People on student visas cannot be self-employed so any consultancy cannot be done as personal consultancy through OUI as you would have to register as self-employed. It may be possible for you to be employed by a University Department to do the work – you would need to speak to the department as well as the University’s Staff Immigration Team.

Yes. It is an offence under the Immigration Act 2016 to work, including under a contract for services, if the person has no permission to be in the UK or is in the UK subject to a condition prohibiting doing work of that kind.  It is your responsibility to ensure that you have at all times the right to do the work which you are providing under a contract with OUI.

Any questions concerning right to work or visa conditions should be directed to the University’s Staff Immigration Team.

We contract with the external client and then ask you, as the consultant, to sign a standard back-to-back agreement with us confirming that you will provide the services that we are offering to the client and agree to be bound by the terms and conditions of that contract.

We structure the contracts we have with our clients to ensure that, except in the unlikely event of fraud or willful misconduct, any legal action taken by clients is brought against us and not the consultant personally.

Possibly. Please contact us without delay. While it may not be possible to re-negotiate any fees that you may have already indicated would be acceptable, it is usually possible for us to put in place a protective contract that limits your liability and will allow you to be covered by our insurance policies.

Unfortunately, we are unable to help you recover fees from work done under a contract to which we are not a party.

When you are being paid by a client to undertake some work for them, it always best to agree the terms and conditions of the engagement prior to beginning the project, otherwise you may, albeit inadvertently, find yourself taking on responsibilities and liabilities that were not anticipated. We can advise on these matters.

This will depend on a number of factors including the nature of the work, the type of client, the time frame in which the client wishes you to operate, your motivations for doing the work; whether, or not, you are uniquely able to provide the advice the client is seeking.

Our Consulting Services team negotiates more than 400 contracts a year so we have considerable experience of ‘going rates’ for particular types of consultancy. Your project manager will be able to discuss with you what is appropriate in the particular circumstances of the project.

Oxford University Innovation’s Consulting Services team is the University’s preferred and official route because we aim to protect both the interests of the individual consultant and the University. If you don’t use us you are recommended to take legal advice and have your own insurance to protect yourself from direct action by the client and/or a third party claim. Whether or not you use our services, approval to hold the outside appointment must be sought through the University’s OA1 system.

In most cases, yes. We pay our consultants direct as self-employed consultants. The Staff Immigration Team in the University’s Personnel Services has confirmation from the Home Office that supplementary employment under a Skiller Worker visa does allow for self-employment provided the normal requirements for the work to qualify as supplementary are met.

The qualifying criteria are:

1) that the work is of the same type (or is a job which is on the Home Office’s shortage occupation list) and at the same professional level as the Tier 2 visa holder’s main role; and

2) the supplementary work cannot exceed 20 hours per week; and

3) the supplementary work should be outside the working hours of, and not interfere with, the main role.

Consultancy projects handled through us would typically meet these criteria since engagements will be professional, in the same business sector, outside normal working hours and less than 20 hours per week.

Any queries should be raised with the University’s Staff Immigration Team

From https://commonslibrary.parliament.uk/research-briefings/sn05976/

The term ‘personal service company’ (PSC) is not defined in law, but is usually taken to mean a limited company, the sole or main shareholder of which is also its director, who, instead of working directly for clients, or taking up employment with other businesses, operates through their own company. For any engagement the client will pay the PSC for the individual’s services without first deducting income tax or employee National Insurance contributions (NICs) as it would for any employee under PAYE.

There are several possible tax advantages to this type of arrangement for the individual, further to the wider potential benefits from freelancing.  First, the range of expenses which the PSC may set against its taxable profits will be much wider than that allowed an employee to set against their taxable income.  Second, there will be a cash-flow benefit in avoiding tax being deducted at source each month.  Third, the individual may be in a position to be paid dividends by their PSC, as an alternative to only being paid earnings as the PSC’s employee, and this form of income would not be subject to NICs.

————————–

OUI will engage with PSCs in consultancy agreements instead of an individual provided the PSC has a sole (or main) shareholder who is a staff member of the university and that person is also its director.

The IR35/“off-payroll working” rules seek to ensure that persons performing services to clients via their personal service company (PSC), who would have been taxed as an employee if they were providing their services directly to the client, pay broadly the same tax and national insurance contributions (NICs) as employees.

From 6 April 2021, OUI Clients that are medium or large companies and that use Consultants who work through a Personal Services Company (PSC) will be required to determine the tax status of the relationship between them and the PSC under the off-payroll worker rules. If a Client decides that the relationship falls inside the IR35 system, they will then be responsible for providing a status determination statement (SDS) to the PSC and to OUI as agent. If the Client determines that the consultancy contract falls inside IR35, OUI must operate PAYE on payments to the PSC.

