Reimbursement of staff costs

The supply of staff is taxable at the standard rate except in very limited circumstances (see below).  The University makes a supply of staff for VAT purposes if it provides to another body, the use of an individual who is contractually employed by the University.  

By concession, if all of the following apply, the hire or loan of staff can be considered non business and outside the scope of VAT:-

• staff are seconded from the University to a charity or non-profit making voluntary organisation (a voluntary organisation does not include any public or local authority).
• The employees concerned were engaged in non-business activities (which will primarily be the case for individuals involved in Research activities) and is being seconded to assist in the non-business activities in the borrowing organisation.
• The payment does not exceed “normal remuneration” (salary, pension NIC, etc.).