Free Recruitment Consultant Invoice Template

What is a Recruitment Consultant invoice?

A recruitment consultant invoice covers fees for successfully placing candidates in permanent, contract, or temporary roles. Placement fees for permanent roles are typically a percentage of the placed candidate's first-year salary (10-25% depending on seniority and market). Contract recruitment generates a daily or hourly margin on the contractor's rate. Retained search fees for senior or specialist roles involve an upfront retainer fee plus a completion fee. Recruitment invoices require careful structuring because they are subject to rebate arrangements if a placed candidate leaves within a guarantee period. VAT applies to recruitment fees. Permanent placement fees are invoiced on the start date or after the guarantee period.

What to include on a Recruitment Consultant invoice

Client company name
Candidate name (with consent)
Role title and start date
Annual salary or contract rate
Placement fee percentage applied
Guarantee period and rebate terms
Retained search fees (if applicable)
VAT at 20%
Payment terms (typically net 14-30)
Candidate name and job title placed, plus confirmed start date (the fee trigger)
Agreed first-year salary / total compensation figure the percentage is calculated on, with the fee percentage shown
Guarantee / rebate period and terms (e.g. 90-day replacement guarantee) referenced on the invoice
For retained search: which installment (1/3, 2/3, or 3/3) and the milestone it corresponds to; for temp: pay rate, bill rate, markup %, and timesheet hours/period

Common recruitment consultant invoice line items

Service	Typical Rate	Unit
Permanent placement fee (15% of £45,000 salary)	6750	placement
Retained search fee (upfront)	3000	retainer
Contract margin (per week)	150	week
Temporary staffing (per hour, on-charge)	0	as agreed
Executive / senior contingency placement fee	25 - 30%	of first-year base salary
Temp-to-perm conversion / buyout fee (credit often given for hours already worked)	10 - 20%	of first-year salary

Setting your recruitment consultant rates

Permanent placements are almost always priced as a percentage of the hire's first-year base salary (15-25% contingency, 20% the common benchmark; 25-33% for retained search), invoiced once rather than as a flat dollar rate. Temp/contract work is billed as an ongoing markup on the worker's hourly pay rate (commonly 40-70%), and temp-to-perm conversions charge a reduced percentage because an initial placement margin was already earned.

Payment terms

Net 30 is standard for permanent placements, invoiced on the candidate's start date; terms range net-30 to net-90 depending on client. Temp/contract is billed weekly or fortnightly against approved timesheets. Retained search is billed in three installments (kickoff, shortlist, offer acceptance), each typically due net 30.

Billing pitfalls to avoid

Invoice only triggers on the candidate's actual start date, not on offer acceptance, so a candidate who accepts then reneges before day one means no invoice at all; retained search is the exception because installments 1 and 2 are billed at kickoff and shortlist regardless of outcome.
Rebate / fall-off clause: if the hire leaves within the guarantee period (90 days is the closest thing to an industry standard, sometimes 30-60 days on a sliding scale) you may owe a full refund, a prorated refund, or a free replacement, so a placement fee is not truly earned until the guarantee window closes.
Replacement-only vs money-back guarantees differ sharply: roughly 61% of recruiters offer a free replacement with NO cash refund, so the wording of your guarantee clause on the invoice/agreement determines whether cash ever leaves your account.
Temp markup billing must separate the worker pay rate from the agency margin and cover payroll taxes, workers' comp, and insurance inside that markup; under-marking a high-comp-cost category (healthcare markups can hit 100%+) quietly erases the 3-8% net margin on temp desks.
Fee basis disputes: clients try to base the percentage on base salary only while agencies include bonus, sign-on, or total comp; define the fee base explicitly on the invoice or the retained-search percentage silently shrinks.

Tax notes

Placement fees are generally subject to VAT/sales tax where applicable, at the recruiter's local rate (EU median ~21%). Cross-border B2B services within the EU are commonly zero-rated under the reverse-charge mechanism, so VAT treatment depends on both the recruiter's and the client's location.

This is general guidance, not tax advice. Tax rules vary by country, state, and situation, so confirm with a qualified accountant before relying on it.

How to invoice as a recruitment consultant

Permanent placement fees invoiced on the candidate's start date or as agreed. Retained search invoiced in thirds: on appointment, on shortlist delivery, on successful placement. Contract margins invoiced weekly with timesheet attached. Net 14 to net 30.

Frequently asked questions

How do I invoice placement fees?

Invoice the agreed percentage of first-year salary on the candidate's start date. State the rebate terms clearly on the invoice: e.g. '100% rebate within 4 weeks, 50% rebate within 8 weeks, no rebate after 12 weeks.'

What is a retained search and how is it billed?

A retained search involves an exclusive mandate and an upfront commitment. Typically billed in three equal instalments: on instruction, on shortlist delivery, and on successful placement.

Is recruitment subject to VAT?

Yes. Recruitment services are subject to 20% VAT for VAT-registered agencies.

How do I invoice contract margins?

Invoice the full daily or hourly rate charged to the client, including your margin, with the contractor's timesheet attached. Your P&L shows the margin separately; the invoice shows the total charge-out rate.

How do I handle rebate calculations on invoices?

If a rebate is triggered, issue a credit note for the rebate amount. Keep the original invoice intact and reference it on the credit note.

When do I invoice a permanent placement, on offer acceptance or start date?

For contingency placements you invoice once the candidate actually starts, not when they accept the offer, because a no-show means nothing is owed. Retained search is different: its first two installments are billed at engagement kickoff and shortlist delivery regardless of whether anyone ever starts, and only the final third ties to the placement.

Can I use this template for free?

Yes. Tidybill's free plan lets you create up to 5 invoices per month at no cost, with no credit card required. You can use the Recruitment Consultant invoice template straight away after signing up.