EMPLOYMENT STATUS QUESTIONNAIRE – ENGAGEMENT HAS STARTED
INDIVIDUAL WORKERS (SOLE TRADERS) AND WORKER SERVICES PROVIDED VIA INTERMEDIARIES
This questionnaire has been developed to help the University determine:
- if an individual can be categorised for tax purposes as self-employed (in which case they can be paid gross) or as an employee, in which case they should be paid through the University’s payroll, withtheir payments subject to Tax and Class 1 employee National Insurance Contributions (NICs). A Class 1 employer NIC charge will also arise for the University on these payments;
OR
- if a particular engagement falls within the intermediaries legislation (known as IR35). Engagements that are within the IR35 rules mean that the worker’s intermediary (e.g. Personal Service Company or partnership) will be paid through the University’s payroll with invoice payments being paid after deductions of Tax and employee NIC. The University will also be liable for employer NIC on these payments. Engagements that are outside of the IR35 rules mean that the worker’s intermediary will be paid through Accounts Payable with no deductions of tax or Class 1 employee/employer NIC.
The information provided in this questionnaire will be used to populate HMRC’s Check of Employment Status for Tax (‘CEST’) tool which gives the University HMRC’s view on whether:
- the IR35 public sector rules apply to an engagement
- a worker should pay tax and NIC through PAYE for an engagement (i.e. they are considered to be employed not self–employed for tax/NIC purposes)
This questionnaire together with the output delivered from the ESS will form part of the evidence we may provide to HMRC, as part of an audit, to demonstrate that due consideration has been given to the employment status of workers providing services to the University. Please ensure all questions are answered and the responses are a true reflection of the anticipated working practices of the engagement. Failure to provide accurate information could potentially lead to the University becoming liable for unpaid tax, National Insurance and financial penalties.
Who should complete the questionnaire?
Usually, but not always, this will be the school/college/department recruiting or hiring manager. It should be the person within the University who has the most current and accurate knowledge and understanding of the following:
- the worker’s responsibilities
- who decides what work needs to be done
- who decides when, where and how the work is done
- how the worker will be paid
- if the engagement includes any benefits or reimbursement for expenses
You should choose answers that best match the usual working practices of the engagement.
When should the questionnaire be completed?
Wherever possible, prior to engaging the services of a worker.
If not, and the work has started, but payment has not yet been made for work performed, prior to any payment.
It will also be necessary to complete a further questionnaire in circumstances where, for example:
- there is an additional engagement of the same contractor
- contracts are altered or renewed;
- the worker undertakes additional work or projects (variation or extension to scope
of work under existing contract);
- any material change occurs to working practices for the delivery of services
Where do I send the questionnaire?
Once completed this form must be submitted to Payroll at Charles Stewart House, 9-16 Chambers Street, Room B1.6, or emailed to
General information
School/Department:Engager:
Contact name (if different)
Phone number:
Email address
How does the worker provide their services to the University / Please highlight or select only one option.
Sole Trader or Partnership or Limited Company
If Limited Company or Partnership:
- Name of person who owns the business
- Name of the Company or partnership
- Name of person or persons who undertakes the work
If Sole Trader, full name:
Business address
Please provide a detailed description of the services the worker will provide to the University as a sole trader, or where applicable through their company or partnership:
IMPORTANT: Hasa written contract been put in place? (please attach a copy)
If the services are for Lecturing or Teaching, are theyopen to the general public?
What are the proposed start and expected end dates of the work?
What is the total cost of the engagement expected to be?
Are the services being provided by a former employee of the University?
Is this service to cover existing employee duties e.g. sickness, maternity cover? If yes please provide details:
Engagement details:
- Has the worker's business arranged for someone else to do the work instead? This means someone who:
- Was equally skilled, qualified, security cleared and able to perform the worker's duties
- Wasn't interviewed by the end client before they started (except for any verification checks)
- Wasn't regularly engaged by the end client
- Did all of the worker's tasks for that period of time
- Was substituted because the worker was unwilling or unable to do the work
Yes - and the University agreed (please provide details, including the name of the
substitute, the dates involved and provide evidence of the process which
resulted in the proposed substitute being accepted. Please go to question 3)
Yes - but the University didn't agree (please got to question 4)
Comments:
- If the worker's business sent someone else to do the work (a substitute) and they met all the necessary criteria, would the University ever reject the substitute? The criteria is as follows:
- is equally skilled, qualified, security cleared and able to perform the worker's duties
- won't be interviewed by the University before they start (except for any verification checks)
- not being from a pool or bank of workers regularly engaged by the University
- doing all of the worker's tasks for that period of time
- being substituted because the worker is unwilling or unable to do the work
Yes - the University has the right to reject a substitute for any reason, including if it
would negatively impact the work(please go to question4)
No- the University would always accept a substitute who met these criteria (in the
comments section please explain why you consider this is the case and confirm that
any contractual terms and conditions which govern the engagement allow for this.
Please go to question2A)
(Note: If we will place conditions on accepting a substitute or retain the decision on whether a substitute is acceptable, then the right of substitution is limited and you should answer YES)
Comments:
2A.Would the worker's business have to pay the person who did the work instead of them?
NOTE: If the substitute would be paid by an agency, it won’t count as substitution.
