Professional Employment Organisation
You Find The Talent, We Employ Them
What Is PEO?
A professional employment organisation or PEO is a business that acts as an Employer of Record and can offer additional benefits and services that businesses of all sizes can utilise and can provide all of the benefits to employees that a regular internal HR department does, but the workers are not directly hired by the firm they work for.
A professional employment organisation or PEO is a business that provides employment and benefit’s to a worker on a clients’ behalf and are responsible for making all statutory deductions under the Income Tax (Pay As You Earn) Regulations 2003 and for settling all outstanding liabilities with HMRC as the “employer of record”. The PEO charges the client for the service and not the worker.
An Alternative To Umbrella Employment
Flexible workforce models are ever more popular, with many end clients trying to minimise their employment costs by engaging contingent workforces.When IR35 reforms arrived in the Public Sector in 2017 and in the Private Sector in 2021, the complex payroll calculations necessary for any contractor found to be “inside IR35”, saw a boom in umbrella payroll services and they have largely taken over the pay-rolling of those contractors which were operating as a PSC on short-term contracts and were therefore less likely to be hired under direct employment by the end client.
Professional Employment Organisations (PEO’s) have also seen an uptick in enquiries, leading some umbrella companies to offer a dual employment model (between the umbrella and the agency)which has helped those businesses to circumvent the charging of VAT between the two parties.
Pendragon Employ PEO is a single employer service and therefore VAT is payable on all invoices.
How does it Work?
Pendragon directly employs the contractors or temporary workers under PAYE
Absolutely no margin or fees to the worker
Statutory responsibilities undertaken as the Professional Employment Organisation
Responsible for all statutory obligations
Provide dedicated support and advice to the end client, agency and worker
HR and payroll services
Reduced administration and simplification of processes
Full compliance, transparency and accuracy
What do you need to do?
Your company enters into a B2B contract with Pendragon Employ PEO t/a Pendragon Consultancy to provide the services
Pendragon Employ PEO will invoice you for the salary plus employment costs and benefits where applicable
Pendragon calculate the salary, making statutory deductions for the employee and billing you for all associated employment costs
Peace of mind that your business can focus on what it does best
*It should be noted that there are minimum wage, holiday requirements and mandatory rules for pension in the UK. Even with increased compliance and rule changes to the UK employment rules; with our help it is simple and cost effective to engage, employ and retain a contingent workforce, compared to most other EU countries.*
Employing a UK workforce without a UK establishment
If you are expanding into the UK as an international business you will be aware that the UK has distinct employment regulations and statutes. If you want to engage employees in the UK but do not have an office presence, ensuring that your employees are correctly engaged and are paid the correct amount of salary on time, is critical. Pendragon Employ PEO understands the processes and can help you to navigate all the rules, and as a result; we can help you stay compliant with the employment and tax laws.
An ideal solution for International companies with no UK establishment. We are currently partnering with companies from the EU, USA and Asia, providing support where they most need it, alleviating the need for local HR teams or payroll staff in the UK for the sole purpose of engaging a contract workforce.
With continued changes to Off-payroll regulations ( IR35) impacting contractors working through their own Limited Companies and the Onshore and Offshore Intermediaries legislation, we continue to receive multiple requests from International Companies looking for expertise and advice on engaging a contingent workforce in the UK. Pendragon Employ PEO makes the option, efficient, affordable, reliable and compliant act as we act your employment partner and Employer of Record with UK authorities taking care of all the important matters on your behalf.
Global Employer of Record Services in 150 countries. For more information click here
Working with Pendragon Employ PEO can drastically reduce costs and improve operational efficiencies
We work effortlessly with Businesses and Agencies as a trusted and preferred partner, helping them, to handle the complexities of contractor engagements in an efficient, compliant and transparent way. We understand that this is a vital service and our job is to make the process as seamless as possible, whilst ensuring that it is Simpler, Fairer and Safer when using Pendragon Employ PEO.