Procedures for Consultancy Work updated
Changes to the University’s Procedures for Consultancy work have come into effect.
These changes have been agreed with the trade unions and are effective from 30 September 2017.
Recent changes to tax regulation mean that amendments were necessary to two key aspects of the payment process for consultancy work undertaken by staff members. The changes are necessary in order to:
- safeguard the University from increased financial and reputational risks that arise as a result of the introduction of the new Corporate Criminal Offence of ‘Failure to Prevent Tax Evasion’ from 30 September 2017
- strengthen overall compliance with both existing tax laws and proactively manage the University’s risk in relation to the legislative changes which came into effect on 30 September 2017.
What has changed?
A summary of the changes that have come into effect are:
- Payment process – if a member of staff wishes to forego all or part of their share of consultancy fee income in favour of their school, lab or centre account (which may be used for work-related spend), it will be necessary to complete and sign a legal ‘Deed of Waiver’. The waiver contains a section in which the member of staff can express a wish for the funds foregone to be credited to their school, lab or centre.
- The point at which a waiver must be signed is being fixed - where a staff member has decided to forego all or a part of their fee income, the deed of waiver must be completed and signed, on a contract by contract basis, and prior to the raising of an invoice by Edinburgh Innovations to the client for payment. Otherwise the share of fee income will be paid in full to the staff member via payroll.
- Payments to Ltd or personal service companies - such payments will not be permitted with effect from 30 September 2017. The balance of any personal fee income entitlement following the execution of a successful waiver will be paid to a staff member via payroll with deductions of tax (PAYE) and National Insurance Contributions (NIC). Where any staff member currently invoices Edinburgh Innovations via their Ltd company in respect of consultancy services, any and all payments made on or after 30 September 2017 will be made via payroll with normal salary.
The updated Consultancy Procedures document can be found below.