Cash Simply CIS solutions result in two CIS5 holders in 2006

With the advent of the Construction Industry Scheme it became almost impossible for new start recruitment agencies to trade in the construction sector.

Payments ìunder deductionî, initially at 23% but soon reduced to 18%, still make it virtually impossible for many new starts - except for those with the very biggest wallets - to start or grow recruitment agencies in the construction sector.

To provide opportunity for recruitment companies wanting to operate in the construction sector, Cash Simply produced a range of CIS solutions and currently assists some 13 companies develop their construction recruitment businesses.

It is with immense pleasure that Cash Simply announces that in the first two months of 2006, two of those companies have achieved CIS5 status and can now be paid in full, even when they work with a third party funder.

Tom Atkinson, C.E.O. of Cash Simply said

ìThe Construction Industry Scheme was drafted with good intent but the cash flow consequences for small and new start recruitment agencies have been horrendous. No new or growing recruitment business can stand deductions of 18% without being cash flow crippled. 18% is more than many agenciesí gross profit so they have got to provide around seven weeks or so of pay roll before they get paid and then when they do get paid under deduction - about two months later, they still donít receive enough even to cover the temps wages! Taking on a big contract in such circumstances can result in instant failure. I know that our assistance could result in us losing those agencies obtaining CIS5 certification as they can now go into the market and get money from other sources. However, my belief in the quality of service offered is such that they will still wish to avail themselves of the excellent support service Cash Simply provides, as well as the funding of course.

I am delighted to note that the REC is in the process of setting up a construction sector section as agencies in this sector, especially new starts, require all the help and advice they can get.

I am both pleased and proud that our CIS solutions have helped two recruitment agencies to achieve CIS5 status. Let there be many more.î

If you would like information about Cash Simplyís CIS solutions, please call 08701 567 600 or go to www.cashsimply.com