People Group Services Limited Company Number: 11570329

Assignment Rate Integrity Policy

Purpose

The purpose of this Assignment Rate Integrity Policy is to ensure that all contractor pay rates, charge rates, and associated employment costs are:

• Accurately calculated
• Clearly documented
• Consistently applied
• Fully transparent across the supply chain

This policy underpins People Group Services Ltd’s commitment to “Compliance Without Compromise”, ensuring that all assignment rates are aligned with:

• UK tax legislation (including PAYE and National Insurance requirements)
• HMRC expectations and reporting standards
• Agency Workers Regulations (AWR), where applicable
• Joint and Several Liability (JSL) risk mitigation requirements (effective April 2026)

Scope

This policy applies to:

• All contractors engaged via People Group Services Ltd
• All recruitment agencies, MSPs, and end clients within the supply chain
• All payroll models, including:
  • Umbrella employment
  • Joint employment (PEO model)
  • In-house PAYE
  • Any outsourced payroll providers engaged via the PGS ecosystem

Definition of Assignment Rate

An Assignment Rate is defined as the total agreed rate received from the agency or end client, which includes:

• Gross taxable pay
• Employer’s National Insurance Contributions
• Apprenticeship Levy (where applicable)
• Holiday pay (accrued or advanced)
• Pension contributions (where applicable)
• Statutory costs
• Margin (where applicable)

The Assignment Rate is not equivalent to take-home pay and must never be presented as such.

Policy Principles

People Group Services Ltd operates the following core principles:

Transparency

• All assignment rate breakdowns must be fully visible and auditable
• Contractors must receive:
  • A Key Information Document (KID) prior to engagement
  • A payslip breakdown for every pay period
• Agencies/MSPs can access:
  • Real-time assignment-to-net calculations
  • KID per payslip via the portal

Accuracy

• All calculations must be:
  • Validated against HMRC-compliant methodologies
  • Reconciled at payroll level
• Payslips are checked post-payroll against HMRC tools to ensure:
  • Correct PAYE deductions
  • Accurate NIC calculations

Consistency

• Assignment rate calculations must follow a standardised methodology across:
  • All workers
  • All agencies
  • All payroll cycles
• No unauthorised deviation from agreed rates is permitted

No Misrepresentation

• Contractors must never be:
  • Misled regarding expected take-home pay
  • Provided with inflated or unrealistic net projections
• All illustrations must:
  • Reflect realistic tax treatment
  • Clearly state assumptions

Auditability

• Every assignment rate must be supported by:
  • Source documentation (agency confirmation, contract, schedule)
  • System-generated calculations
• Full audit trails must be retained within the PGS portal

Assignment Rate Process

Rate Agreement

• Assignment rates must be confirmed in writing by:
  • The recruitment agency and/or MSP
• Rates must include:
  • Frequency (hourly/daily/weekly)
  • Expected working pattern
  • Any uplifts or adjustments

KID Issuance

• A Key Information Document (KID) must be issued:
  • Prior to the first assignment
  • Reflecting the agreed assignment rate
• KIDs must:
  • Clearly show deductions
  • Be aligned with actual payroll calculations

Payroll Processing

• Assignment rates are processed through payroll using:
  • Standardised calculation models
• All statutory deductions are applied:
  • PAYE tax
  • Employee NIC
  • Employer NIC
  • Apprenticeship Levy (if applicable)

Payslip Verification

• Every payslip is:
  • Verified against HMRC-aligned calculations
  • Made available via the portal
• Discrepancies (if any) are:
  • Investigated immediately
  • Corrected in the next available payroll run

HMRC Alignment & Proof

• Assignment rate outcomes are linked to:
  • RTI submissions
  • PAYE liabilities
• Through the PGS portal:
  • Agencies/MSPs can view live HMRC payment verification
  • Assignment rates can be traced to:
    • Tax liabilities
    • Payments made to HMRC

Changes to Assignment Rates

Any change to an assignment rate must:

• Be agreed in advance with the agency/MSP
• Be documented in writing
• Trigger:
  • A revised KID (where applicable)
  • Updated system records

Retrospective changes are strictly prohibited unless:

• Required to correct an error
• Approved by senior compliance personnel

Roles and Responsibilities

Compliance Team

• Monitor adherence to this policy
• Conduct periodic audits
• Ensure alignment with legislation and HMRC standards

Payroll Team

• Process assignment rates accurately
• Apply correct statutory deductions
• Escalate discrepancies

Agencies/MSPs

• Provide accurate assignment rate information
• Confirm working patterns and expectations
• Notify PGS of any changes promptly

Contractors

• Review KIDs and payslips
• Raise any queries promptly

Monitoring and Audit

People Group Services Ltd maintains:

• Full audit trails for every assignment rate
• Portal-based transparency tools, including:
  • Payslip-level breakdowns
  • RTI drilldowns
  • HMRC payment verification

Regular audits include:

• Internal compliance reviews
• External accreditation checks (e.g. Professional Passport, SafeRec)
• Supply chain transparency assessments

Risk Management (JSL Alignment)

This policy forms part of PGS’s strategy to mitigate Joint and Several Liability (JSL) risk by ensuring:

• Assignment rates are correctly calculated and reported
• PAYE liabilities are fully accounted for
• Agencies/MSPs have real-time visibility of liabilities and payments

Breach of Policy

Any breach of this policy may result in:

• Immediate investigation
• Correction of affected payments
• Suspension of assignments or relationships
• Escalation to regulatory authorities where required

Review and Governance

This policy will be:

• Reviewed annually or sooner if legislation changes
• Updated in line with:
  • HMRC guidance
  • Employment law developments
  • Industry best practice

Declaration

This Policy is approved by the Board of Directors of: People Group Services Limited Company Number: 11570329

Last updated: 25th March 2026