Specialist Accountants for Administrative & Support Services

Recruitment agencies acting as employment businesses (supplying temps who are on the agency's payroll) must charge VAT on the full invoice value to the client — not just the margin. Only introductory services where the worker becomes the client's employee can potentially use margin VAT. This distinction is critical because getting it wrong can result in significant HMRC assessments. We ensure your VAT treatment is correct and file MTD-compliant VAT returns. Learn about VAT services.

This distinction has major tax implications. An employment business supplies workers who remain on the agency's payroll — the agency is the employer, handles PAYE/NIC, and charges VAT on the full invoice. An introductory agency introduces workers who become the client's employee — the agency charges a fee (placement fee or percentage) and VAT may be on the margin only. The distinction affects VAT treatment, employment rights, auto-enrolment obligations, and holiday pay liability. We help determine your correct classification and structure. Explore payroll services.

Temporary worker payroll is complex: weekly payroll runs, varied hourly rates, holiday pay accrual (12.07% method for irregular-hours workers), auto-enrolment assessment (postponement possible for short assignments), and RTI submissions to HMRC. For construction sector temps, CIS deductions may apply. For security, SIA badge validity must be tracked. We handle the full payroll burden — calculating pay, deductions, pensions, and filing all returns. View payroll services.

Cleaning businesses can claim: cleaning products and consumables, equipment purchases and repairs, workwear and PPE (gloves, aprons, safety footwear), travel between client sites (mileage or actual costs), staff wages and uniforms, insurance (public liability), advertising and website, home office costs, telephone, and bank charges. Larger capital items (industrial machines) may qualify for capital allowances. See self assessment services.

FM companies often provide multiple services (cleaning, security, maintenance, waste) under a single contract. Under FRS 102, bundled contracts should have revenue allocated to each distinct service if they are separately identifiable. This allows accurate profitability analysis per service line. For VAT, multiple supplies within a single contract may have different VAT treatments (e.g., security is standard-rated; some waste services may be reduced-rated). We ensure correct revenue allocation and VAT treatment. Explore annual accounts.

For most B2B support service businesses (recruitment, FM, security, BPO), a limited company is recommended: limited liability protection is essential when employing staff, corporate clients often require Ltd status in contracts, and it's more tax-efficient for profits above £50,000. Sole trader may suit smaller office admin or virtual assistant businesses with minimal risk. We analyse your client base, staffing levels, and profit projections to advise on the optimal structure. View company formation.