Yes – please go to question4
No – please go to question4
- Did the worker's business pay the person who did the work instead of them?
No – please go to question 4
- Has the worker's business needed to pay a helper to do a significant amount of the work for this engagement?
For example - if a lecturer was hired by the university to write and deliver a study module:
- a researcher hired to source information could be classed as doing a significant amount of the lecturer's work
- a company the lecturer pays to print and bind materials for the module would not be classed as doing a significant amount of the work
No
Comments:
- Can the University move the worker to a different task or project than those they originally agree to do?
Yes - without the worker's agreement (if the worker doesn't want to change task or
project, the University would no longer engage them)
No - that would need to be arranged under a new contract or formal agreement
Comments:
- Once the worker starts the engagement, can the University decide how the work is done? This includes the need to follow the University’s specific employee procedures, processes or guidelines. It doesn't include following statutory requirements like health and safety.
The worker decides how the work needs to be done without any input from the
University
The worker and other people employed by the University agree how the work needs
to be done
The University decides how the work needs to be done without input from the worker
The University can't decide how the work needs to be done because it's a highly
skilled role
PLEASE PROVIDE A DESCRIPTION IN THE COMMENTS SECTION OF ‘HOW’ THE WORK IS DONE IN SUPPORT OF YOUR RESPONSE
Comments:
- Can the University decide the schedule of working hours?
The worker and the University agree a schedule
The University decides the worker's schedule
No schedule is needed as long as the worker meets any agreed deadlines (e.g. one-off
workshops or training sessions)
IN SUPPOPRT OF YOUR RESPONSE PLEASE PROVIDE A DESCRIPTION IN THE COMMENTS SECTION OF THE WORKING SCHEDULE AND HOW THIS WAS DECIDED
Comments:
- Can the worker choose where they work?
No - the University decides
Partly - some work has to be done in an agreed location and some can be done
wherever the worker chooses
No - the task determines the work location (e.g. lectures or events involving students
or photography/video recordings at specific venues)
IN SUPPOPRT OF YOUR RESPONSE PLEASE PROVIDE A DESCRIPTION IN THE COMMENTS SECTION OF THE LOCATION(S) OF WORK AND HOW THIS WAS DECIDED
Comments:
- What does the worker have to provide for this engagement that they can't claim as an expense from the University or, if applicable, an agency?
- the worker has to provide to complete this specific engagement
- aren't provided by the University
- could place the worker at financial risk if the cost isn’t regained
The purpose of this question is to establish the level of financial risk for the worker. These must be items that you require the worker to provide for the particular engagement, it is not enough for the worker to choose to update this equipment or provide materials where there is no requirement to do so.
Dealing in particular with ‘equipment’, this needs to be significant for the role - you would not expect the purchase of a laptop or mobile phone to represent a significant piece of equipment.
General business expenses such as indemnity insurance, finance and legal costs, CPD etc are NOT relevant expenses for the purposes of their specific engagement with the University.
Select all that apply(if selecting one or more of the below, please provide details in the comments section below of University mandated costs as a proportion of overall contract value):
Materials - items that form a lasting part of the work, or an item bought for the work
and left behind when the worker leaves (not including stationery, and most likely to
be relevant to substantial purchases)
Equipment - including heavy machinery, industrial vehicles or high-cost specialist
equipment, but not including phones, tablets or laptops
Vehicle – including purchase, fuel and all running costs (procured and used only for
University work engagements, not including commuting).
Other expenses – including significant travel and subsistence expenses (not including
commuting) or the cost of a business premises outside of the home
Not relevant
Comments:
- What is the main way the worker is paid for this engagement?
A fixed price for a specific piece of work
An amount based on how much work is completed
Other (please provide details)
IN SUPPOPRT OF YOUR RESPONSE PLEASE PROVIDE A DESCRIPTION IN THE COMMENTS SECTION OF HOW PAYMENT FOR THE WORK HAS BEEN PRICED
Comments:
- If the University isn't satisfied with the worker's output, does the worker have to put it right at their own cost?
incur significant additional expenses or material costs
Yes - the worker would have to put it right without an additional charge, but wouldn't
incur any costs
No - the worker would put it right in their usual hours at the usual rate of pay, or for
an additional fee
No - the worker wouldn't be able to put it right because the work is time-specific or
for a single event
No – they wouldn't need to put it right
Comments:
- Is the worker entitled to any of these benefits from the University?
- Sick pay
- Holiday pay
- A workplace pension
- Maternity/paternity pay
- Other employee benefits (please provide details)
Yes
No
- Is the worker responsible for any of these duties for the University?
- Hiring workers
- Dismissing workers
- Delivering appraisals
- Deciding how much to pay someone
- Other line management duties (please provide details if applicable)
No
- Does the worker interact with the University’s students, or any third parties as part of their work? These are people who use or are affected by the services provided. This would not include the worker's colleagues or other University employees
No- go to final section and provide any other information you consider relevant
Comments:
- When the worker interacts with the University’s students, or third parties, how would they identify themselves?
They're an independent worker acting on behalf of the University
They work for their own business
Comments:
Please provide any other information you consider is relevant for the purposes of determining whether this engagement is inside/outside IR35:
By signing below, I certify that all information contained in this document is true and correct to the best of myknowledge
Signed: / Date:
PRINT NAME:
September 17