Beginner’s Guide on Starting a Maid Agency in the United Kingdom
If you’re relatively green in this sector, it shouldn’t necessarily be a setback when starting a maid agency in the United Kingdom. However, it may mean that you’re going to exert more hard yards when it comes to networking and establishing a name for yourself. Besides, to be prosperous in recruitment, you must build and cultivate relationships and strong intuition. Again, you must possess the passion for matching good people with great jobs. Similarly, to get the best out of this recruitment practice, you must be able to strike a balance between long-term relationships—putting your brand out there and cultivating new opportunities.
With that in mind, here’s a guide on starting a maid agency in the United Kingdom.
A maid agency business in the UK corporate service provider that places domestic staff into vacant roles. This means you’re saving your clients with the hassle and time in finding suitable candidates. Running a maid agency firm involves seeking out candidates through advertising, networking, and referrals. You then screen and interview them before putting them forward for a client’s consideration.
The vetting and screening of candidates are lengthy to ensure that they are the right fit. The recruiters go as far as checking their DBS—whether or not they have any criminal records.
Business Registration Process
As an aspiring entrepreneur, once you have decided that you want to start a maid recruitment agency, the next right thing is company incorporation. You must first register with the HM Revenue & Customs in the UK through the government’s website portal. The moment you do so, you’ll be prompted to choose one of the three kinds of businesses to register. This will include either a Sole trader, a Limited Company, or an Ordinary Partnership. It also requires you to register for VAT (Value-Added Tax) if your VAT taxable turnover gets over eighty-three thousand pounds.
When starting a maid agency in the United Kingdom, the law requires you to comply with The Conduct of Employment Agencies and Employment Businesses Regulations 2003. The regulation introduction aims at providing workers and hirers with minimum standards they could expect from private recruitment agencies.
Every form of business requires a business license to operate. For recruitment agencies, the ordinary type of business license is a Notification to Process Personal Data. The recruiting agency can apply for this type of license through the Information Commissioner’s Office.
Data Privacy Laws
As a recruiting agency, more often than not, you’ll be handling confidential information. And for that reason, you must comply with the UK’s stringent data privacy laws defined under the Data Protection Act 1998. Under the Data Protection Principles within the Act, businesses will ensure they handle the information fairly, lawfully and for the stated purposes. Likewise, it’s important to register your company with the ICO (Information Commissioner’s Office) to acquire the Data Protection Certificate. Again, you’ll only incur a minimal cost in acquiring the certificate.
When it comes to recruiting staff, here is a short guide that you can follow:
- As an employer, you must register with the HM Revenue & Customs.
- Secure an Employer’s Liability Insurance from an accredited insurer. Failure to comply, you attract heavy fines.
- As a recruiter, you must pay a salary above the UK National Minimum Wage for workers above 25.
- Verify that any staff you hire has the right to work in the UK legally.
- Verify whether you need to enrol your staff into a Workplace Pension Scheme automatically.
- If you’ll be having an employee working for you for over one month, ensure you send them the details of the job in writing.
- If your maid agency business is working with children or vulnerable people, you must apply for a DBS Check.
The moment your business is well-known, and you have a considerable number of staff and clients and an office space, the next thing is securing a Public Liability Insurance. This insurance covers injuries or losses experienced by employees or clients within your premises. In addition, other clients may be required to have additional insurances such as Professional Indemnity Insurance.
Establishing Your Recruitment Business
If you plan to start a maid agency in the United Kingdom, it is essential to follow the right guide to company registration in the UK.
Select a Business name
There are certain restrictions in the UK when it comes to selecting a business name. The reasons are to prevent businesses from using names that are similar to other existing businesses. Therefore, you must come up with a unique business name that reflects your business’s nature.
Register At Companies House
The process of registration only takes 24 hours as long as the documents are correctly done. This can only happen when you have your company name complete. It follows that once your business is registered at the Companies House, it’s automatically registered for corporate tax. The HMRC, after that, sends you your company’s UTR number.
Domain Name Registration
Another vital process is registering your company domain name for your website and email. Ensure that the name is simple, memorable, and accessible to both clients and candidates online.
Open a Bank Account
Operating a maid agency will require you to open a bank account. Therefore, selecting the right bank at the initial stages is extremely important. The standard charges for new startups are fairly low across the board.
Documentation and Legal Contracts
It is important to protect your agency from any legal claims and ensure your clients make payment against your invoices. It’s important to have a robust set of Permanent Terms and Conditions, Client and Candidate Contract Agreements. Likewise, you must have well-articulated Internal Staff contracts. Institutions such as REC possess contract template services or even from an employment lawyer. If you need help on such matters, you can always contact 3E Accounting.
Internet and Telephone
As a recruiter, you’ll require a phone that will be of great service to your work. Ensure that you have a separate mobile phone that is memorable from your personal phone. You also have the option of getting a landline for clients or candidates who might opt for it. In today’s age and time, companies are in the digital world; therefore, you must have the internet. It is important to have a good connection in the office, home, or mobile phone. This makes you more competitive in an industry where there is fierce competition.
Accounting Support and Office Logistics
As you’ll be engaging with many clients and candidates, you cannot do without an accountant to help in your financial matters. An experienced accountant will ensure that you remain compliant with HMRC regulations. Alternatively, you can opt for office management services during the initial stages while operating as a sole trader. You can outsource mundane tasks such as taking and diverting calls.
Do Initial Networking
Networking is one art that you should practice right from the start, even when you’re off-duty. As a beginner, spend time getting to understand your clients personally. You can always begin gathering your clients’ way before officially opening your business. As your maid agency business grows and becomes well known, your brand will start to play a bigger role in your business.
With the advent of technology, you cannot be left behind. Investing in a recruitment management system like cloud-based software is the solution to minimizing your costs. Again, it allows you to work remotely and consolidate all your recruitment tasks and documents in one place.
Licences and Permits Needed for Starting a Maid Agency in the United Kingdom
One of the common practices in the UK is the employment of foreign staff. If you’re planning to hire foreign workers, there are certain licences and permits you should consider.
Recruiters who regularly hire domestic staff must understand the employment law governing the sector. An institution must accredit the work permits for non-EEA nationals with a sponsorship licence. Your agency can apply for either a short-term sponsorship licence for workers or full time depending on the institution’s requirements. The good thing about a sponsorship licence is that it attracts global talent for job opportunities as it covers a broader pool.
Right to Work
Entrepreneurs with plans of starting a maid agency in the United Kingdom must check the worker’s eligibility to work. They should also verify for how long these workers can work in the UK. You’ll attract a hefty fine and a jail term of up to five (5) years if you hire illegal immigrants. To check the possibility of whether or not someone is eligible to work, you can verify on the Home Office website.