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 today’s 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 don’t 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 they’re not VAT registered and reduce their unrecoverable VAT
burden by up to 80%, which helps to lower their costs – and it won’t 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 I’m making is that it doesn’t 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!
For more information visit
our website www.simplicityinbusiness.com and please feel free to
contact us for a no obligation consultation on 01594546585 or sales@simplicityinbusiness.com.
Thanks. vatsimply sounds like a great idea. I would be interested to find out the details. Great post.
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