The IR35 changes only apply where the Client is either a medium or large company and only affect those Consultants working through a Personal Services Company (PSC). So, provided the Client is deemed to be a small company, the IR35 changes being made as of April 2021 will not currently apply. If the Client is either a medium or large company, and you are working via OUI through a PSC, IR35 could apply to you and if a Status Determination Statement (SDS) is issued by the Client determining that the consultancy contract falls inside of IR35, OUI will be obliged to pay you through PAYE.

No, the changes to the IR35 rules do not affect Consultants who work through OUI but are not are not operating through a PSC. Rules relating to employment status remain whereby an individual who is considered to be providing services as an employee is taxed as such.

Only large and medium sized companies. “Small” companies are not currently required to comply with the new IR35 rules. Clients will determine whether or not they qualify as small for these purposes. Broadly, Clients will not be “small” unless at least two of the following are satisfied:
1. it has a turnover of not more than £10.2 million;
2. it has a balance sheet total of not more than £5.1 million; and/or
3. it has no more than 50 employees.
In some circumstances, it may be necessary to determine if these conditions are met by reference to the size of shareholders within the Client company. If the Client is in any doubt as to whether or not it is a small company, legal/ tax advice should be sought.

OUI will need to account for income tax and national insurance contributions on a sum calculated as set out in below. Note: The SDS will only apply to services provided from 6 April 2021.
The relevant amount to be processed through PAYE is the total amount stated on the Consultant’s self-billing invoice for their Personal Services Company (PSC), less the VAT (if any) charged by the PSC on the fees and any permitted deductions for amounts which represent a direct cost to the PSC for any materials used, or to be used, in the performance of the services; and amounts that represent expenses met by the PSC that would have been deductible from any earnings of employment had the person been employed directly by the Client. As OUI does not have knowledge of any relevant amounts, OUI can only deduct these amounts from the Consultant’s self-billing invoice if the PSC provides OUI with documentary evidence of the sums and confirmation as to why the PSC believes them to be deductible. Should such evidence not be received by OUI by a date provided to the PSC to do so, no deduction will be made, except in relation to VAT. OUI will not be obliged to make any deductions unless it is satisfied with the evidence provided.

Note: OUI will, in addition to the above, be liable to account for employer NICs to HMRC. This will require OUI to enter into a contractual amendment with the Client to ensure that OUI can charge an amount equivalent to the employer NICs as part of the Fee.

The IR35 changes only apply to medium and large companies and only affect those Consultants working through a Personal Services Company (PSC). So, provided the spinout is deemed to be a small company, the IR35 changes will not apply. If the spinout is either a medium or large company, and you are working via OUI through a PSC, IR35 will apply to you and if a Status Determination Statement (SDS) is issued by the Client determining that the consultancy contract falls inside of IR35, OUI will be obliged to pay you through PAYE.

Note: OUI will, in addition to the above, be liable to account for employer NICs to HMRC. This will require OUI to enter into a contractual amendment with the Client to ensure that OUI can charge an amount equivalent to the employer NICs as part of the Fee.

If you are working through a Personal Services Company (PSC), i.e. OUI contracts with your PSC rather than you as a self-employed individual, a Client may determine that the consultancy contract falls inside HMRC’s IR35 off-payroll working rules and issue a Status Determination Statement (SDS) stating this. Where the SDS confirms that the arrangement falls inside of IR35, OUI will be required to process your payments via PAYE. If this happens, OUI will deduct income tax and employee NI from your consulting fee (net of expenses). Any VAT charged on the Self-billing invoice will still be payable by OUI to the PSC.

Note: OUI will, in addition to the above, be liable to account for employer NICs to HMRC. This will require OUI to enter into a contractual amendment with the Client to ensure that OUI can charge an amount equivalent to the employer NICs as part of the Fee.

Our consultants are treated as self-employed for the purpose of tax and not paid through PAYE. While we do not need to tell HMRC, you need to register as self-employed and declare your consultancy income to HMRC for tax and NI through Self-Assessment.

People on student visas cannot be self-employed so any consultancy cannot be done as personal consultancy through OUI as you would have to register as self-employed. It may be possible for you to be employed by a University Department to do the work – you would need to speak to the department as well as the University’s Staff Immigration Team.

Yes. It is an offence under the Immigration Act 2016 to work, including under a contract for services, if the person has no permission to be in the UK or is in the UK subject to a condition prohibiting doing work of that kind.  It is your responsibility to ensure that you have at all times the right to do the work which you are providing under a contract with OUI.

Any questions concerning right to work or visa conditions should be directed to the University’s Staff Immigration Team.

