Start-up recruitment consultancies in the coming year will be subject to new laws that are to have a severe impact on cash flow, according to a new report.
Oriel Support, a business outsourcing provider, is warning budding entrepreneurs planning to start a consultancy firm to beware of the new restrictions.
The new rules will require new consultancies to file tax returns on a monthly basis instead of quarterly, with other industries left unaffected.
To the detriment of such firms, the change is intended to protect Customs and Excise from missing out when agencies go bankrupt.
Brian Pursey, managing director at Oriel Support, said: “It is yet another barrier for start-ups, but there are ways to minimise or minimise its impact.
“Anybody thinking of setting up a recruitment consultancy in the coming year should take professional advice.”
