Recruitment Newsletter - Summer 2015

RAFFINGERS STUART RECRUITMENT NEWSLETTER SUMMER 2015

SMALL DETAILS

BIG DIFFERENCE *Taking control of your business with Xero and CrunchBoards

Queen’s Speech Welcomed by Recruiters

More Changes Affecting Intermediary Companies

Are ‘People Skills’ Really Important?

It has been a promising start for the new Government after new measures were announced to transform the job market.

Intermediary Companies now need to make quarterly disclosures to HMRC on any worker outside PAYE.

Having good people skills is a quality that is becoming increasingly more important to businesses.

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Contents

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PP SMALL DETAILS BIG DIFFERENCE

Welcome and Partners

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Special Feature Queen’s Speech Welcomed by Recruiters

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Company Cars: What are Your Options?

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More Changes Affecting Intermediary Companies

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3 Reasons Why UK Recruitment Agencies are Booming

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Employee Spotlight

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Client’s Story Sasudi.com: Fear of Sales

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Events 2015 - The Story So Far

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Are People Skills Really Important?

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Raffingers Stuart Join APSCo

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Partner’s Perspective Top 10 Reasons for Writing a Will

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Welcome to our RECRUITMENT SUMMER Newsletter Now that the wonderful sun is beginning to make its return, we bring you the fourth edition of our Recruitment Newsletter.

The last three months have been promising for UK recruiters. A surprising general election and a jampacked Queen’s speech have had small businesses at their core, with the government proclaiming their support and aim to stimulate growth and create jobs.

In this edition, we outline the key announcements made in the Queen’s speech that the recruitment sector should be aware of. We also discuss our previous successful seminar, ‘Taking Control of your Business’ and outline the great advantages that Xero and CrunchBoards are bringing to UK recruitment companies.

Also, with 2014 seeing 80% of UK recruitment companies exceeding their revenue goals we look into whether 2015 will see the same great results.

If you would like to submit an article for our next edition, please contact lauren.aston@raffingers-stuart. co.uk.

The Partners at Raffingers Stuart

Raffingers Stuart Partners

Gary Inglis Managing Partner gary.inglis@raffingers-stuart.co.uk

Andrew Coney Partner andrew.coney@raffingers-stuart.co.uk

Lee Manning Partner lee.manning@raffingers-stuart.co.uk 2 Adam Moody Partner adam.moody@raffingers-stuart.co.uk

Suda Ratnam Partner suda.ratnam@raffingers-stuart.co.uk

Barry Soraff Partner barry.soraff@raffingers-stuart.co.uk

Paul Dell Partner paul.dell@raffingers-stuart.co.uk

RAFFINGERS STUART RECRUITMENT NEWSLETTER SUMMER 2015

Queen’s Speech Welcomed

by Recruiters SPECIAL FEATURE It has been a promising start for the new government after a raft of measures were announced at the Queen’s speech to transform the UK economy and job market. Recruiters should now keep an eye out for the following: Cutting Red Tape In an attempt to boost economic growth, the government has confirmed a new Enterprise Bill that will aim to cut £10 billion worth of regulations over the next five years.

The bill will also look at simplifying business rates and the way in which appeals are made.

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Worker Strikes

Income Tax, VAT and National Insurance

Controversially, there is soon to be a new Employment Bill.

It was announced that the government will be looking into new rules to make worker strikes more difficult to organise. Legislation will now make it illegal to strike unless there is a ballot turn-out of 50% of those eligible to vote and around 80% of those vote in favour of striking.

Legislation will be proposed to ensure that those working 30 hours a week on minimum wage will not have to pay income tax. It was also confirmed that there will be a tax lock and no increases will be made to income tax rates, VAT or National Insurance before 2020.

The bill will also include the lifting of restrictions on the use of agency employees to replace striking workers.

EU Referendum The Queen outlined plans for legislation on an in-out referendum on Britain’s membership of the EU, which will be rushed through before the end of 2017.

