4.1 Where it is proposed to engage an individual to provide services personally either directly, or through a company, partnership or agency, clearance must be obtained from the Tax Team prior to engagement. In the first instance, please read the University’s guidance on https://www.finance.admin.cam.ac.uk/policy-and-procedures/financial-procedures/chapter-5a-employment-status/factors-determining-deemed.
4.2 To obtain clearance, an online FD3 form must be completed, which the Tax Team will review to determine employment status for tax purposes. Unless further information is required, a decision will be given within 10 working days of receipt.
4.3 If it is determined that the individual is in ‘deemed employment’ for tax purposes (e.g. an off-payroll worker), then payment will be made subject to PAYE withholding (i.e. after deducting income tax and NIC). Classification of an individual as a deemed employee for tax purposes will not confer any employment rights on the individual.
4.4 If not ‘deemed employment’ then the Tax Team will issue a Tax Clearance Number and the supplier can be paid gross via CUFS on an invoice basis. However, where there is an on-going relationship with the supplier, the tax clearance number will have an end date so that the supplier can be reviewed on a regular basis to ensure they continue to comply with Off-Payroll Worker legislation (e.g. there is no fundamental change to the contractual relationship or the individual has not become integrated within the University, etc.).
4.5 Self-Employed (External Occasional Lecturers and Examiners)
4.5.1 Where an individual, who is not employed/engaged elsewhere across the University is being engaged to give a one-off talk or short series of talks on a subject about which they have specialist knowledge, and which is not part of the core curriculum, they can usually be engaged as self-employed and paid via UPS1.
4.5.2 Where an individual, who is not employed/engaged elsewhere across the University, is being engaged to provide services as an external examiner for higher degree examining, they will usually be engaged as self-employed and paid gross (i.e., without tax or NI deductions) via UPS1.