Rebate calculator

Upfront rebates are typically paid to individual rather than the business.

If rebates are not paid through the company this removes the company revenue and increase valuation.

Rebates through the business can be split between consultant commission and company income to promote compliant commercials.

Incentives paid direct to individuals create Criminal Finance Act, Bribery and Money Laundering risks for the recruitment agency.

Assumptions

Timesheet rebate monthly figure based on 4.33 weeks per month. 

Basic rate Tax and National Insurance set at 25% for illustrative purposes                                             

Higher rate tax applicable for those who earn over the qualifying threshold                    

The average EBITDA multiple for a recruitment agency is around 4 times for permanent recruitment businesses and 8 times for contract businesses                                          

EBITDA set at 6 based on the average multiplier