It is thought the key priorities are: • Greater powers for national parliaments to block EU legislation • Free movement of labour, but restrictions on access to benefits by EU migrants • Reductions in red tape for businesses and opening up free trade with Asia and North America SMALL DETAILS BIG DIFFERENCE

Finally, it was once again confirmed that the income tax threshold will be raised to £12,500.

Apprenticeships Three million more apprenticeships have been promised over the next five years and a new law will ensure the minimum wage remains tax free. A new Jobs Bill is also likely to abolish NIC for apprentices under 25 years old and replace the Jobseeker’s Allowance for 18-21 year-olds with a Youth Allowance that will be time limited to six months.

With the government’s aim to ‘raise the productive potential of the economy’ and increase its support for small businesses, the next few years could prove extremely lucrative for recruitment agencies.

Company Cars: What are Your Options?

Company cars are one of the most desired benefits for employees and are a great perk for recruitment consultants and sales teams nationwide. However, since April 2002, a graduated system of tax has been in force, which uses a vehicle’s list price and CO2 emissions to determine the level of tax applied. In recent years the government has continually altered these bands in order to increase the tax charge; consequently, company cars are fast becoming an uneconomical and inefficient benefit.

Since April 2015, further increases to company car and fuel benefits were introduced. These now affect zero emission and electric cars. Below are two examples of the taxable benefits for 2014/15: Zero Emissions ● Car: 5% of the list price of the new car (previously exempt) ● Fuel: £21,700 @ 5% Emissions >210 g/km: ● Car: 37% of the list price of the new car (previously 30%) ● Fuel: £21,700 @ 37%

Your Options...

Low Emission Vehicles If you need to provide your team with company cars, switching to a Low Emission Vehicle or one which is electric operated is worth considering.

E.g. the new Mitsubishi PHEV GX4h Hybrid is advertised as saving businesses thousands, thanks to low petrol costs and consumptions and having one of the lowest Benefits in Kind charges (5%). It also has a fraction of the CO2 emissions of smaller cars, allowing for significant tax savings.

Pool Cars Pooled cars are extremely worthwhile where several employees drive frequently on business. In these situations, you can rotate the use of the cars to make sure you do not fall foul of any of the criteria.

Reimbursing Mileage Alternatively, to save on the cost of company cars, you can choose to simply reimburse your employees their mileage.

This saves you considerably as you are not charged on the car itself.

If you require further information on pool car conditions or mileage rates, please contact Paul Dell at paul.dell@ raffingers-stuart.co.uk for more information.

RAFFINGERS STUART RECRUITMENT NEWSLETTER SUMMER 2015

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More Changes Affecting Intermediary Companies New changes that came into effect on 6 April 2015 require Intermediary Companies to now make a quarterly disclosure to HMRC on any worker outside PAYE. Those affected are employment intermediaries who meet the following conditions: ● Is classified as an agency ● Has a contract with a client ● Provides more than one worker’s services to a client ● Makes one or more payments for the services (including payments to third parties)

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This does not include personal service companies that are under the IR35 regime already. Therefore, HMRC will now know who is not under the IR35 regime, making it essential that you are of aware of your worker’s situation.

First Return – Due Date 5 August 2015 The first return will cover the period 6 April 2015 – 5 July 2015 and will need to be submitted to HMRC online by the 5 August 2015. Returns will be due on the fifth month following the end of each quarter.

The return will need to detail the following key information for both UK and overseas workers: ● Workers name ● Full address ● National Insurance number

There is detailed guidance concerning this on HMRC’s website.

As with any return, penalties will be issued for late submissions, incomplete or incorrect returns. Penalties will fall in line with the PAYE penalty regime, however, HMRC have stated that the first offence will be subject to an automatic £250 penalty, increasing to £500 on the second offence and any further offences £1,000. Intermediary companies will also be at risk from HMRC imposing daily penalties where failure to submit a return continues.

It is clear to see that intermediary companies will have an increased exposure from the compliance team at HMRC, as such, it is key to keep detailed records and ensure accurate reporting is carried out on a quarterly basis.

