Blogs

Over the past few months, MAYACHI has spoken with several startup recruitment agency directors who have questioned whether they should register for VAT as a new business. In some cases, they have consulted their accountants, who advised that, since their turnover is currently below the VAT registration threshold of £90,000, registration is not required. However,…

The decision to start a new recruitment agency often brings a mix of feelings from apprehension to anticipation, particularly for directors transitioning from employment into business ownership. While launching a new venture is an exciting opportunity, it is crucial to understand the financial responsibilities involved, especially when moving away from the stability of a guaranteed…

When launching a new recruitment agency, there is a long checklist of tasks that directors must complete before they can begin trading. One of these tasks is appointing an accountant. However, this is often placed near the bottom of the list and not treated as a priority. By the time directors turn their attention to…

Invoice finance is a common requirement for recruitment agencies engaged in contract and/or temporary placements. It bridges the funding gap between the candidate’s payment and the client’s settlement of the invoice. However, the terminology used within an invoice finance quotation or agreement can often be complex and, at times, confusing. It is, therefore, essential to…

VAT (Value Added Tax) can be an enigma for new start-up recruitment agencies, as often they have not had to deal with VAT in their previous roles as employees. However, as a new agency owner, understanding VAT is essential as it is a constant and critical element of running a business. Recruitment agencies should register…

One of the most common questions asked by recruiters looking to start their agency is: “How much does it cost to start a recruitment agency?” While costs can vary depending on whether the company wants a flashy website or access to premium job boards, the overall cost of setting up a recruitment agency can be…

Over the past 15 months, MAYACHI has met with nearly 100 recruitment agencies to review their current back-office, funding, and accounting setups. In many cases, recruitment directors have limited understanding of their own financials or whether the work completed by their accountants is genuinely beneficial and adding value to the business. Often, due to this…

Invoice finance is essential for recruitment agencies making contract and/or temporary placements, as it provides advance funding to pay contractors before the client makes payment. This funding bridges the cash flow gap and prevents the agency from using its funds to pay workers. However, when an agency engages with an invoice finance provider, the quotations…

On 6th April 2014, HMRC introduced the Employment Intermediaries Reporting requirements. This quarterly report must be completed by recruitment agencies to declare payments made to workers they place with clients, provided these workers are not paid via the agency’s PAYE scheme. If the agency pays candidates through its own PAYE system, the relevant data—such as…