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Recruitment Agency Launch Programme · Stage 2 of 10
Set Up Your Money Rails
Put the money rails in place before the first invoices and payslips move.
How long
2–4 days
You’ll have
Money rails ready to trade
Steps
4 steps
Resources
1 resources
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01 Step 01
Step 01
Open a business bank account
Keep agency money separate from your own — and for a temp desk, this account runs payroll.
Do it yourself
- Open a business current account in the company’s name.
- Apply early — approval can take several days.
- Check it supports the payment volumes a temp payroll will need.
Common mistake · Running client billing and worker pay through a personal account.
TimeA few days CostFree–£15/mo DifficultyEasy -
02 Step 02
Step 02
Get an accountant who knows recruitment
Pay-and-bill VAT, payroll, CIS, umbrella and margin reporting are specialist — a generalist will miss things.
Do it yourself
- Choose an accountant who actively works with agencies.
- Agree who handles payroll and VAT returns.
- Set up bookkeeping from day one, not month six.
Common mistake · A generalist accountant who’s never handled a temp margin or umbrella payroll.
Time~half a day CostFrom ~£100/mo DifficultyMedium -
03 Step 03
Step 03
Put insurance in place
Some is legally required; the rest, clients simply won’t contract without.
Do it yourself
- Employers’ Liability (min £5m) — legally compulsory once you employ staff or supply PAYE temps.
- Professional Indemnity — not statutory, but demanded by clients and tenders.
- Public Liability — routinely required by client contracts.
Common mistake · Assuming you don’t need cover yet — you can’t win the first client without it.
Time~2–3 hours CostVaries DifficultyMediumResource for this step
CHECKLISTAgency insurance checklist
The three covers, what each is for, and typical minimums.
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04 Step 04
Step 04
Register for VAT and PAYE
Get your tax registrations right before you invoice or pay anyone.
Do it yourself
- Register for VAT where applicable.
- Register for PAYE if you’ll employ staff or pay temporary workers.
- Let your accountant confirm which apply and when.
Common mistake · Missing a PAYE registration before your first temp payroll run.
Time~1 hour CostFree DifficultyEasy
What you’ll have after this stage
- A business bank account (and payroll account for a temp desk)
- A recruitment-specialist accountant engaged
- Employers’ Liability, Professional Indemnity and Public Liability cover
- VAT and PAYE registered where they apply