● DOB ● Start and end dates of the assignment ● Explanation as to why PAYE had not been operated, for example because the worker was self-employed, a personal service company or somebody else had operated PAYE

SMALL DETAILS BIG DIFFERENCE

Should you require any further assistance or have any queries, please contact Gary Inglis at: gary.inglis@raffingers-stuart.co.uk

Three Reasons why UK Recruitment Agencies are Booming 2014 saw over 80% of UK recruitment agencies meet or exceed their business revenue goals. So, will 2015 deliver the same great results?

It is expected that 2015 will see over 90% of recruitment agencies achieve their set revenue targets, according to the 2015 Bullhorn UK Recruitment Trends Report.

With this in mind, recruitment agencies are now themselves increasing their headcount to help strengthen and grow their agencies at this exciting time (89% of agencies surveyed aim to increase their workforce in the year ahead).

So, what is causing the industry to sky rocket? Here we highlight the top three reasons: 1. Expansion – Perhaps quite simple, but you cannot ignore the rate of expansion. 36% of agencies are set to move into larger offices 2. Social Media and CRM – Both of these channels have transformed the way we have all worked. LinkedIn is one of the most powerful recruitment tools out there 3. Retention – Crucial to the running of agencies. An overwhelming majority of agencies generate half of their revenue from repeat clients

Employee Spotlight In this slot we would like to introduce you to a valued member of our team, allowing you to put a face to a name. This quarter we are back in our payroll team with Georgia.

Name: Georgia Tear Nicknames: Gee DOB: 28 May 1997 Career history: As I have only just left school, I do not have a long career history as I am still developing new skills and experience in my current position at Raffingers Stuart. However, prior to my position here, I carried out work experience at NHS offices administrating medical records.

Since starting at Raffingers Stuart in August 2014 as an apprentice, I have been given plenty of opportunities to develop my skills in the payroll field whilst being supported every step of the way by a great team. When my apprenticeship ends in August, I hope to continue my journey at Raffingers Stuart and start a CIPP course.

What is next for recruitment agencies? Looking to sustain this growth will be of paramount importance. With the economy recovered and recruitment consultants battle hardened from the previous economic downturn – the future does indeed look bright.

Interests: Music is a huge factor in my life. When I am not working, I am listening to music. When I am not listening to music, I am singing! My favourite band has been the 1975 for years, so I am extremely excited to go and see them live later this year! I have also grown up with a family who are passionate about horse riding; I find it a great escapism.

Raffingers Stuart provides specialist services to the recruitment sector, for further information please contact Andrew Coney at: andrew.coney@raffingers-stuart.co.uk

Partners Report: Georgia has been a baptism of fire. Having joined the payroll team in August 2014 as a payroll apprentice and the youngest member of our team, she has developed considerably and is fast becoming a payroll expert. With her ambition, talent (as well as her impressive pouting skills), Georgia has an incredibly bright future.

RAFFINGERS STUART RECRUITMENT NEWSLETTER SUMMER 2015

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Fear of Sales?

Sasudi.com tackles one of the biggest challenges for small business owners…their fear of sales!

We’ve been training Business Owners and Entrepreneurs for almost 20 years and whilst they’re passionate and knowledgeable about what they do, we’ve found that most of them are pretty poor at selling and are afraid of it. Over the years we’ve created a series of approaches that blend practical sales with psychological methodologies. These have been delivered face to face and have generated real sales success for small business owners.

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We’ve now found a way to scale up these methodologies via an online platform. It’s a complete and affordable solution...an integration of sales training, process, management, direction…and psychology, which combine to make sales easy. Business owners will be able to learn sales techniques by watching ‘How To’ videos, develop skills by completing training exercises, download proven templates, upload their action plans, get a boost when they’re feeling low, manage their sales funnel, create email marketing and track responses, connect with other small businesses, overcome their fear of sales and their negative self-talk...in fact, everything they need will be there...in one place! Never before has all this been available on one platform!