We pay fees for personal consultancy directly to you and without deduction of tax or NI. You are responsible for declaring this income for tax/NI and HMRC advise that consultants should register to be self-employed for this activity. Information on how to register can be found on the HMRC website.

Yes, it is essential.  It is your responsibility to register with HMRC as self-employed. Registering with HMRC is a straightforward process and all the information required, including help lines, is on the HMRC website. You can also look at Register for Self Assessment: Register if you’re self-employed – GOV.UK (www.gov.uk)

You should allow 10 working days for the registration process (21 days if applying from abroad).

HMRC will not accept a registration for self-employment more than 28 days before the work commences.

It depends. Individuals earning in excess of the VAT registration limit (£85,000 in tax year ending 2019) in a tax year via self-employed sources need to register for VAT.

If academic consultants decide/are required to become VAT registered, VAT will be charged on the cost of the consultancy. OUI will then make payment inclusive of VAT to the academic consultant under the usual terms and conditions of payment.

If academic consultants are VAT registered, they must inform us so that we can take account of it in the ‘self-billing’ arrangements; provide their VAT number to us and let us know of any change in their circumstances.

No. We have the contract and financial relationship with the client and are responsible for invoicing for the work. Please do let us know as soon as the work is done, or on a monthly basis as agreed with your Project Manager. We can provide a template time sheet for you to record hours worked and/or expenses.

You will need to have an invoice showing the income received from self-employment activities for your HMRC records. To make this easier for you, we will do this on your behalf under a ‘self-billing’ arrangement and will send you a copy to retain. You will, of course, need to let us know of any changes to your circumstances (eg name, address, bank details, VAT status & registration number if appropriate) to ensure that the invoices we raise for you are correct. These details will be included on your invoice.

As HMRC rules regarding self-billing require parties to consent to the arrangement, a clause requesting such consent is contained within the standard back to back agreement that you sign with us.

If you would prefer to decline the offer to ‘self-bill’ and create the invoices yourself, you will be able to do so when you contract with us. We can supply you with an invoice/timesheet template which you can complete yourself and email to us.

Once payment is received from the client, the consultant is added to our next payment run. These happen regularly, usually twice a month (except in August and December when one only occurs).

To enable payment to consultants, we need to hold their personal bank account details and these will be shown on your ‘self-billing’ invoice.

Please be aware that when working with new clients, there may be a small delay on the first payment, as the client needs to add us as a supplier in their payment system. This is usually rectified once we are established with the client.

No, for legal reasons, it is not possible for either us, or the University, to offer individuals financial/tax advice. Direct payment requires consultants to consider whether they need to seek independent professional advice in managing their tax and compliance obligations. The following companies could provide assistance:

James Cowper LLP
www.jamescowperkreston.co.uk

Shaw Gibbs
www.shawgibbs.com

Critchleys
www.critchleys.co.uk

Grant Thornton
www.grantthornton.co.uk

Yes, this is possible provided that we know at the start of the project that this is what you wish to happen. If you wish your fees to go to the department, we will put in place a ‘departmental consultancy’ contract with the client stating that we will sub-contract the services to the department who will in turn make you available to do the work. By doing it this way, we do not create a personal tax liability for you.

Note however that those funds disbursed to a department must not be subsequently used by you for personal gain, otherwise, this may again create a tax liability. If giving fees to your department is something that interests you, please be sure to discuss this as soon as possible with your project manager.

We have taken professional advice on how consultants should handle tax and national insurance and HMRC have indicated that employees of the University who wish to undertake personal consultancy outside of their University employment should register as self-employed and declare their consultancy income to HMRC for tax and NI through Self-Assessment.

We are not authorised to provide financial advice, but information on registering as self-employed is on the HMRC website.

No, in the overwhelming majority of cases we will pay you direct as a self-employed consultant. A few years ago we asked our registered consultants whether they preferred to be paid through payroll or direct as self-employed consultants. The majority of respondents said they preferred to be paid direct and so we adjusted our contracts and administrative systems accordingly.

There are some rare instances where our services must be operated via University payroll. We will notify you of these and the reasons why before payment is made.

Information on registering with HMRC can be found on the HMRC website. For specific details on registering as self-employed, check Register for Self Assessment: Register if you’re self-employed – GOV.UK (www.gov.uk)

In most cases, yes. We pay our consultants direct as self-employed consultants. The Staff Immigration Team in the University’s Personnel Services has confirmation from the Home Office that supplementary employment under a Skiller Worker visa does allow for self-employment provided the normal requirements for the work to qualify as supplementary are met.

