Digital Recruitment Agency Accounting in London
Built for the Pace of Staffing
Specialist digital accountants for UK recruitment agencies managing temp and perm payroll, staffing VAT,
management accounts, and annual compliance on a fixed monthly fee.
- Making Tax Digital Ready
- Fixed Monthly Fees
- CIMA Regulated
- Serving UK Clients Nationwide
Who This Service Is For
Our Digital Recruitment Agency Accountants service is designed for UK recruitment agencies at all stages. From boutique startups placing their first perm candidates to established firms running multi-division temp desks. We work with agencies specialising in IT, healthcare, construction, executive search, industrial, and professional services.
What's Included with Our Digital Recruitment Agency Service?
- WHY TDA
Why Choose TDA
FAQ
Frequently Asked Questions
The VAT treatment depends on how you operate. Employment businesses (those who supply temporary workers to clients and pay them directly) charge VAT on the full fee, including the worker’s pay element. This is a standard-rated supply. Employment agencies (those who introduce workers who then contract directly with the client) charge VAT only on their introduction fee. Misclassifying this is a common and costly error. We apply the correct treatment for each of your income streams.
Temp payroll involves high volumes of variable-pay workers, often on weekly cycles, with irregular hours, multiple assignments, and holiday pay accrual obligations under the Working Time Regulations. It also involves processing starters and leavers constantly, managing AWR (Agency Workers Regulations) compliance, and reconciling payroll to margin reports. We handle all of this as part of your service.
Yes, if your temps meet the age and earnings thresholds. The auto-enrolment rules apply to temporary workers in the same way as permanent employees — if they are aged 22–66 and earn over £10,000 per year (or £833 per month), you must automatically enrol them in a qualifying workplace pension. We manage all auto-enrolment administration as part of your payroll service.
We set up your cloud accounting system to track income and costs by division or team — permanent, temporary, executive search, or however your business is structured. Each month, your management accounts show gross profit by division, fee-earner productivity, overhead allocation, and net profitability. This gives you the data to manage performance and make resourcing decisions.
Yes. Many recruitment agencies use invoice financing or factoring to fund temp payroll ahead of client payments. We work with your funder’s reporting requirements by producing debtor reports in the format they require and reconciling funded invoices monthly. We can also advise on selecting a suitable funder and structuring your facility.