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HMRC internal manual

VAT Education Manual

Group 6 Item 5 Vocational training: Employment Zones: payments by Jobcentre Plus

The outstanding feature of the payment structure is that Jobcentre Plus will pay the contractor set amounts for delivering the service, regardless of what the latter has to expend from its own resources or procure from third parties and regardless of how quickly or slowly particular outcomes are achieved.

The contractor has no guarantee regarding the total value of payments it will receive from Jobcentre Plus except in respect of the First Step payments. There the contractor is entitled to invoice the Department for the actual number of starts in a month, or 90% of anticipated starts, whichever is the greater.