You are ready to set up your own recruitment business. But are you ready for the changes and the responsibility?
I think so. It will be a big change of course but….
That’s not actually what we meant…
Sorry? I thought you meant the change from employee to employer…
Well, yes, we do, but we were being rather more specific than that. We can come back to the whole setting up your business thing, but meantime we wanted to mention the changes in legislation you’ll need to keep up with.
We’ve been here before, haven’t we?
Yes. Quite recently actually. We were talking about compliance and the need to have legal advice on hand. But this is something else. Or at least another example of how things change and why you need to stay on top of it all.
Do tell…
We were thinking about the way responsibility for IR 35 is changing, and how it affects recruitment businesses.
This is to do with being self-employed or something?
Sort of. Look, let’s not go into too much detail but in a nutshell, the government is changing some rules. IR 35 is a piece of legislation that covers tax, and from now on when a recruiter places a contractor with the public sector, the contractor no longer determines their own tax status.
And that means what to a recruiter?
To put it bluntly, a lot of paperwork and calculations.
Is that really too big a challenge?
Possibly not for a person of your calibre. It’s just that you could be responsible for calculating tax and NIC on gross incomes, as if the person is employed, after allowable expenses. Then there’s the probability that you’ll need to hold money and pay HMRC each month and report on the pay run. Oh, and assume responsibility for the accuracy of reporting. Just saying.
It sounds complicated.
It’s not straightforward. You see, it’s not a question of whether or not a contractor is caught by IR 35; that hasn’t changed. What has changed is the responsibility for determining IR 35 status.
I thought you said we needn’t go into too much detail…
Fair point. We don’t. Not here anyway. What we’re talking about is the fact that legislation changes all the time. This is just one example. It’s about you as a recruitment business having the knowledge, skills, and expertise to be up to speed with it all; all of the time.
I’m sensing that you can help. Or do I mean I’m hoping that you can help?
We can. The Recruit Venture Group specialise in backing start-up recruitment businesses. Full initial funding is just part of the package. You’ll also receive shares in and dividends from, your own business. Plus you have access to a complete back office and support system.
Our backing means you’ll be able to pay yourself a salary from the get-go, so you’ll be able to maintain your lifestyle and concentrate on the business. And – we have legal and taxation experts you can call on for advice at any time.
I’m beginning to feel reassured.
Good as we are here to help.
Help is good. But this would be my own business I’m setting up, Right?
Absolutely. You run it. But you don’t run the risk. And with legislative changes, there can be risks over and above the usual ones of starting a company. The IR 35 issue for example. It could prove really demanding, not to mention time-consuming for a recruiter to make sure that every single public sector candidate placed is being taxed correctly. And getting it wrong could mean paying the bill!
See – now I’m getting worried again!
There’s no need. Look at it this way. You’re going to be running your own business, but with the backup and support to let you concentrate on just that. Running the business.
Ok. I’m excited again. How do I start talking to you?
Email us at info@recruitventures.com We’ll get you into business, and let you get on with the business.