Stop notice 12

Arrangement details

Scheme users sign a Contract for Employment and a Master Advance Agreement withPSL. The Contract for Employment says the scheme user will be paid the National Living wage (NLW) for their services which are provided to 3rd party end clients. The Master Advance Agreement provides thatPSLwill make advances to the scheme user in its capacity as sole trustee of a settlement known as the ‘PAYEServices Settlement’.; Scheme users provide their services to the end client who makes payment for the work done.PSLthen pay the scheme user a single payment which is comprised of 2 elements, the first is a salary at theNLWrate for the hours worked and the second is the advance. Both elements are shown as ‘income’ on the payslip provided byPSLto the user. However, only the salary element is paid after deductions of Income Tax and National insurance contributions (NICs), whereas the advance element is paid without deductions of Income Tax andNICs.