By Colin Howell, Chief Financial Officer, Assist Security Group
After twenty years in corporate finance and six years working in security, I’ve seen too many procurement decisions that looked good on paper but created serious problems down the line. If you’re buying security services and basing decisions mainly on price, you’re probably taking on risks you haven’t even considered.
Let me walk you through what’s really behind those surprisingly low bids.
The £15 Million Employment Divide
UK employment law splits the security industry in half. Companies with turnover under £15 million can hire contractors through their own limited companies, paying them gross without any employer responsibilities. Cross that threshold and you must use PAYE – full National Insurance, pension contributions, holiday pay, the lot.
Here’s what matters for buyers: When one quote is 10% – 15% cheaper than another, it’s usually not because they’re more efficient. They’re playing by different rules, and those differences affect the service you’ll actually receive.
What “Self-Employed” Security Really Means
Think about what type of person chooses to work security as a genuinely self-employed contractor:
- No guaranteed income or hours
- No holiday pay, sick pay, or job security
- No training investment from the company
- No reason to stick around when something better comes up
The result? Constant staff changes, minimal training, officers who don’t know your site, and when things go wrong, very limited options for getting problems fixed.
Why Proper Security Costs More (And Why It’s Worth It)
Real security isn’t just about putting bodies in uniforms. It’s about understanding threats, preventing incidents, and knowing how to handle problems when they arise.
When a luxury store loses a £1,000 handbag, they need to sell several more just to break even. Prevention saves multiples of what reaction costs. But prevention requires investment – in training, in intelligence, in understanding your specific risks.
The cheap alternative is generic coverage with no threat awareness and officers who couldn’t prevent problems even if they spotted them.
The April 2026 Problem Nobody’s Talking About
New rules will make client companies liable for unpaid taxes when umbrella companies don’t pay. Most people in procurement haven’t heard about this yet, but it’s a real risk heading your way.
Questions you should be asking now:
- Does your security provider use umbrella companies?
- What happens if one of them fails?
- Who’s actually responsible for the tax bill?
- What checks are they doing on these companies?
Warning Signs in Security Tenders
Prices that don’t make sense: If one bid is drastically lower, they’re cutting corners somewhere important.
They can’t explain their employment model: Professional companies should clearly explain how they employ staff and remain compliant.
Constantly changing faces: If you never see the same officer twice, the provider isn’t investing in their people.
Vague about training: Ask for specifics, not just certificates.
Unclear insurance details: Proper cover costs money. Cheap cover leaves you exposed.
What You Actually Get for Your Money
With professional providers:
- Properly employed staff who understand your business
- Officers trained for your specific risks and requirements
- Intelligence about threats relevant to your sector
- Full compliance with proper audit trails
- Someone who’ll actually take responsibility when things go wrong
With cheap providers:
- Whoever happens to be available that day
- Basic training at best
- No understanding of your specific vulnerabilities
- Questionable compliance and liability
- Good luck getting problems resolved
The Real Cost Comparison
Don’t just compare hourly rates. Compare what you’re actually buying:
- Incident prevention vs cleaning up after problems
- Professional handling vs amateur responses to serious situations
- Compliance certainty vs potential liability exposure
- Management time spent dealing with security issues
- Reputation protection vs damage control after failures
How to Spot the Professionals
Ask direct questions:
- “Explain exactly how you employ your staff and ensure compliance”
- “What specific training do officers get beyond basic requirements?”
- “How do you assess threats relevant to our business?”
- “Break down your pricing including all employment costs”
- “What happens if there’s a serious incident on our site?”
Check the basics:
- Recent ACS audit with no major issues
- Relevant experience they can actually prove
- References willing to discuss real performance
- Evidence of ongoing training, not just initial certification
- Proper insurance that actually covers what you need
Getting This Right
The security industry’s weird regulations let some companies undercut others through shortcuts, not efficiency. Your job is to see past the price game and focus on what you’re actually getting.
The cheapest security quote usually becomes the most expensive mistake. Professional providers cost more upfront because they deliver more – proper employment, real training, threat intelligence, compliance certainty, and actual risk reduction.
When security failures can cost careers and reputations, the question isn’t whether you can afford quality security. It’s whether you can afford to get this wrong.
Colin Howell is Chief Financial Officer at Assist Security Group, with over 20 years of finance and M&A experience. ASG provides intelligence-led security with full compliance and clear employment practices. For straightforward security procurement advice, contact sales@assistsecurity.co.uk
