Accounting and invoicing for recruitment consultants
Retainer on engagement, success fee on hire, shortlist and guarantee period: recruiters have invoices in stages with high single amounts. Saldiqo issues retainer and success fee separately, reminds on open items and creates credit notes when the hire fails.
What comes up for recruitment consultants
Invoices in stages
First instalment on engagement, second on shortlist, third on hire. Each has its moment.
Guarantee period
If a candidate leaves in the probation period, a credit note or a replacement follows.
High single amounts
A fee is often a third of a yearly salary. Payment terms and follow-up matter.
How Saldiqo helps
- Invoices in stagesRetainer, shortlist, success as separate invoices or stage invoices.
- Credit note on a guarantee caseLinked to the original invoice.
- RemindersKeep open items in view.
- Cost centre per mandateEffort and return per mandate.
Typical invoice lines
Examples that often appear on invoices in this industry. You set the prices yourself.
- Retainer on engagement, mandate 2027-14
- Shortlist presentation, 3 candidates
- Success fee on hire, 28 % of yearly salary
- Job advert re-invoiced as per receipt
- Credit note: leaver in probation
- Sourcing effort by the hour
Tax and invoicing in the UK
What applies to invoices in the UK, in short. As of October 2026.
- VAT
- Standard rate 20 %, reduced rate 5 % and zero rate 0 %. Saldiqo calculates each invoice line with the rate you pick.
- VAT registration
- You must register once your taxable turnover passes £90,000 over any 12 months, or you expect to pass it within the next 30 days. You can deregister below £88,000. Until you are registered, your invoices show no VAT, and Saldiqo adds up your 12-month turnover for you.
- What goes on an invoice
- If you are VAT registered: your VAT number, the tax point, unit prices and the VAT total in pounds. A limited company shows its registered name on every invoice, and its company number, registered office and part of the UK on letters, order forms and the website.
- E-invoicing
- There is no mandate today. From April 2029 e-invoicing is planned for all B2B and B2G sales that carry VAT, through Peppol. The exact date and standard are not yet in law, and the government’s roadmap follows with the Budget on 28 October 2026.
- VAT returns
- VAT returns go to HMRC through Making Tax Digital, usually quarterly, due one month and seven days after the period. Saldiqo shows sales and VAT per rate and exports CSV. It does not submit to HMRC, and for Making Tax Digital you need software recognised by HMRC.
- Record keeping
- Keep VAT records for 6 years.
- Late payment
- Statutory interest on late business payments is the Bank Rate (3.75 % in the second half of 2026) plus 8 points, so 11.75 %. On top comes fixed compensation of £40, £70 or £100, depending on the amount owed (under £1,000, from £1,000, from £10,000). Consumers have no statutory interest.
- Getting paid
- Your sort code and account number are on every invoice. Customers pay by Faster Payments or Bacs, and banks check the account name with Confirmation of Payee. There is no QR standard in the UK.
Frequently asked questions
How do I bill retainer and success fee?
As stage invoices from the quote, with a line per stage.
How do I treat a guarantee case?
With a credit note to the success invoice if you repay fees.
Do recruitment consultants in the UK have to charge VAT?
Only once they are VAT registered. Registration is required when taxable turnover passes £90,000 over any 12 months, or is expected to within the next 30 days. Below that you may register voluntarily. If you are not registered, you must not show VAT on your invoices.
Do recruitment consultants in the UK need e-invoicing?
Not today. A mandate for B2B and B2G sales with VAT is planned from April 2029, and the details were still open as of October 2026. You can keep sending PDF invoices for now.
How long should recruitment consultants keep invoices?
Keep VAT records for 6 years. You can store receipts digitally in Saldiqo. The legal duty to keep records stays with you.
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As of October 2026. General information, not legal or tax advice, without guarantee. For your case ask your tax adviser.