CHANGES TO THE PAYROLL SYSTEM FOR NON-UNIVERSITY PAYROLL INDIVIDUALS
Previously individuals requiring payment who were not employees of the University were paid via the Modified Payroll System. This system was set up in the early 1980’s and treated everyone identically, e.g. only deducting basic rate tax.
Since 6th April 2012 HMRC will no longer allow the old “Modified Payroll” system to be used and a new system has now been developed. This new system classifies individuals as:
- Self Employed: where an individual (not employed by the University and not a student) carries out lecturing, supervising or teaching for a maximum of 5-sessions a term or a maximum of 14-sessions per year. e.g. those carrying out Examining, Lecturing, Teaching or Supervision will normally fall into this category.
- Employee: an individual meeting the above criteria but exceeding the limits detailed above.
- Worker: students undertaking more regular work – over 6-hours a week for more than 8-months a year. e.g. those individuals carrying out Demonstrating.
In each of the above categories different forms will need to be completed and checks carried out to ensure that an individual is entitled to carry out work. A flow chart has been devised to help in identifying which category individuals fall into and hence, which forms will need to be completed. In all cases information will be required prior to an individual carrying out any duties and, where payment is to be made, an NI number may have to be applied for (the University can no longer issue temporary NI numbers).
To enable employment checks to be carried out and ensure that the correct documentation is raised Senior Demonstrators will be contacted one month before the start of term and asked to supply details of all those they have identified to carry out Demonstrating, Supervising, Lecturing, etc. This will ensure that individuals can legally carry out the duties asked of them and that contracts are in place. Without a contract payment cannot be processed. Payment will be made after the end of each term.