What software does a new temp agency need?

The stack at a glance

Payroll

GOV.UK says you must use payroll software that reports PAYE information online, unless you are exempt, and HMRC keeps a list of recognised products. HMRC's own Basic PAYE Tools is free, but only for businesses with fewer than 10 employees. Temps on your payroll count, so once ten or more people are on it you need other recognised software or a payroll bureau.

If you ever pay workers without operating PAYE, for example through their own limited company, HMRC expects an employment intermediary report every 3 months. Holiday pay for irregular hours is covered in our 12.07% holiday pay guide.

Accounts and invoicing

A temp agency invoices often, usually weekly, from approved hours. Pick accounting software that handles recurring invoices, credit control and VAT. You must register for VAT once taxable turnover passes £90,000 in a rolling 12 months; because you invoice the full charge rate, wages included, that can come early. Ask your accountant which package they support, since they will be in it every month.

Timesheets, job boards and signing

• Timesheets. Paper signed by the client works at the start. Software or an app helps once you have several sites. Whatever you use, payroll and invoicing both run from it, so it needs one clear approval step.
• Job advertising. Job boards, your own website and, in England, Scotland and Wales, the government's Find a job service. Start with the one your temps actually use.
• E-signature. You must agree terms with each temp before providing services and give a Key Information Document before agreeing terms, so a simple e-signature tool saves printing and chasing.

Getting them to work together

Small agencies rarely need everything connected on day one. A weekly routine works: approved hours go to payroll and to invoicing, and the CRM holds who was booked where. Choose tools that import and export CSV so data can move when you need it.

Tempbench, the CRM for UK temp agencies, has no integrations. It exports everything as CSV and imports candidate spreadsheets. At £12.99 a seat a month plus VAT it covers the CRM part: candidates, availability, the ring round, sentence search, clients, jobs with margins, the week planner and document expiry.

What to buy first

1. Accounts and a business bank account, before the first invoice.
2. Payroll, before the first payday, once you are registered as an employer.
3. A CRM, once the bench outgrows a sheet you can hold in your head.
4. Timesheets and texting, when the number of sites makes paper and calls slow.