1. Decision Tree for Status Decision on New Supplier Engagements
START HERE No
Are you contracting for services?
Normal Procurement Process
Yes
Are you contracting directly with an individual?
Yes No
Is the individual resident outside the UK for tax purposes?
Yes No
Complete and return CSAF1 to Tax Manager
What type of supplier is being considered?
Limited company
Partnership (including LLPs)
Agency
Go to Flowchart PSC ‘A’
Go to Flowchart PSC ‘B’
Go to Flowchart PSC ‘C’

2. Flowchart PSC ‘A’
Is the company a Managed Service Company (MSC) or an umbrella company? (see PSC Note ‘D’)
Yes No
MSC and umbrella companies are
outside the scope of the off-
payroll working rules – follow the normal supplier engagement
process
Are the services being provided
fully ‘contracted-out’ (i.e. is a complete function, such as HR, being outsourced under the contract)? No
Is the worker an office holder of the university? (see PSC Note ‘E’)
Yes
Yes No
Normal supplier process
Worker is an employee – contact HR for casual contract
Does the worker being supplied by the company have a ‘material interest’ in that company? A material interest means:
the ability to control directly or indirectly more than 5% of the company’s ordinary share capital; or
possession of, or the right to acquire, rights that grant their holder more than 5% of the distributions of the company; or
If the company is a ‘close company’ (i.e. 5 or fewer participators own and control it), holding rights that entitle them to more than 5% of assets on winding up No No
Does the worker have to personally perform the services?
Yes
Yes
Are the engagement contracts directly between the individual and the University? No
Complete CSAF1 and return to Tax Manager
Yes
Complete CSAF1 and return to Tax Manager

3. Flowchart PSC ‘A’
Is the company a Managed Service Company (MSC) or an umbrella company? (see PSC Note ‘D’)
Yes No
MSC and umbrella companies are
outside the scope of the off-
payroll working rules – follow the normal supplier engagement
process
Are the services being provided
fully ‘contracted-out’ (i.e. is a complete function, such as HR, being outsourced under the contract)? No
Is the worker an office holder of the university? (see PSC Note ‘E’)
Yes
Yes No
Does the worker have to personally perform or are they obligated to personally perform the services?
Normal supplier process
Worker is an employee – contact HR for casual contract No
Yes No
Does the worker being supplied by the company have a ‘material interest’ in that company? A material interest means:
the ability to control directly or indirectly more than 5% of the company’s ordinary share capital; or
possession of, or the right to acquire, rights that grant their holder more than 5% of the distributions of the company; or
If the company is a ‘close company’ (i.e. 5 or fewer participators own and control it), holding rights that entitle them to more than 5% of assets on winding up
Complete CSAF1 and return to Tax Manager
Yes

4. Flowchart PSC ‘B’ Supplier is a partnership or LLP
New rules will apply - contact Tax Manager
Is the worker an office holder of the University and do the services being provided relate to that office? (See PSC Note ‘E’)
Yes No
Does the individual personally perform or is under an obligation to personally perform the services?
Normal procurement
process
Yes No
Does the worker, alone or with relatives, control 60% or more of the profits of the partnership?
Yes No
Are the engagement contracts directly with the individual, rather than with the partnership?
Yes No
Under the partnership profit-share agreement, does the income of any of the partners depend on the amount of income generated by that partner from the provision of services they personally provide to the University?
Complete CSAF1 and return to Tax Manager
Yes No
Do most of the profits of partnership derive from the provision of personal services to a single client?
Yes No
Are the circumstances of the services being procured such that, if they were provided directly between the worker as an individual and the University without involving the partnership, they would be treated as an employee?
Yes No

5. Will the agency be paying the worker’s personal service company?
Flowchart PSC ‘C’
Supplier is an agency
Does the agency engage directly with the self-employed individual and operate PAYE and NIC or engages them on a self-employed basis but operates PAYE and NIC under agency rules? No
Normal AP procurement
process
Will the agency be paying the worker’s personal service company?
Yes No
If the worker is not employed on a PAYE/NIC basis by the agency, we have to assess if they are subject to the new rules and inform the agency accordingly.
If requested in writing by the agency, the University must advise them whether the worker falls within the new IR35 rules and be treated as if they were an employee rather than self-employed within 31 days of the request or else we must withhold ourselves. If the agency doesn’t ask the question, the responsibility to deal with the taxes remains with them, the University doesn’t have to do anything
If agency issues request
Complete CSAF1 and
Return to Tax Manager
NOTE: The University has written to the agencies with which we most frequently engage and advised them that we will regard all staff supplied to us as within the new rules

6. PSC Note ‘D’ – MSCs & Umbrella companies
Entity Type
What it means
Managed Service Company (‘MSC’)
An MSC is a limited company through which the worker provides their services to the University, but over which they or their associates/family members do not exercise control.
If the worker is providing their services through a managed service company, there is other tax legislation that applies which has a comparable effect to the off-payroll working rules for the public sector and requires the MSC to withhold taxes and remit them to HMRC.
If the worker is providing their services through an MSC, they will know this and should be able to advise the Engager that this is the case before they start the contract.
Umbrella company
An umbrella company is a company that acts as an employer to agency contractors who work under a fixed term contract assignment. In these cases, the worker will sign an employment contract with the umbrella company, who engages with the University and then the umbrella company deducts PAYE and National insurance from the payments it remits to the worker from the invoices it is paid by the University.
In both MSC and Umbrella Company situations, the worker will be aware that they are engaging with the University through these types of entities and will be able to provide this information to the Engager.
In both instances, because the companies will be required to withhold payroll taxes for payments made to the worker, the University is not required to determine whether the worker is our employee, because they are already an employee of the MSC or umbrella company.

7. PSC Note ‘E’ – What is an ‘office’ of the University?
An ‘office’ of the University is a position which has an existence independent of the person filling the role. The following are ‘offices’:
statutory appointments, such as registered company directors or secretaries, board members of statutory bodies, or crown appointments
appointments under the internal constitution of an organisation, such as club treasurers or trade union secretaries
appointments under a trust deed, such as trustees
ecclesiastical appointment, such as members of the clergy
Examples of positions that are not ‘offices’ would include the Director of Finance, any Deans of Schools, Professors.
You are very unlikely to be appointing an office-holder, but if you are unsure for any particular engagement, please contact the Tax Manager.