Cost and fees
Is there VAT on recruitment agency fees?
Yes. Recruitment services are standard-rated, so a UK VAT-registered agency adds 20% to the fee. A £3,000 flat fee is £3,600 including VAT; a £9,000 agency fee is £10,800. If your business is VAT-registered you reclaim it, so the comparison between providers should be made on the ex-VAT figure. The thing to watch is that not every provider states which they are quoting — several UK flat-fee pages publish a number with no VAT statement at all.
What it works out at
| Fee | VAT at 20% | Total |
|---|---|---|
| £399 | £79.80 | £478.80 |
| £1,500 | £300 | £1,800 |
| £3,000 | £600 | £3,600 |
| £9,000 (a 20% agency fee on £45,000) | £1,800 | £10,800 |
If your business is VAT-registered you recover it, so VAT is a cashflow question rather than a cost one. If you are not registered — some charities and small partnerships — it is a real 20% and belongs in the comparison.
The trap when comparing providers
Not everybody says. Checking the UK flat-fee market on 6 September 2026, only some providers state VAT explicitly on their pricing pages; others publish a bare number. A £999 that turns out to be ex-VAT is £1,198.80, which changes a close comparison.
Ask the question directly before comparing headline figures. Our full comparison of published prices flags who states it and who does not.
How ours is shown
Every TalentFinder price is quoted +VAT and every payment we take shows the amount and the VAT separately — subtotal, VAT at 20%, total — rather than a single VAT-inclusive figure. That is deliberate: a VAT-inclusive lump makes it harder for your finance team to reconcile and harder for you to compare us with anyone else.
Sources
Want the fixed price for your role?
Advertise it yourself from £399 +VAT, or hand the whole search to a dedicated recruiter — a flat fee by salary band with a 100% refund if the role is not filled.
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Or call 0161 327 2895.