SMALL DETAILS BIG DIFFERENCE

Our vision is to help millions of small businesses globally to overcome the fear of sales for good and to enjoy selling themselves, their ideas and their products /services in a way that’s right for their style and personality and at a cost that all small businesses can afford. Sasudi.com is completely free for 60 days so that you can really experience how it works for you (prices then start from as little as £25 per month).

Sasudi.com launches in September but you don’t have to wait for sales help. Pre-register at the site now and get access to our twice weekly blog full of easy to implement tips that really help generate more sales.

Pre-Register here: http://sasudi.com

Key Contacts Leigh Ashton

Jonathan Mills

E: leigh@sasudi.com

E: jonathan@sasudi.com

T: 07932 164873

T: 07970 753664

Events 2015 - The Story So Far Take Control of Your Agency with Xero and CrunchBoards

Golf Day 2015

When: Wednesday 29 April 2015 Where: Eight Members Club Bank

When: Wednesday 16 September 2015 Where: Toot Hill Golf Club

Over 30 finance directors, agency owners and bookkeepers joined us for our first ever Xero and CrunchBoards event.

Following the success of our 2014 Annual Charity Golf Day, we are pleased to announce that our ninth Golf Day will be held on Wednesday 16 September 2015 at Toot Hill Golf Club.

At this event, Lee Manning guided attendees through CrunchBoards. Using a case study from an existing recruitment client, Lee showed the reports that agency owners and directors can now produce for their company, with a particular focus on the following reports: ● Sales snapshot and forecasts ● Sales by region and sales by individual team members ● Salaries to sales ● Bank balances ● Overheads as a % of income

As always, the event will bring together colleagues, clients and friends of our firm. With all money raised being donated to our chosen charity, The Lauren Page Trust.

This year, the Golf Day will be £70 per person, which includes breakfast, 18 holes on this superb course, a 3 course meal and a donation to The Lauren Page Trust.

There will be the usual competitions on the day with presentations for the following:-

● Profit and loss

● Nearest the Pin

● Gross profit of national offices

● Longest Drive

● Corporation tax liability

● Overall winner

● Property expenditure analysis and watch list

● Team prize

● ROI on advertising and marketing spend

If you would like to attend this event, please email lauren.aston@raffingers-stuart.co.uk.

● Gross profitability analysis With CrunchBoards allowing real-time reporting, attendees were able to view live reports. However, for this to be achieved, CrunchBoards does need to sync with Xero.

Therefore, Lee went on to discuss the future of accounting and the benefits that Xero is bringing to businesses.

To find out more about Xero and/ or CrunchBoards, please contact: Lee Manning, Partner E: lee.manning@raffingers-stuart.co.uk

Check out our YouTube channel for all of the videos from our seminars.

RAFFINGERS STUART RECRUITMENT NEWSLETTER SUMMER 2015

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Are ‘People Skills’ Really Important?

Having good people skills is a quality that is becoming increasingly important to businesses, whilst in the meantime is slightly undervalued by graduates.

of businesses believe that if “ 93% their employees have good people skills then the company is more likely to succeed.

“

In a recent survey by Hay Group it was discovered that 93% of businesses believe that if their employees have good people skills then the company is more likely to succeed. Therefore, employees that are approachable, self-aware and confident speaking to colleagues, managers and customers are becoming more sought after; 89% of businesses wish to recruit individuals who naturally possess these qualities.

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In contrast, further research indicates that whilst graduates appreciate that people skills are important, 70% believe that being good at their job is enough to succeed and 51% actually feel that people skills get in the way of getting the job done. This discrepancy has led to 77% of those in charge of graduate recruitment to declare that they have had to employ some graduates without the desired people skills because of a lack of choice.

These differences are a concern for graduate recruitment; although, businesses do acknowledge that just because a graduate lacks people skills, does not mean that there is no potential. After all, it would be unwise to dismiss the idea that graduates can bring a lot of advantages to a company, such as enthusiasm and a determination to succeed.

