There are certain exceptions to the rules about “deemed employment” where people are being retained to undertake very short term academic tasks. These can be paid through the UPS using a UPS1 form as ‘automatic self-employed’ without the need to seek clearance from the Tax Team.
|The Services||ONLY payments for the following services can be paid through the UPS using a UPS1 form, limited to fees for:
|The Test||The individual must meet the following test:
they must be lecturing, teaching or conducting supervisions for not more than 5 sessions per term AND not exceeding 14 sessions in a year.
|Definition of a session||Where an individual is teaching the same subject to the same group of students but cannot be longer than a day.|
Workers and demonstrating
Payments for demonstrating should always be paid through payroll and will always be taxable. A UPS2 form should be used for these payments.
A UPS2 form should always be used where the department engages a worker. Information on the definition of a worker can be found on the University Information Services web pages or by contacting your HR contact. (Details of how to contact HR are in Other Considerations).
Where the tests are not met
Any individual who does not meet this test may be a worker or an employee; you should consult your HR contact in these circumstances. If an individual cannot be paid through the UPS system and it is believed that there is a case for self-employment an online FD3 should be submitted.
If, on the basis of the evidence provided, it is agreed that payment without accounting for PAYE and NICs is appropriate, a clearance number will be given. This can then be quoted when requesting that the service provider is set up as a supplier or if a payment is subsequently queried.
A Tax Clearance Number (TCN) is issued for a specific contract/ assignment / piece of work etc. A service provider who has been given a clearance will have an expiry date. The supplier on UFS will also have an ‘end date’ to reflect the limit of tenure.
Clearance should be sought at the earliest possible opportunity and certainly in advance of issuing a contract (or purchase order), receiving an invoice or the services being provided. Service providers cannot be set up as suppliers on UFS without a clearance number and existing suppliers may be deactivated or payments suspended until status is established.