Blogs
HOW DOES VAT WORK ON INTERNATIONAL PLACEMENTS?
When making recruitment placements within the UK, whether permanent, temporary, or contract, a UK-based recruitment agency that is registered for VAT will charge VAT on the net invoice value to its UK client (except for placements covered by the Nursing Agency Concession). However, when a UK recruitment agency makes a placement (permanent, temporary, or contract)…
Read MorePOST-HOLIDAY BLUES… MAYBE YOU SHOULD CONSIDER STARTING YOUR OWN AGENCY
July and August are traditionally when recruiters take a well-earned break, whether it’s a staycation in the UK or a trip abroad, to recharge and reflect on their careers. For many, this downtime becomes a period of clarity and decision-making, and it’s often when the idea of launching their own recruitment agency starts to take…
Read MoreWHY PERMANENT RECRUITMENT AGENCIES SHOULD CONSIDER PLACING CONTRACTORS
In a competitive and fast-evolving recruitment landscape, agencies that focus solely on permanent placements may be missing out on a steady, scalable revenue stream. Contract recruitment offers not only consistent income but also increased business value and deeper client relationships. Unlike permanent roles, which are often subject to delays and unpredictable start dates, contract placements…
Read More3 BENEFITS OF INVOICE FINANCE FOR RECRUITMENT AGENCIES
When a recruitment agency places a temporary or contract worker, the worker typically expects to be paid within seven days of submitting their timesheet, regardless of whether it is submitted weekly or monthly. However, many clients operate on 30–60-day payment terms, creating a funding gap that agencies must bridge. This cashflow gap can be covered…
Read MoreMAXIMISING YOUR SHAREHOLDING POSITION
Most recruitment agencies are registered at Companies House as limited companies, allowing the business owners to hold shares in the company. The number of shares and the rights attached to each share class are agreed upon and allocated accordingly. Owning shares typically enables business owners to receive dividends, profit distributions made after corporation tax has…
Read More“I HAVE A POOR CREDIT RATING, WHAT CHALLENGES WILL I FACE IF I START MY OWN AGENCY?”
This is a question MAYACHI has heard many times over the years. It’s not uncommon for recruitment consultants to face financial issues, such as unpaid creditors or loan defaults, that lead to County Court Judgments (CCJs) and poor credit ratings. While having a bad credit score doesn’t prevent someone from setting up their own recruitment…
Read MoreWHY DO RECRUITERS INSIST ON DOING THEIR OWN INVOICING?
One of the most common frustrations we hear at MAYACHI when speaking with recruitment directors is their insistence on handling their agency’s invoicing themselves. Phrases like “It doesn’t take too long” or “It’s quicker if I do it myself” are often just excuses and signs that agency owners are reluctant to give up control over…
Read MorePERMANENT FUNDING, IS IT WORTHWHILE?
Invoice finance is a staple of the recruitment industry and is widely used by agencies making contract and/or temporary placements. These types of placements require access to funds to pay candidates before the client settles the invoice. However, recruitment directors often ask MAYACHI whether they should consider using invoice finance to fund permanent placement invoices…
Read MoreWHAT CAN I DO IF A CLIENT REFUSES TO PAY MY INVOICE?
Every recruiter loves to celebrate when a deal is signed and a candidate is due to start on-site with a client. However, from a business owner’s perspective, the deal isn’t truly complete until the client has made payment. Most clients an agency works with will pay within the agreed terms, or occasionally slightly later, to…
Read MoreHOW CAN AN AGENCY REDUCE CURRENCY LOSSES?
Overseas placements are becoming increasingly popular among recruitment agencies, thanks to higher profit margins and growing opportunities with international clients. While the process of making these placements is often similar to placing candidates in the UK, one key difference is that international placements are typically not conducted in sterling. As a result, agencies must manage…
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