20 March 2017 
Andrea Marshall, Tax Specialist
The Upper Tribunal has dismissed Adecco's appeal against the decision that it should charge VAT on the full charge for temporary workers supplied to its clients (i.e. including the elements for the workers' wages etc. rather than just on Adecco's commission).
Deloitte has commented that the "decision focuses exclusively on the contractual position, and considered it significant that the temps had no direct contract with the clients, and were paid by Adecco rather than by the clients. There is, however, little analysis of either the impact of the Employment Business Conduct Regulations (which affect the legal form of temps’ employment) or of the question of whether the client (rather than Adecco) consumes the services of the temps. The decision therefore potentially leaves scope for further clarification of the relationship between contractual analysis and economic reality."
