Taxable Fees Payments
What are taxable fees payments?
Taxable Fees Payments should be used for fees, expenses or any other taxable payments made to individuals who do not hold a contract of employment with the University; or for payments for work not covered by the contract of employment.
They are not intended to be used on a long term basis and if this is the case the working relationship should be formalised through a contract of employment.
Although Taxable Fees Payments are a relatively quick and flexible way to meet the immediate demands of the Department/College there are still legal requirements to check a person is able to undertake the work. This includes checking if a person is eligible to work in the UK and if they have passed a CRB check (the latter only if required).
What must I consider first - Self-employment?
Before offering work or engaging an individual on taxable fees you must first consider whether the person is self-employed. The self-employment assessment flowchart can help you in this. If you believe the individual is self-employed you must confirm that status by completing a self-employment assessment questionnaire as this may be required by HMRC for audit purposes. This questionnaire once complete is to be sent to Procurement (either with the paper requisition, as an attachment in Acquire or with the supplier details form.) Only upon receipt of this completed form will the order be raised or the supplier added. Please note no documentation relating to the self employed process should be sent to HR.
How do I engage someone on fees?
A New Starter Form Taxable Fees must be completed before the person is engaged to do any work. The form requires the manager and worker to complete the necessary information and to confirm the relevant eligibility checks have been undertaken (this is a legal requirement). This still needs to be done if the employee/worker is a student. The form and copies of the eligibility documents should be forwarded to Human Resources who will arrange for the worker to be given a payroll ID number and entered onto the 'Fees' Payroll. Human Resources will communicate the worker's payroll ID via email to the manager to use when submitting the Payments Form.
When the work is undertaken the on-line Taxable Fees Payments Form should be completed using the worker's payroll ID and submitted to the approver (budget holder). Note the form can be approved by the person who prepares the form so long as they are authorised to approve. An email is sent to one of the authorisers to remind them that the form is there, but any authoriser can approve the form directly on the web page.
Once approved, the form will be processed by Payroll.
There is further guidance available on the use of the on-line form.
Alternatively, currently a hardcopy Taxable Fees Payments Form can be used. This should be forwarded to Human Resources who will check eligibility details before passing to payroll for payment. This process is slower than the online form and so the deadline is earlier.
What are the 'checks' and why must I do them before engaging someone on 'Fees'?
The main checks are those required by the UK Border Agency. The Government are imposing strict regulations on the ability to employ migrant workers (those from outside of the EEA). The UK Border Agency (UKBA) enforce the regulations and require employers to undertake checks on all new employees/workers to ensure they are eligible to work in the UK. This must be done prior to their commencement in the post and failure to do so can lead to the loss of the immigration sponsorship licence which would prevent the University from employing or enrolling any non EEA staff or students. It is also a requirement to retain copies of relevant qualifications.
Please refer to the full guidance and process for undertaking these checks.
When, and to whom, should I submit the forms?
The New Starter Form Taxable Fees must be completed before the work has been undertaken and this should be forwarded to Human Resources (HR Divisional Support Team)
Human Resources - Rowan House, Mountjoy Centre, Stockton Road Durham DH1 3LE
The on-line Taxable Fees Payments Form should be completed and approved by the 11th of the month for payment at the end of that month.
Any hardcopy Taxable Fees Payments Form must be received in HR by the 10th of the month for payment at the end of that month. These should be sent to Human Resources (HR Information Systems Team, University Office).
Any forms received after these dates will not be processed until the following month. Please make the worker aware of this.
Which sections of the form must be completed?
The New Starter Form Taxable Fees Page 1 must be completed by the Manager and Pages 2 and 3 by the worker.
The on-line Taxable Fees Payments Form can be completed by either the worker or the local finance administrator once the work has been undertaken but the form must be approved by an authorised signatory within the department that is making the payment. The Finance Department holds a list of authorised signatories. If you need to add a new employee to the authorised signatory list, please complete the Notification of Authorised Signatory Change form and return to the Finance Department.
What if a worker does not have a National Insurance number?
If the worker does not yet have a National Insurance number, a temporary number will be set up by Payroll to ensure no delay in payment.
The worker should request a National Insurance number by contacting HM Revenue and Customs on 0845 915 7006.
Bank Accounts
The Taxable Fees Payments form should only be used for payments to be made into bank accounts or building societies in the UK. For payments to non-UK accounts please contact Jonathan Snaith on 46971 or jonathan.snaith@durham.ac.uk
Further information
If you have any queries about the payment of fees please contact Jonathan Snaith, in Payroll on 46971 or jonathan.snaith@durham.ac.uk
If you have any queries concerning the setting up of Fees new starters, please contact the Divisional Support Team in HR.
Divisional Support Team
Carolyn Loughlin on 46510 or carolyn.loughlin@durham.ac.uk (Colleges Division, Registrar's/Treasurers Division & Arts & Humanities)
Paula Christon on 46514 or paula.christon@durham.ac.uk (Faculty of Science)
Kirsten Shale on 46512 or kirsten.shale@durham.ac.uk (Faculty of Social Sciences & Health and Durham University Business School)
If you have any queries about using the online form please contact the ducas.servicedesk@durham.ac.uk .