Engaging self-employed people

‌Most individuals engaged to conduct work for the University are employed via a contract of employment which is either:

  • Permanent (open-ended)
  • Temporary (fixed term)
  • or Casual via our Temporary Resourcing Unit

There are occasions when the University needs work done on a very short-term or one-off basis (e.g. to deliver a lecture on a specific topic, contribute expertise to a particular project).  In these circumstances we offer a ‘contract for services’ and engage someone on a self-employed basis.

A self-employed individual provides the University with his or her services, but remains independent. The contract between the individual and the University is ‘a contract for services’. Services may also be provided through a company. Self-employed workers are not entitled to statutory employment rights.

IR35 Tax Legislation states that where an individual offers services through a company (self-employed and Personal Services Companies) and the nature of the relationship is more akin to an employee, then the individual should be taxed and pay national insurance as if they were an employee.  In this case we pay via our casual claims process.  If the nature of the work is truly self-employed, then we can pay via our standard procurement process (e.g. invoice).

Click on this link for more information

It is the responsibility of the College or Service engaging an individual to determine whether the engagement is self-employed (contract for services) or should be paid via our casual claims so that tax and NI can be deducted.

In the majority of cases an employee of the university would not be deemed to be carrying out any additional work on a self-employed basis.

1. Check employment status before any work starts - each engagement must be checked in its own right according to the working arrangements you need. Complete a TR2 request‌ and the online HMRC questionnaire.

2. Send those documents to the Temporary Resourcing Unit (TRU) 2 weeks before the work starts. The TRU will then check compliance and return back your forms with a reference number within 2 working days providing you with advice on the next steps.

Employment Status Quick Guide:‌

  • Permanent: An open ended  role on our establishment
  • Fixed Term Contract: A role on our establishment for longer than 12 weeks
  • Casual: A short term role up to 12 weeks
  • Contract for Services: A one off / occasional work

The table below will also help you to determine how to engage the worker:

We’ve produced a list of the sort of people we engage at the University for one-off or short term assignments, eg visiting lecturer, external trainer, photographer so you can see if the procedure is affected by these changes.

Common Roles Guidance‌

We are offering workshops for staff who contract with/engage in contracts for services.  These workshops will demonstrate the new process and explain the importance of compliance with this legislation.

These workshops will be attended by Roger Bennett, Tax Manager, and are an ideal opportunity to raise your questions/concerns about your existing contracts to get advice on any of the risks and steps to mitigate any future challenge from HMRC.

HMRC regularly conduct audits and some Universities have faced heavy penalties for noncompliance.  So we are grateful to colleagues for making some changes, we recommend you to share this note with relevant staff, and do come along to the workshops to ensure correct procedures are being followed.

Initial workshops will be on the following dates and are filling up fast:

25th July 2019 - 12.00 till13.00 Streatham

29th July 2019 - 14.00 till 15.00 Streatham

8th August 2019 – 14.00 till 15.00  Streatham  and also available in Penryn via video conference

28th August 2019 – 10.00 till 11.00 Streatham

New Dates

17th September 2019 - 11.00 till 12.00 Streatham

19th September 2019 - 15.00 till 16.00 St Lukes

For further information and to book onto a workshop please email e-claims@exeter.ac.uk now.

Further workshop dates will added here depending on demand

All forms should be completed and approved two weeks before any work commences. This will allow for the engagement of temporary workers process to run smoothly. 

Quicklinks

TR2 Temporary Resourcing Request

Link to HMRC questionnaire

Contract for Services: Terms and Conditions

PPE Template (Permitted Paid Enagagement visitor)

Managers' and Colleges' information for eClaims

Guidance for different job roles

FAQ's SUPPLIER, HMRC, MANAGER