How much does a recruitment agency charge in the UK?
By Ali Grant, founder of LemonadeUpdated
How much does a recruitment agency charge in the UK?
As of October 2026, UK recruitment agencies commonly charge a contingency fee of 10% to 30% of first-year salary, plus VAT, paid only if their candidate starts (808 Group and Venn Group terms; Seedcamp; Nigel Wright). Retained search costs 25% to 35%, usually paid in thirds (Seedcamp; Reed). On a £45,000 hire, 20% is £9,000 plus VAT.
Some agencies charge on the whole package, not just basic salary, and a retained search usually takes its first third before you see a candidate. Hiring one experienced person? Lem, Lemonade's AI recruiter (makelemonade.io), sources, screens and introduces interested candidates for a fixed Search Fee per role, with no hire fee and no percentage of salary. See Lemonade vs a recruitment agency.
Fee models compared
| Model | How you pay | Typical fee | Who it suits |
|---|---|---|---|
| Contingency ("no placement, no fee") | Only when the agency's candidate starts. Several agencies may work the role at once. | 10% to 30% of first-year salary (808 Group and Venn Group published terms); 15% to 25% most often quoted (Get Staffed; All Access London); up to 30% in wider ranges (Nigel Wright; Seedcamp; Agency Central) | Mid-level roles; employers who want no upfront cost |
| Exclusive contingency | Still only on a start, but one agency gets the role for a set window | 5 points lower at the two agencies here that publish both rates (15% vs 20%: Aaron Wallis; Ashdown) | Employers happy to give one agency a head start |
| Retained or executive search | In stages, usually thirds: on instruction, on shortlist, on start. The first third is normally non-refundable. | 25% to 35% (Seedcamp; Reed) | Senior, confidential or hard-to-fill hires |
| Fixed-fee recruitment | A flat price for advertising and filtering applicants; salary does not change it | From £249 (Get Staffed, a fixed-fee seller) for advertising products | Roles that attract plenty of active applicants, when you have time to screen |
| RPO or embedded recruiter | A monthly retainer for a recruiter working inside your team | Seedcamp suggests a 20% to 50% premium over employing the recruiter yourself | Funded companies hiring 10 or more roles quickly |
In general, candidates do not pay: UK law bars agencies from charging work-seekers for most work-finding services (GOV.UK).
Published rates from UK agencies
| Agency | Fee (published terms, checked 21 October 2026) | Rebate or guarantee | Payment terms | Source |
|---|---|---|---|---|
| Reed | Standard 22%, Advanced 25%, Premium 27% of total first-year remuneration; Lite 17% for some roles under £30,000, plus a £500 deposit | Standard: 100% to week 2, 50% to week 8 | 14 days | Reed terms |
| Aaron Wallis (sales) | 15% of basic as sole agency; 20% with other agencies | Free replacement in weeks 1 to 4, then 40% (months 2 to 6) and 20% (months 7 to 12), if paid within 30 days | 30 days | Aaron Wallis FAQ |
| Ashdown Group | 15% of basic for a 10-working-day head start; 20% otherwise | Free replacement within 13 weeks; full refund if that fails | Invoiced on day one | Ashdown fees |
| McCord Recruitment Services | 15% of base salary | 50% or free replacement to week 4, 30% or replacement to week 8, 10% to week 12 | 14 days from the start-date invoice | McCord fees |
| Astbury McKinley | 20% under £50,000; 25% from £50,000 | 50% in weeks 1 to 2, 20% in weeks 3 to 4, then "reasonable endeavours" to find a free replacement to week 8 | 14 days | Astbury McKinley terms |
| Venn Group | 30% of total remuneration | 100% in weeks 1 to 2, 75% to week 6, 50% to week 10 | 7 days | Venn terms |
| 808 Group | 10% of basic, minimum £2,495 | 75% or replacement to week 4, then 50% and 25% to week 12 | 7 days | 808 Group terms |
All plus VAT. Full source titles are listed at the end of this guide.
When you pay
On contingency, the invoice usually goes out on the hire's first day, with 7, 14 or 30 days to pay: long before probation ends. On a retained search you pay in instalments, and some firms charge the final third on offer acceptance rather than the start date (Astbury McKinley). Cancelling a retained search can cost a further third (Astbury McKinley).
