Jobs

For years, recruitment companies have had a tough time on competing over price. Some have changed their way of thinking and with very little work been able to cut out unwanted costs such as employers NI and holiday accrual, which we all know can cost us and add to the final bill you charge the client.

What if you could change that and outsource your payroll? Not only could you save money, but you could also give your recruits the chance to earn more and maximise their income through a range of different options.

If the only thing you would need to do to benefit from this way of working was to allow us to speak with the people on your books to run through the benefits and then we take care of the rest. Then would it sound like something you would take on?

Many companies like yourselves have already gone this way and we would be happy to sit down and go through the entire process and benefits with no obligation at a time that suits you.

As a recruitment company, how can this benefit you as a business?

Due to employment and tax legislation if you choose to take on self employed personnel, the employment agencies are required to work within a tax and employment compliant system through a commercial subcontractor Such as Weego limited, the reasons are listed below.

 Benefits to Recruitment Company or end user

• No employer responsibilities
• No employer National insurance liability
• No holiday pay
• No payroll costs
• HMRC Compliant

To give an idea of the calculations and to put it in monetary terms see the below example.

 Comparison of PAYE and Contractor charge rates

            PAYE

• Calculated on a pay rate of £10 per hour
• Employers NI 13.8% £1.38
• Holiday Accrual 12.07% £1.20
• Agency charge £1.25
• Total Charge Rate £13.83 per hour per temp
• Working week of 40 hrs £553.20 per temp

            Contractor

• Pay rate £10 per hour
• Agency charge £1.25
• Total Charge Rate £11.25 per hour per temp
• Working for 40 hrs £450 per temp
• Saving of £103.20 per temp per week

Based on 20 temps saving of £2064 per week £107328 saving over 12 months

This saving can be passed on to the end user to enable the Agency to obtain new business or can be retained to maximise profits. Self employed contractors operate outside the Working Time Directive. Therefore the Agency can relinquish employer employee responsibilities.

  Who else does it benefit?

The agencies are not the only ones that benefit, the contractor also benefits. I have laid out some of the benefits below.

 The benefits to the contractor themselves for the following reasons:

• Gross payment
• Reduced NI payment
• Ability to offset legitimate expenses
• No limited company responsibilities
• Flexibility to work for clients who work only with limited companies
• No set up costs or opt out costs
• Daily payroll
• HMRC Compliant
• The option to maximise your earnings through our Flat Rate VAT Scheme. Where contractors have been able to take home on average an extra £2500 per annum, plus they may be eligible to claim monies back from previous contracts up to 4 years if they have previously been self employed.