15 March 2017 
Emma Keenan, Procurement Specialist
You should now be aware of the changes to the IR35 legislation, which require that Universities (and other public bodies) assess whether any individuals who supply services to the institution via an intermediary organisation now fall under IR35 and, if they do, must deduct PAYE income tax and NICs from their payments. Due to the differences in their internal structures, different universities are approaching the issue in different ways. However, there are some key responsibilities which should be considered by procurement in every HEI:
1) Ensure you are aware of the changes to the regulations, full information on which is here. The changes come in on 6th April
2) Identify a list of persons, personal supply companies or agencies in your supply base to whom the off payroll rules may apply. This may not be the responsibility of procurement, it if isn’t, the need must be highlighted to the correct persons which may be in Accounts Payable, Payroll, HR or Tax. HMRC have produced a tool which can then be used which might help you to confirm whether or not a particular, specific engagement is akin to employment and would come under the new rules. I would add that this is not a mandatory tool and there have been mixed feelings about how useful it actually is. You can see that here.
3) Write to all persons identified confirming the changes and how you will be managing the process, what your responsibilities are, and what they need to do - including how to query.
4) Terms and conditions for these types of suppliers should be reviewed to ensure appropriate clauses are now included. This may cover right to substitution and payment terms amongst other things. Seek advice from your legal team to ensure these are appropriate.
5) Consider how you will identify new suppliers to your institution to ensure these are managed appropriately in the future.
Legal firm Weightmans have circulated an article providing more information, which you may find useful.
