Employers have warned that an estimated 25,000 London temp jobs will be lost within months because of a new tax on work.
The proposed change means that from 1 April, all employers will have to pay VAT on the cost of hiring temps including their pay. This could see many companies stop using temps including charties and hospitals who are highly dependent on contract workers.
It is reported that the extra VAT will put £400 million on to temp wage bills and increase unemployment.



