AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A UK recruitment business must follow the rules GOV.UK sets out for employment agencies and employment businesses: you cannot charge work-seekers a fee for finding them work, and you must give them a key information document and written terms before you start looking for work for them. If you supply temporary workers, you must pay them for all the hours they work, even when the client has not yet paid you.
Agency or employment business: which are you?
GOV.UK uses two terms, and the difference decides who pays the worker. An employment agency introduces a candidate to a hirer, who then employs them directly; the agency earns a placement fee and is not responsible for paying the worker after the introduction. An employment business supplies temporary workers who work under the hirer's direction but are paid by the employment business. Many new firms do both: permanent placements for some clients, temps or contractors for others.
The distinction matters most for cash. A permanent desk has no payroll; a temp desk carries the weekly wage bill of every worker you place. Many Nigerian founders start in health and social care staffing, where the extra regulator questions are covered in our piece on whether a nursing agency needs CQC registration.
What you must not do
GOV.UK lists the things agencies and employment businesses cannot do. As at October 2026 (page updated 16 October 2026), you cannot:
- charge a work-seeker a fee for work-finding services (your fee comes from the hirer);
- stop a worker from working elsewhere or from ending their contract with you;
- require a worker to tell you the name of any future employer;
- withhold payments or wages that are due;
- supply a temporary worker to replace someone taking part in industrial action;
- charge for a uniform without telling the worker in advance;
- make unlawful deductions from pay.
The fee ban is the one that catches people coming from markets where candidates sometimes pay to be "registered" or "processed". In the UK the work-seeker pays nothing for being found work. If you also sell something else to candidates, such as CV writing or training, GOV.UK has a separate section on providing non work-finding services, and the two must be kept apart.
What you must do before and after placing someone
The same guidance sets out positive duties. You must make sure workers are:
- given a key information document and written terms of engagement before you start looking for work for them;
- given a written statement when they start work, including limited company contractors;
- paid for all the work they do and given paid holiday;
- paid at least the National Minimum Wage;
- not required to work more than 48 hours a week;
- protected under health and safety law.
GOV.UK also has separate parts of the guide on what to check before placing a worker with a hirer, on working with vulnerable people, on job adverts, and on the transfer fees you can charge a hirer who takes on your temp permanently. Read each part that applies to your desk; the rules on transfer fees in particular need to be written into your client terms before the first placement, not argued about afterwards.
Who is outside these rules
GOV.UK says university appointment services and certain educational institutions, local councils, trade unions, employers' organisations and certain professional bodies, charities, and some services for ex-forces members or former prisoners are not covered. Entertainment and modelling agencies follow different rules on a separate page. A normal commercial recruitment company is covered.
The cash-flow rule that sinks new temp desks
GOV.UK is plain on this: an employment business must pay a temporary work-seeker for all the hours they work, even if the hirer has not paid you or the timesheet has not been authorised. Your client's payment terms do not change your duty to the worker. That means you fund payroll out of your own money until invoices are paid.
| Example item | Figure |
|---|---|
| Temps placed | 10 |
| Hours each per week | 37.5 |
| Pay rate per hour (example only) | £13.00 |
| Weekly gross pay | £4,875 |
| Client pays 30 days after invoice | about 4 to 5 weekly payrolls outstanding |
| Cash needed before the first client payment | £19,500 to £24,375, before employer costs |
The example leaves out employer National Insurance, pension contributions and holiday pay, all of which add to the bill. Before you sign a large temp contract, work out how many weeks of payroll you can carry. Our guide to setting up PAYE for your first employee covers the payroll registration side.
Founder checks for Nigerians in the UK
- Your visa. If you are on a work visa sponsored by another employer, running your own agency may not be allowed. Read whether you can run your own UK company on a Skilled Worker visa before you trade.
- Your structure. Most agencies trade through a limited company so that client contracts, payroll and liability sit with the company.
- Licences for your sector. GOV.UK's licences page (updated 3 September 2026) says agencies supplying workers for agriculture, horticulture, shellfish gathering, or food processing and packaging must be licensed by the Fair Work Agency as gangmasters. Nursing and domiciliary care agencies may need to register with the Care Quality Commission in England, Care Inspectorate Wales, the RQIA in Northern Ireland, or the care regulator in Scotland.
- Candidates from Nigeria. Placing someone who is still in Nigeria raises right-to-work and sponsorship questions for the hirer; an agency cannot fix those by charging the candidate, which is banned.
Where Pryme fits
A Pryme Business Account can be opened from any country and holds pounds, naira, dollars and euros, each with local account details. A recruitment firm with a back office or a sourcing team in Lagos can receive client payments in pounds and pay Nigerian staff in naira, converting with Swap when it chooses; the app shows the rate and the fee before you approve. The payroll and invoicing tools prepare runs and invoices for a person to approve, and the Finance agent can keep an eye on unpaid invoices while you fund temp wages.
What to check first
- Decide whether you are an agency, an employment business, or both.
- Draft the key information document and work-seeker terms before you advertise.
- Write client terms covering fees, payment days and transfer fees.
- Model how many weeks of temp payroll you can fund before clients pay.
- Confirm your own visa allows you to run the business.
Questions people ask
Can a UK recruitment agency charge candidates a fee?
No. GOV.UK says agencies and employment businesses cannot charge a work-seeker a fee for work-finding services. Your fees come from the hirer.
Do I need a licence to open a recruitment agency in the UK?
Not for most sectors, but GOV.UK says agencies supplying workers for agriculture, horticulture, shellfish gathering, or food processing and packaging must be licensed by the Fair Work Agency, and nursing or domiciliary care agencies may need to register with a care regulator such as the CQC.
Do I have to pay temps if the client has not paid me?
Yes. GOV.UK says an employment business must pay a temporary work-seeker for all hours worked, even if the hirer has not paid or the timesheet is not authorised.
What paperwork must candidates get before I look for work for them?
A key information document and written terms of engagement, before you start looking for work for them, and a written statement when they start.
Sources
- GOV.UK: Employment agencies and businesses (updated 16 Oct 2026) · accessed Oct 2026
- GOV.UK: Employment agencies and businesses, licences for employment agencies (updated 3 Sep 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.