Cambridge University Technical Service (CUTS) is a wholly owned subsidiary of a Cambridge Enterprise Limited. By using CUTS, the University is able to avoid incurring a tax charge on profitable consultancy work, and also ensure that its charitable status is not subject to challenge.
CUTS is administered by the staff of Cambridge Enterprise and has no employees. CUTS has a separate VAT number to the University and undertakes work in lieu of the University where the work is not deemed charitable. This is primarily for the provision of consultancy work by University staff. CUTS also acts as a billing service for private medical practice, performed by University staff that have clinical responsibilities in the National Health Service. .
Details of how to use Cambridge Enterprise Consultancy Services and CUTS can be found here.
Cambridge Enterprise Consultancy Service:
- undertakes due diligence;
- negotiates fees, terms and conditions;
- draws-up contracts between CUTS and the client;
- invoices the client, collects income and chases debt.
Consultancy services charges a management fee of 12.5% from collected income.
Twice per year, CUTS transfers designated income to the University, which is then rolled back to the originating department.