Multi-sector recruiter Michael Page International is to return £12m to the taxman by the end of the month, following an agreement on overpaid VAT.

In a statement the group said: “On 5 March 2010 Michael Page International  announced that an agreement had been reached in principle, subject to legal contract, between Michael Page International and Her Majesty’s Revenue and Customs (HMRC) in respect of the initial claim for a refund of overpaid VAT plus statutory interest.

“On 30 April 2010, a formal agreement was signed with HMRC. As a result, of the £50m originally received from HMRC, Michael Page International will retain £38m and will return £12m by the end of May 2010.

“Accordingly, after fees, Michael Page International will recognise approximately £28m as non-recurring income in its 2010 Income Statement.    

“In respect of the amended claims for a further refund of an additional £80m, net of fees, of overpaid VAT there have been no further discussions or meetings with HMRC and Michael Page International will continue to pursue the claim.”

Michael Page adds that it will update the market on further developments relating to the claims when appropriate.