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Joint Employment Contracts - Evolve Contract Services

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Date5/15/2021 3:01:10 PM
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Joint Employment has become a very popular employment model for Umbrella Companies and Contractors, the arrangement between a minimum of two entities within a contractor supply chain. The most commonplace entities in this chain are the recruitment agency and payroll intermediary, although this is not exclusive.

Where there is a genuine joint employment arrangement in place, there is no VAT chargeable on the cost of employment. HMRC confirms this within ‘Supply of Staff and Staff Bureaux (VAT Notice 700/34)’.

Generally, it tends to be an attractive model to recruitment agencies versus an umbrella solution. The Joint Employment arrangement is particularly beneficial for healthcare and medical, charities, banking, and financial sectors.
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