Withdrawing an offer after the candidate accepts can also cost you: Reed charges 50% of the fee, and Astbury McKinley may invoice the fee in full.
Refunds and rebates if the hire leaves
Agencies have no obligation to offer a rebate (Agency Central), but a sliding scale is common: a full or partial refund in the first few weeks, tapering to nothing by week 8 to 12, or a free replacement instead of cash. A few run longer schemes, such as Aaron Wallis's 12 months.
Read the conditions, because they decide whether you get anything:
- Pay on time. Aaron Wallis, McCord, Venn and 808 Group tie the rebate or guarantee to paying the invoice on time.
- Tell them fast. Venn wants written notice within 3 working days; 808 Group within 7 days.
- Redundancy is excluded by Reed, Venn, McCord, Astbury McKinley and 808 Group.
Introduction clauses: the 12-month catch
Many terms say you owe the fee if you hire anyone the agency introduced within a set period, commonly 12 months, even if you found them again yourself. In one case written up by Menzies Law, an agency demanded £15,000 (20% of a £75,000 salary) under a 12-month clause after the client gave an introduced candidate one week of freelance work. It was negotiated down to £360. McCord's terms also note that a fee may apply to people already on your own database if the agency shortlists them, you had not already approached them about that role, and you hire them. If you already know a candidate, say so in writing before the agency sends them.
Do recruitment agency fees include VAT?
No. Agencies quote fees plus VAT, and the standard rate is 20% (GOV.UK), so a £9,000 fee is a £10,800 invoice. Whether you can reclaim the VAT depends on your own VAT position; ask your accountant.
Worked examples
| Salary | Fee at 15% | Fee at 20% | Fee at 25% | 20% fee plus VAT |
|---|---|---|---|---|
| £30,000 | £4,500 | £6,000 | £7,500 | £7,200 |
| £45,000 | £6,750 | £9,000 | £11,250 | £10,800 |
| £60,000 | £9,000 | £12,000 | £15,000 | £14,400 |
| £75,000 | £11,250 | £15,000 | £18,750 | £18,000 |
| £100,000 | £15,000 | £20,000 | £25,000 | £24,000 |
Two cases the table hides:
Total remuneration. A £50,000 basic with a £5,000 guaranteed bonus, at 22% on total remuneration, is £12,100 (£14,520 with VAT). On basic alone it would be £11,000.
Retained. A retained search for a £120,000 role at 30% is £36,000, typically £12,000 on instruction, £12,000 at shortlist and £12,000 on start. The first £12,000 is spent whether or not you hire.
Can you negotiate the fee?
Usually, yes. The clearest lever is exclusivity: at the two agencies here that publish both rates, it is 5 points lower. Aaron Wallis and Ashdown both publish 15% for an exclusive or head-start window against 20% when other agencies are involved. It is also worth asking for a multi-role rate, a fee on basic salary only, a longer rebate window and a shorter introduction period. Ask before the first CV arrives.
Fixed-fee recruitment
Fixed-fee products charge one price whatever the salary. Most are advertising plus filtering: your role goes on job boards, someone screens applicants, and you do the rest. Get Staffed, which sells one, prices from £249 and says plainly that the gap with an agency is "a different amount of screening work landing on you". They suit roles that attract plenty of good applicants, since they rely on people who see the advert.
Cheaper options for one hire
- Job boards. Cheapest for junior, hourly and high-volume roles, where good applicants come to you. The screening is left to you. See Lemonade vs job boards.
- An in-house recruiter. Worth it once you hire several roles a year. See Lemonade vs an in-house recruiter.
- An AI recruiter. Software that sources, screens and approaches candidates. Some charge a percentage when you hire (Jack & Jill charges 10% of first-year salary), others a monthly subscription (Juicebox) or a fixed fee per role.
Where Lemonade fits: one experienced hire, one fixed fee
We make Lemonade, so read this section with that in mind. For a founder or head of operations hiring someone with more than five years' experience, Lem, Lemonade's AI recruiter, sources, screens and introduces interested candidates for UK roles, so the person running hiring only does the interviews. Lem hunts. You interview.
- Three sources, one brief. Lem draws on Lemonade's talent pool, people Lem sources directly and applicants to your job posts, including adverts you run yourself on Indeed or LinkedIn. Every applicant is screened against your brief alongside the people Lem sources.
