Page 10 - People Group - Joint Employment Features, Advantages & Benefits

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One of the advantages of using a PEO model with People Group is the joint-employment of workers, which offers yet more benefits for an agency with the VAT cash flow savings being the most fundamental.
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How does it work?
The joint employment element of VAT notice 700/34 states that if genuine joint employment
exists (on the employment contract, and in practice) then any disbursements billed between
those employers will not attract VAT.
Only 1% to 4% of our invoice is a non-disbursement and will attract VAT – so this means that 96% to 99% of the invoice is VAT free. Giving the agency good cash flow savings, improving liquidity, and reducing the cost of finance.
Joint Employment
People PEO
Agency
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Hirer
Worker
Version 2.0 2022