There is a solution, however. 83% of those in charge of recruitment and development now offer training for graduates so that they can offer their clients an all rounded employee. This ultimately gives graduates the opportunity to improve their communication skills and employees the ability to recruit a graduate that possesses all of the skills they require.

of those in charge of graduate “ 91% recruitment believe that employees

who do not possess people skills will be ineffective leaders.

“

This latest report by Hay Group highlights, more than ever, the need for graduate recruiters to help develop the people skills of their candidates, especially if they want them to succeed - 91% of those in charge of graduate recruitment believe that employees who do not possess people skills will be ineffective leaders.

Raffingers Stuart Join APSCo We are delighted to announce that Raffingers Stuart has recently become a member of the Association of Professional Staffing Companies (APSCo).

Ann Swain, APSCo’s Chief Executive said: “APSCo is delighted to welcome Raffingers Stuart into its membership.

All of our members have to commit to a strict Code of Conduct and a rigorous, independently verified, referencing process that means that APSCo is a trusted badge of quality for candidates and employers... Raffingers Stuart embraced this process showing their commitment to excellence.”

Raffingers Stuart has seen the recruitment sector soar within

SMALL DETAILS BIG DIFFERENCE

the last few years.

“We are very happy to be a part of APSCo and recognised as a trusted voice within the recruitment sector. Our growth in the recruitment industry has rocketed over the last few years and it is important for us to be a part of an association that not only shares our values for excellence, but also provides us with quality services and insights into the industry”, explains Lee Manning, Partner at Raffingers Stuart.

The team at Raffingers Stuart are proud to be a recognised member of APSCo and look forward to the future.

partner perspective

Why Should You Make a Will?

61% of UK adults do not have a will. There are many reasons behind this; however, according to research conducted on behalf of Standard Life, the main reason is that people “have just not gotten round to it”.

Why should you make a will?

A will is important for everyone, whatever their wealth and status. But in particular it should be a priority for those nearing, or already in, retirement, who may have accumulated substantial assets and pensions and have children and grandchildren they wish to look out for.

You should also be thinking about creating a will if you are in the process of any of the following: ● You have bought or are moving house ● You have married, divorced or are living with a partner ● You have had a change in financial circumstances ● You have had a child ● You have experienced a family bereavement Creating a will allows you to have a voice when you are no longer here, allowing you to choose exactly where your wealth and belongings are distributed.

The importance of having a will should not be under played. Without one, the distribution of your assets will be at the mercy of the intestacy rules. These rules are fixed, and not particularly contemporary, dating back to 1925 in England and Wales, and 1964 in Scotland. They can, therefore, have undesirable results in terms of who gets what, and potentially apply unnecessary inheritance tax.

You can write your will yourself. There are, however, certain criteria to be met to make a will valid and therefore it is advisable to seek legal advice in all but the most simplest of cases.

Top 10 Reasons for Writing a Will 1. To ensure your spouse /civil partner inherits your house (this applies if the house is not jointly owned) 2. To guarantee that unmarried partners and dependants will inherit 3. To guarantee children from an earlier marriage inherit (this applies if you have remarried) 4. To avoid unnecessary Inheritance Tax 5. To manage assets for those who may be considered too young to inherit, or not trusted to manage for themselves 6. To appoint guardians to look after minor children 7. To avoid money going to a bankrupt person or someone who may be in the process of a divorce 8. To create a trust for a dependant who cannot care for themselves 9. To make a donation to a favourite charity 10. To benefit individuals who are not related

Paul Dell, Partner paul.dell@raffingers-stuart.co.uk 020 8418 2688 RAFFINGERS STUART RECRUITMENT NEWSLETTER SUMMER 2015

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Head Office 19-20 Bourne Court, Southend Road, Woodford Green, Essex, IG8 8HD Tel: 020 8551 7200 Fax: 020 8551 0912 Email: info@raffingers-stuart.co.uk London Office 3rd Floor, 5-10 Bury Street, London, EC3A 5AT Tel: 020 7167 6880 www.raffingers-stuart.co.uk facebook.com/RaffStu

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