaux

Depending on whether an employment bureau acts as principal or agent (see 'Agent vs principal for employment bureaux' below) it will typically make:

1. Ìý

   •ÌýÌýÌýÌý supplies of staff

2. Ìý

   •ÌýÌýÌýÌý supplies of introductory services

Both of these activities will normally be standard-rated (although see 'Healthcare staff and employment bureaux' below for activities which may be exempt) and therefore most supplies of employment businesses will be taxable. However, there can be a distinction in the 'place of supply' depending on whether the employment bureaux is acting as agent or principal so the characterisation