How you can help some clients to pay less VAT or you can be altruistic and profitable too! by David Thornhill, MD of Simplicity Our unrelenting focus as a business is to work with recruitment companies; helping agencies with funding and looking after their payroll systems on behalf of their clients. Now, more than ever, supporting agencies and helping them to be smarter in the way they work is vital with the recruitment industry under even more pressure in todays economic climate. In fact, because some clients in areas such as third sector, education and the NHS are unable to reclaim VAT on expenditure, their budgets are squeezed even tighter (sometimes freezing them!). As a result, HR departments seek greater value from suppliers to help them maximize return and protect margins. As many will remember, the removal of The Staff Hire Concession a few years back meant that agencies could no longer supply and pay Temps and businesses were also required to charge VAT on the entire invoice value and not just the margin above wage costs, which had been their only previous charge. Today this means that those in the healthcare, charity, finance and insurance sectors are still paying out more and battling the strain on their ever dwindling budgets. We dont believe this is fair to the sectors that provide some of our most important services, given their restricted funding, juggled to combine public service and paying workers; the potential downsides being possible reduction in services and redundancies. Temps are key to many businesses requiring short-term flexible staff, as it allows room to grow and shrink the workforce depending on market conditions.
This provided us with enough motivation to come up with our vatsimply product to make your clients budgets go further we can help them to make a cost saving if theyre not VAT registered and reduce their unrecoverable VAT burden by up to 80%, which helps to lower their costs and it wont even cost you, the recruitment agency, any additional money! Through vatsimply, we provide your business with 100% funding to help you and your clients cash flow, manage the weekly payroll and provide you with debt protection. What more could you ask for?!
The point Im making is that it doesnt have to be all doom and gloom for businesses in these sectors, as there are solutions like vatsimply which can help to ease the burden of paying VAT. You just need to know where to look for extra support!