Purchasing procedures - University of Central Lancashire

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Appendix 2 Advice on Differentiation between Employee and Self-Employed Status Firstly, it must be emphasised that the distinction between a contract of employment and a contract for services is very important. It affects whether a person is liable to pay income tax under PAYE, the level of National insurance contributions paid, whether a person is entitled to Statutory sick pay and whether the person has the employment protection and other rights of an employee. The difficulty for employers in making this distinction is that even when both parties explicitly agree that the contractual relationship between them is to have the status of a contract for services rather than be governed by a contract of employment, this agreement could be challenged by HMRC. Such a challenge could involve HMRC imposing expensive financial penalties. In some purported self-employment cases the HMRC has claimed arrears of PAYE from the employer on the grounds that the reality of the relationship was that of employer and employee under a contract of employment. The University wishes to minimise the risk of this situation arising and, accordingly, wishes to ensure that the contractual arrangements entered into correctly reflect the status of that relationship as either one of employment or self-employment. This issue is not merely of hypothetical interest. In a recent case a University had to defend itself at an Industrial Tribunal case brought by a person formerly engaged by that University on a self-employed basis who claimed that in reality he was an employee of the University and should, therefore, enjoy specific employment rights and protections. Correspondence was also issued to the same University from the HMRC querying the self-employed status of another individual paid by the University on a consultancy basis. Unfortunately, there is no simple checklist of factors which allow the distinction between the two categories of contractual relationships to be safely made. The courts have made judgments on individual cases based on an overall assessment of all the relevant factors in a particular case, accepting that not all the relevant factors are of equal weight or importance in any given situation. Being employed or self employed in one job does not mean that a person will have the same status in another job. A consultant could be employed and self employed at the same time. It is the responsibility of those engaging consultants to ascertain the correct status. The HMRC do have a useful online tool to try; https://esi2calculator.hmrc.gov.uk/esi/external-cod.html which provides a series of questions for you to answer, and then provides a guide to the consultants status. Employed or self-employed? A consultant answering „Yes‟ to all of the following questions may indicate employee status. 1. Do you have to do the work yourself? 2. Can someone tell you at any time what to do, where to carry out the work or when and how to do it? 3. Do you work a set amount of hours? 89 | 9 2
4. Can someone move you from task to task? 5. Are you paid by the hour, week or month? 6. Can you get overtime pay or bonus payment? A consultant answering „Yes‟ to all of the following questions may indicate self-employed status. 1. Can you hire someone to do the work for you or engage helpers at your own expense? 2. Do you risk your own money? 3. Do you provide the main items of equipment you need to do your job, not just the small tools many employees provide for themselves? 4. Do you agree to do a job for a fixed price regardless of how long the job may take? 5. Can you decide what work to do, how and when to do the work and where to provide the services? 6. Do you regularly work for a number of different people? 7. Do you have to correct unsatisfactory work in your own time and at your own expense? The general advice is that wherever there is an element of ambiguity about the status of a proposed contractual relationship the University should commission the work under a contract of employment so as to eliminate vulnerability to subsequent challenge by either the HMRC or the DSS in respect of PAYE contributions or National Insurance contributions respectively. Please do not hesitate to contact Margaret Good, the Payroll Manager (x 2213 / MEGood@uclan.ac.uk) whenever you are in need of advice as to the appropriate nature of any proposed contractual relationship. Finally, All formal offers of employment and contracts of employment may only be issued by Human Resources (with the authority of the Head of Service). and When you propose to enter into a contract for services you must first send a new supplier account request to the Purchasing Office. 90 | 9 2
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University of Central Lancashire Pu
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INTRODUCTON The purpose of these pr
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PURCHASING POLICY The University's
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2 PRIMARY BUDGET HOLDER PURCHASING
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Value of Order/Contract (Exclusive
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PURCHASING PROCEDURES 5 SELECTION O
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PURCHASING PROCEDURES 7 EU PROCUREM
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2 VALUATION OF A CONTRACT The propo
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2.4 Waivers for „Small Lots‟ Fo
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4.3 Negotiated Procedure Under the
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authority and suitable candidates i
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Accelerated participate from date c
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is most economically advantageous t
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8 USE OF PURCHASE ORDERS PURCHASING
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10 USE OF SPECIFICATIONS PURCHASING
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PURCHASING PROCEDURES 11 CONTRACTS
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PURCHASING PROCEDURES 13 BUYERS GUI
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15 FINANCIAL HEALTH CHECKS PURCHASI
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17 APPROVED SUPPLIERS PURCHASING PR
Page 39 and 40: 1. Overview The introduction of the
Page 41 and 42: Cards cannot be used for obtaining
Page 43 and 44: In the event of non-settled dispute
Page 45 and 46: Your browser is the piece of softwa
Page 47 and 48: APPENDIX A (Flow Charts) A.1 Purcha
Page 49 and 50: A.3. Dealing with the Purchasing Ca
Page 51 and 52: A.5 Checking of the VAT Invoice Res
Page 53 and 54: APPENDIX C Purchasing Card Transact
Page 55 and 56: B. Quick Reference Guide for Intern
Page 57 and 58: Ensure that the Transaction Log (if
Page 59 and 60: Ensure the correct project code, ac
Page 61 and 62: 2.8 Best Practice Purchasing over t
Page 63 and 64: your card administrator for guidanc
Page 65 and 66: A.2. Problems with Supply of Goods
Page 67 and 68: A.4. Dealing with the Corporate Car
Page 69 and 70: APPENDIX B Quick Reference Guide fo
Page 71 and 72: PURCHASING PROCEDURES 20 NEGOTIATIO
Page 73 and 74: 6. Ethics Contracts for the supply
Page 75 and 76: Most agencies now insist the instit
Page 77 and 78: 1. Foreword The purpose of this doc
Page 79 and 80: Samples used in surveys should be r
Page 81 and 82: point of elicitation of participant
Page 83 and 84: 3.5 Single Source Tenders or Quotat
Page 85 and 86: GUIDELINES 5.1 Introduction The pro
Page 87 and 88: 5.6 Assessment of Responses 5.6.1.
Page 89: Appendix 1 (see point 5.11) Current
Page 93: PURCHASING PROCEDURES 23 PURCHASING
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Purchasing procedures - University of Central Lancashire

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