SE1ABERYSTWYTH UNIVERSITY EMPLOYMENT STATUS QUESTIONNAIRE

This questionnaire is to help establish whether an individual can be paid gross on a self-employed basis or whether they should be paid through the payroll with deductions made for tax and national insurance when supplying services to the University – the questionnaire is NOT required for the supply of GOODS.

This form shows HMRC, in the event of an audit, that due consideration to the employment status has taken place. The questions are based on common law tests of employment. No single question is an absolute indicator of employment status; a decision must be based on the individual circumstances and balance of “Yes/No” responses. If any of the answers to the below are yes, please provide more detail in the comments column. The person may still be classed as self-employed however, it may be more suitable to pay the individual through Payroll.

Insurance

If a worker has employee status with the University, then they are automatically covered by University insurance policies. However, if we are paying a worker gross on a self-employed basis then it is very important that they have appropriate insurances in place.

If the self-employed worker does not have this insurance cover then the University could potentially be at risk. Therefore, insurance is an area that must be considered carefully when determining employment status.

We would normally expect a self-employed worker to have:

a) Professional Indemnity Insurance

and

b) Public Liability Insurance

Section A - To be completed by the DepartmentName of Individual and trading name (if different):

Contact Details: (address, telephone, email):

Unique Taxpayer Reference (UTR) if available:

Please provide a description of the services to be provided by the individual/company:

Expected start and end dates of the work:

Estimated number of days it is expected that the individual will provide services to the University of Aberystwyth over the course of the engagement: _____________

Value to be charged: ____________

Department requisitioner/contact (name and email):

Is the Supplier permanently based overseas and is therefore not a UK Tax Payer? Yes / NoIf Yes, then please state where they reside: _________________________. No further sections of this form need to be completed but the form should be kept in case of audit purposes in the future. If no, then please continue to complete all sections below.

Please answer all the questions below using the comments box when answering Yes.Yes No Notes Comments

1 Is the individual under the supervision or control of the University in carrying out their work? “Control” here refers to being able to choose the hours they work and determine how the work will be carried out.

Although a ‘Yes’ answer is indicative of being an employee, the individual may still be considered self-employed where there is some initial supervision and they are free to perform the duties as they see fit.

2 Is the individual restricted from working for any other organisations/clients during this engagement?

If they are restricted then this is an indication of the University’s obligation to supply work to the individual and the University’s control over this indicates an employer/employee relationship.

3 Does the individual work regular hours (e.g. every Monday, two days per week, or any other regular pattern)? If work is performed on an ad hoc basis please tick “No”.

If yes, then it suggests that the individual has limited control over work performed and it points strongly towards being considered an employee.

4 Is the individual obliged to accept work offered by the University?

If the individual is obliged to accept work offered by the University and the University is obliged to provide work to the individual, this is a strong indication of employment.

5 Will the contract exceed 12 months? If the work is carried out over an extended period of time it may be viewed as an indicator of being an employee.

6 Is the individual prohibited from sending in a substitute to cover for them?

It is typical for a self-employed individual to be able to provide a substitute if they cannot perform the duties (e.g. off sick or on holiday), however it is unlikely that an employee could do the same.

7 In the event that agreed timescales are not met or the work performed is below the required standard, are the costs of rectifying any changes borne by the University? If it is the individual who bears the time /cost of correcting the work please tick “No”.

Typically an employee would correct their errors on the University’s time, whereas a self-employed individual would bear the financial burden of correcting any mistakes in their own time.

8 Are the services provided by the individual similar to that of any employee of the university?

If there is no real difference between the services provided by the individual and that of an employee, this is a strong indication that the individual could be deemed to be an employee.

9 Will the individual be provided with any staff benefits (such as pension, maternity or holiday pay)?

Where an individual is provided with the same staff benefits as an employee this indicates that they are integrated with the organisation to the same extent as an employee, and this therefore points towards being an employee.

Continued Yes No Notes Comments

10 Is the individual providing full-time cover for a full-time employee of the University, (for example maternity or holiday cover)?

If the individual provides full time cover for a full time employee, they may be treated as effectively taking that employment for the duration of the contract. Therefore full time cover is an indication of being an employee.

11 Is the individual provided with a fixed workplace at the University, including the use of a desk, computer? Or does the supplier have a dedicated Aberystwyth University phone line and/or “aber.ac.uk” email address?

Provision of a fixed work place or substantial equipment is an indication that the individual is ‘part and parcel’ of the organisation, and so points to employment. Self-employed individuals typically work from their own office, or if on site, tend to provide their own equipment.

12 Has the individual been engaged for work or been an employee of the University within the last 12 months? If yes, please provide details (e.g. date and circumstances).

If the individual has been an employee of the university within the last 12 months and their current engagement is similar to that previously provided, this suggests that the engagement may merely be an extension of employment.

13 Please confirm that the University is not their only customer and that they supply services to a number of customers.

Providing services exclusively to the University is indicative of employment. Working with several clients is more akin to self-employment, however evidence should be provided to reduce the tax risk of paying the individual gross.

14 Is the individual likely to spend more than 50% of your total working time providing services to the University?

If the majority of the individual’s time is spent working for the University this may indicate an employer/employee relationship.

15 Is the individual VAT registered? Please confirm their VAT number in the comments box if they are.

Employees are outside the scope for VAT. Therefore, if an individual has registered for Vat this is another indicator of self-employment.

16 Do you need to be covered by the University professional indemnity insurance? If you have your own insurance cover, then please answer No.

If the individual provides their work professional indemnity insurance cover this is an indicator of self-employment, as a self-employed individual controls their own work and carries the financial risks of their work.

COMPLETED BY:

NAME (IN BLOCK LETTERS): ……………………………………………………………………………………………………………………………………………………...

SIGNED: ……………………………………………………………………………………………………………………………………………………………………………………

DEPARTMENT: ……………………………………………………………………………………. DATE: ...…………………………………………………………………

Please ensure that the form is completed as comprehensively as possible and that answers are provided accurately to the best of your knowledge. The signed copy can be sent via email to supplier-payments@aber.ac.uk or forwarded to Accounts Payable, Finance Department, Student Welcome Centre.

When the assessment has been completed the Department will be notified of the outcome to the email address provided on the form.

Either:

The individual is assessed as self-employed. If not already on ABW, a supplier account will need to be requested via Procurement and created (subject to certain criteria - if you are unsure please contact Accounts Payable for advice). A purchase order should be raised for the supply of the service(s). The supplier submits an invoice, quoting the Purchase Order to enable payment.

The assessment is inconclusive and referred to the Finance/ HR S-E Group for review. If subsequently the group assess them to be self-employed – as above.

Or:

Following review, the assessment is one of employment, notification will be sent by the Finance/HR S-E Group to the Department Manager stating that work cannot be offered to the individual until approved by PAG (Post Approvals Group). The Manager will need to complete an application to PAG for approval of the post.