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FAQ' s - Supplier
What is a contract for service?
A self-employed individual provides the University with his or her services, but remains independent. The contract between the individual and the employer is a 'contract for services’. They might also send different people to carry out the work in question. Self-employed workers are not entitled to statutory employment rights.
Individuals engaged on a contract for services:
- bid or provide quotes to secure work and are likely to have other clients in addition to the University.
- maintain control over how, when and by whom the service will be delivered. This means that, generally, there may be an ability to provide an alternative individual (“substitute”) to carry out the service if the individual is not available.
- are paid on receipt of an invoice for work completed.
- will carry the risk for the success or otherwise of their business. This means that if the University is not satisfied with the individual’s work, the University can refuse to pay an invoice or require the individual to put it right in their own time and at their own expenses.
- account for their own tax and National Insurance payments.
- do not receive holiday pay or sick pay or any other employment benefits.
- provide their own equipment/materials to complete a job.
- do not have employment rights, but they are protected for their health and safety on University premises and they are also covered by our equality standards.
- provide their own insurance cover relevant for the work being carried out.
Yes. If engaging someone on a self-employed basis then a formal contractual agreement should be entered into (see Contract for Services: Terms and Conditions), before commencement of the work required. As well as protecting the University’s position as a purchaser of the service(s), the contract is evidence that the arrangement is a contract for services.
Yes, you will need to establish if they are Sole Trader, Partnership, Personal Services Company (Ltd), or via an Intermediary.
The worker will need to be set up as a supplier to the university and a purchase order raised so that the worker can submit an invoice to request payment. As they are based overseas and are working overseas they are not subject to UK tax and NI.
