Ready to launch, fast track for start-ups
Outsauce introduced our Principal Product to suit two types of Recruitment Agency; agencies that trade occasionally and new start agencies that work within the construction sector.
Our main product means the Recruitment Agency will enter into their own contracts with clients. Our clients who benefit from our Principal products have their clients sign Outsauce Principal terms.
I run an agency that trades occasionally, how will the Principal Product work for me?
- Your customers and candidates will enter into
contractwith Outsauce Principal and you will act as an ‘introducer’.
- We will obtain Credit Insurance on the introduced end client.
- Once authorised timesheets have been submitted, we will process Payroll and administer the associated HMRC liabilities.
- Once payroll has been processed, the remaining margin minus our service fees will be made available. This is called the introducer fee.
- We will undertake all Credit Control duties so you can concentrate on introducing new business and placing candidates.
I run a new start agency that supplies staff to the Construction Industry, how will the Principal Product work for me?
Until your business obtains Gross CIS status, your end clients will be required to make a 20% deduction against your invoices. The 20% deducted will most likely be more than your gross margin as a new start agency and therefore creates an impossible position financially.
As a client using the Outsauce Principal Product, you are able to use our Gross CIS status and receive payment in full. This addresses the cash-flow issue and allows you to concentrate on building your business.
Once your turnover has exceeded the required threshold of £30,000 per Director, you will be able to apply directly for Gross CIS status.
Want to know more about our CIS Admin support click here