Page 14 - People Group - Joint Employment Features, Advantages & Benefits

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PLOY
MENT Contracts
Contracts will exist between People PAYE and the agency and between both People PAYE and the agency as joint employers and the contractor. The employment contracts will confirm the joint employment status naming both parties, to satisfy VAT Notice 700/34.
eMPLOYMENT
VAT Notice 700/34: Staff. Para 3.2: Joint Employment https://www.gov.uk/guidance/companies-that-supply-staff-and-staff-bureaux-vat-notice-70034
3.2 Joint-employment
Where staff are jointly employed there is no supply for VAT purposes between the joint employers. Staff are jointly employed if their contracts of employment or letters of appointment make it clear that they have more than one employer. The contract must expressly specify who the employers are for example ‘Company A, Company B and Company C’, or ‘Company A and its subsidiaries’.
IDENCE
THE EVIDENCE
HMRC CONFIRMATION
When we were designing our PEO model it was important to us to make sure that the solution was reliable and sustainable. After studying the employment, contractual, legal and taxation precedents for joint employment we invited HM Revenue and Customs to review and comment.
HMRC understood that PEO operated correctly is not a tax product. They shared the key elements that would evidence genuine joint employment which we used to fine-tune the People PEO model. The end result is the previewed HMRC letter confirming that our contracts, practices and processes evidence genuine joint employment.
NB. Not all PEO’s are created equal. Some solutions marketed as PEO or joint- employment models are reverse engineered umbrella’s and don’t stand up to scrutiny.
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