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Employment Status Service (ESS)

IR35 Legislation - What it means to us...

Inland Revenue rule IR35 is the United Kingdoms anti avoidance tax legislation designed to tax "disguised employment" at a rate similar to employment.

From 6th April 2017 reform of the IR35 off-payroll working rules will change for public sector organisations by transferring responsibility for determining and paying the correct tax to the body paying the worker's company (UoL!)

We are required to determine when IR35 applies and make relevant deduction where it applies.

Determining Employment Status

This page and the attached documents below explain the employment status groups for individuals working at the University. They also tell you how employment status is determined.

There are three employment groups determined by employment law; employee, worker or self employed. 

An individual providing work activities for the University will fall within one of these employment groups.

The appropriate employment status group will depend on the working relationship between the University and the individual.  Points to consider include:     

1. Is there is a contract between the University and the individual?

2. Does the individual need to provide services personally?

3. The degree of control over the service provided: who decides when and how the work is done?

4. Is there is a ‘mutuality of obligation’ on behalf of the University or the individual, i.e. whether work has to be offered and carried out.

To determine if someone is self employed, an HMRC Employment Service Status (ESS) tool check needs to be completed to determine their IR35 status.

It is imperative that a check is carried out BEFORE any engagement is agreed.

Related downloads

IR35 Process Flow Chart

ESS Tool - To determine IR35 status

Guidelines for Determining Types of Employment Relationships

Employment Status Guidelines for Sole Traders

IR35 Checklist - To be completed in advance of each engagement

Frequently Asked Questions 

IR35 and Overseas Work Payment Form

IR35 Exempt Payment Form

IR35 HR and Purchasing Contacts