- Scored, with the reasoning shown. Each candidate is scored against your brief, requirement by requirement, with gaps shown as plainly as strengths. Lemonade's matching is built on more than a million job matches and user feedback, and gets sharper as feedback comes in.
- Only interested people reach the shortlist. Lem approaches candidates by email and LinkedIn, and only those who confirmed their interest are introduced. Request an intro and we can connect you in minutes.
- None of the clauses above. A fixed Search Fee per role, not a percentage of salary. No hire fee and no introduction window, so the 12-month catch does not apply. Not exclusive, so it can run alongside an agency. And Lem never approaches anyone about a role at a company they have worked for.
An agency is the better choice if an upfront fee is not acceptable, if you want someone to run the offer (Lemonade hands off at the in-person interview stage), or for temp, junior or high-volume roles. Lem works best for hires with more than five years' experience, and takes contract and fixed-term roles as well as permanent ones. See Lemonade vs a recruitment agency.
Example: a £45,000 role advertised up to £50,000 is in the £450 band. A 20% agency fee on the same hire is £9,000 plus VAT. Lemonade is not VAT-registered, so no VAT is added to its fees.
Lemonade pricing
Prices correct as of 21 October 2026. Full pricing
- First search free: 30 days, any salary, no card needed, one per company.
- Pay as you go: a Search Fee per role for 30 days of searching: £450 (salary up to £50k), £650 (£50k to £100k) or £1,200 (above £100k). Another 30 days for £250 if needed.
- No hire fee, on any plan.
- Refund: We will refund your Search Fee if you don't interview any of our candidates. Applies to roles paid for one at a time. Claim it from your portal within 14 days of the search ending. Refunded to your original card within five working days.
- Optional LinkedIn promotion, charged at cost plus 5%. Unspent budget is refunded; the 5% handling fee is not.
Lemonade does not currently charge VAT (not VAT-registered). Employer Terms of Business
FAQ
What percentage do recruitment agencies charge in the UK?
As of October 2026, contingency fees commonly run from 10% to 30% of first-year salary, plus VAT. Published UK terms run from 10% (808 Group, with a £2,495 minimum) to 30% (Venn Group, on total remuneration), and the range most often quoted is 15% to 25%. Retained and executive search usually costs 25% to 35%. At the two agencies here that publish both rates (Aaron Wallis and Ashdown), an exclusive arrangement is 5 points lower (15% vs 20%).
Is the fee on basic salary or the whole package?
It depends on the agency, so two agencies quoting 20% can send very different invoices. As of October 2026, Aaron Wallis, Ashdown and McCord charge on basic salary only. Others charge on total first-year remuneration: Reed's standard terms include commission, bonuses and benefits and value a company car at no less than £5,000, and Venn values a car at no less than £7,500. Make sure the terms say which figure applies.
When do I pay a recruitment agency?
As of October 2026, contingency agencies usually invoice on the hire's start date, with 7 to 30 days to pay: 7 days at Venn and 808 Group, 14 at Reed and McCord, 30 at Aaron Wallis. Retained search is usually paid in thirds: on instruction, on shortlist, and on start or offer acceptance. Withdrawing an accepted offer can also cost a fee.
Do I get a refund if the hire leaves?
Only if the terms offer one. A sliding rebate or free replacement ending between week 8 and week 12 is common. Rebates usually depend on paying on time and telling the agency within days, and redundancy is often excluded.
Do recruitment agency fees include VAT?
No. Agency fees are quoted plus VAT at 20%, so a £9,000 fee becomes a £10,800 invoice.
What is the difference between contingency and retained recruitment?
Contingency agencies are paid only when their candidate starts, often competing with other agencies on the role. Retained firms work exclusively for a higher fee, commonly 25% to 35%, paid in thirds (instruction, shortlist, start), so part of it is spent even if nobody is hired.
Do I have to pay if I hire someone the agency introduced later?
Usually, yes, within the introduction period in the terms, commonly 12 months, sometimes even for short freelance work. Read that clause before accepting any CVs.
What is a cheaper alternative to a recruitment agency for one hire?
For junior or high-volume roles, a job board. For one experienced hire, an AI recruiter such as Lemonade charges a fixed Search Fee per role, from £450 (prices correct as of 21 October 2026), with no hire fee, and your first search is free. See Lemonade vs a recruitment agency.
