Likely Tax Changes: Consultative Document on National Minimum Wage

Posted on: 28.07.2010    10:37:06

On the last day of the current parliamentary session the government chose to release 9 consultative documents linked to the aim of simplifying UK taxation.

The one with the most impact on the recruitment industry can be accessed here as it relates to National Minimum Wage interpretations inked to transport.

Trade associations will no doubt be commenting in the days to come but the big failure is that the improved protection of low paid employees will actually boomerang as recruitment agencies decide to withdraw from transport provision to avoid yet more onerous legislation.

Ironically the changes will prove to be inflationary raising the labour the cost of British industry through higher pay rates at a time when costs need to be tightly controlled.

 

Author: Chris Slay

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