Hiring one experienced person?
Lem sources, screens and introduces interested candidates for a fixed Search Fee, with no hire fee and no percentage of salary. The first search is free: 30 days, any salary, no card needed. Weighing the full cost against an agency first? See Lemonade vs a recruitment agency.
Sources and notes
- Agency Central, “How do recruitment agencies get paid and how much?” (15% to 20% standard, up to 30%; no obligation to offer a rebate): https://www.agencycentral.co.uk/articles/how-do-recruitment-agencies-get-paid-and-how-much/, checked 21 October 2026
- Seedcamp, “Shifting gears from founder-led hiring” (contingency 15% to 30%, executive search 25% to 35%, RPO premium): https://seedcamp.com/views/shifting-gears-from-founder-led-hiring/, checked 21 October 2026
- Jack & Jill, “Pricing” (10% of first-year salary on hire): https://www.jackandjill.ai/pricing, checked 21 October 2026
- Juicebox, “Pricing” (monthly per-seat plans): https://juicebox.ai/pricing, checked 21 October 2026
- Nigel Wright, “Fees and pricing FAQs” (15% to 30% of base): https://www.nigelwright.com/uk/fees-pricing-faqs, checked 21 October 2026
- All Access London, “Inside the wild west of recruitment: Inadequate vetting, AI and the 'race to place'” (22 August 2026; "15-25 per cent" of first-year salary, along with VAT): https://allaccesslondon.com/2026/08/22/inside-the-wild-west-of-recruitment-inadequate-vetting-ai-and-the-race-to-place/, checked 21 October 2026
- Get Staffed, “How much do recruitment agencies charge?” (contingency 15% to 25%; flat fee from £249; vendor of a fixed-fee product): https://get-staffed.com/how-much-do-recruitment-agencies-charge/, checked 21 October 2026
- Reed, “Employment Agency Terms of Business” (effective 1 April 2025): https://resources.reed.com/hubfs/Website/Documents/Terms%20of%20Business/Employment%20Agency%20Terms%20of%20Business%20-%20REED.pdf, checked 21 October 2026
- Reed, “Executive Search Terms of Business” (retained in thirds): https://resources.reed.com/hubfs/Website/Documents/Terms%20of%20Business/Executive%20Search%20Terms%20of%20Business%20-%20Reed.pdf, checked 21 October 2026
- Aaron Wallis, “Employer FAQ”: https://www.aaronwallis.co.uk/employers/why-use-aaron-wallis/faq/, checked 21 October 2026
- Ashdown Group, “Fees and rebate”: https://www.ashdowngroup.com/fees-and-rebate, checked 21 October 2026
- McCord Recruitment Services, “Service fees”: https://www.mccordrecruitmentservices.com/our-services/service-fees/, checked 21 October 2026
- Astbury McKinley, “Fees and terms” (retained in thirds, final third on offer acceptance; cancellation fee): https://www.astburymckinley.co.uk/our-fees-terms, checked 21 October 2026
- Venn Group, “Terms and conditions”: https://www.venngroup.com/legal_documents/terms_and_conditions, checked 21 October 2026
- 808 Group, “Recruitment terms”: https://www.808group.co.uk/recruitment-terms/, checked 21 October 2026
- Menzies Law, “An unconscionable fee: a case study”: https://www.menzieslaw.co.uk/an-unconscionable-fee-a-case-study/, checked 21 October 2026
- GOV.UK, “VAT rates”: https://www.gov.uk/vat-rates, checked 21 October 2026
- GOV.UK, “Employment agencies and businesses”: https://www.gov.uk/employment-agencies-and-businesses, checked 21 October 2026
- Lemonade, “Pricing” (first search, plans and refund): https://makelemonade.io/employers#pricing
- Lemonade, “Employer Terms of Business” (no hire fee 4.4, VAT 4.7, refund 5, not exclusive 6.1): https://makelemonade.io/employer-terms
- Lemonade, “How Lem works”: https://makelemonade.io/employers
Lemonade prices correct as of 21 October 2026.
All checked 21 October 2026. Agency rates are each agency's own published terms. We make Lemonade. We have tried to report these terms accurately; if anything here is out of date, email contact@makelemonade.io.
We make Lemonade. We have tried to compare like for like; if anything here is out of date, email contact@makelemonade.io.