The qualifying criteria are:

1) that the work is of the same type (or is a job which is on the Home Office’s shortage occupation list) and at the same professional level as the Tier 2 visa holder’s main role; and

2) the supplementary work cannot exceed 20 hours per week; and

3) the supplementary work should be outside the working hours of, and not interfere with, the main role.

Consultancy projects handled through us would typically meet these criteria since engagements will be professional, in the same business sector, outside normal working hours and less than 20 hours per week.

Any queries should be raised with the University’s Staff Immigration Team

Yes. The University’s consultancy policy and procedures formally states:

“Staff who are founders or directors of spin-outs are required to use Oxford University Innovation’s Consulting Services for managing consultancies to their spin-outs in the first year following formation of the spin-out. After that 12 month period, staff may choose to continue to consult through us or to consult privately/independently.”

In order to cover some of our operating costs, the University asks us to deduct a management fee from the price we charge our external clients. This is 10% of the fees OUI invoices its external client.  Authorised expenses invoiced by us on your behalf attract no deduction.

Yes, if you are providing advice and expertise to the client in return for a fee (or some other consideration), this is consultancy and should be handled as such with a contract explaining the terms and conditions of the engagement.

Yes, but only with the proper permissions, including that of your head of department. In addition, a charge should be made to the client to cover the cost of the use of such facilities.

We can advise you on such matters and will work with you, the department administration team and the client to agree the appropriate costs.

The term ‘academic consultancy’ covers a wide spectrum of activities. At its simplest it is any advice or expertise that you provide to a client in return for a fee should be considered consultancy.

Such activities include: discrete problem solving, writing technical reports, expert witness work, workshops on the state of the art, horizon scanning, and scientific or clinical advisory boards.

Clients may also seek technical services using departmental equipment or facilities, eg testing & analysis, alongside consultancy. We can work with you and the department to arrange for this to be an integrated part of the consultancy services you provide to the client and this is another good reason to work through our consulting services.

Yes, we can – this can be for testing and analysis of samples sent in by clients, use of equipment and facilities by external organisation, or as part of a larger consultancy project. We are currently working on a searchable database of facilities and equipment which will be launched in 2024.

People on student visas cannot be self-employed so any consultancy cannot be done as personal consultancy through OUI as you would have to register as self-employed. It may be possible for you to be employed by a University Department to do the work – you would need to speak to the department as well as the University’s Staff Immigration Team.

It depends on the nature of the project and who the client is. If a client is prepared to accept our standard terms and conditions, an agreement can be put in place in a day. If the client insists on us negotiating from their contract or, perhaps, there are several parties working together to deliver the project, it will take longer.

However, we often work with the same client on different projects, so we may have an agreed form of words that can be easily modified and this can save a lot of time. Please contact us to discuss how we can help.

We aim to take the stress out of doing consultancy by managing the legal, financial and other administrative aspects, leaving you free to focus on the intellectual challenges – the consultancy project itself.

Specifically, we will negotiate and put in place the contract, protecting your interests and those of the University. We will:

• guide you through the internal approvals process

• invoice the client, chase debt and disburse funds

• cover you with professional indemnity insurance

• be available to advise you at every step

Yes. Whilst most clients are reluctant to have us share the details of their consultancy projects with Oxford consultants, a number have agreed that we can provide brief summaries which are linked from some of our showcases. Please also see our divisional brochures which have some examples of our consultancy projects.

Most people who use us do so over and over again, indicating a high level of satisfaction. Here are just a few of the positive comments from academics who use our services:

“I have  been very impressed with the prompt and professional way in which Oxford University Innovation’s Consulting Services team handles consultancy work. They have been great at handling existing work, introducing new contacts, and in handling all the essential paperwork,”  said Professor Peter Ireland, Head of Thermofluid and Turbo Machinery Group, Department of Engineering Science.

We manage for the NAO, an independent academic review of their Value for Money reports. Anthony Heath, Emeritus Professor of Sociology, comments on the work: “We have had various beneficial effects on the NAO itself, and its methods, for conducting VFM reports. Of all the government work that I have done, this is probably the work that has had the most direct positive impact.”

We also undertake regular surveys of both our clients and our consultants to get feedback on the service that we provide. Some testimonials can be found in our divisional brochures.

No. Research Services are only able to support staff with research engagements and are unable to provide advice on consultancy. RS re-directs consultancy enquiries to us, in the same way as we re-direct research enquiries to RS.

The University’s Consultancy Policy & Procedures can be found here

The University’s consulting policy states that staff who are founders or directors of spinouts are required to use OUI’s Consulting Services to manage consultancies to their spin-outs in the first year following its formation.

OUI recognises that innovation activities by staff may be seen by some as a distraction from core academic duties of teaching and research. From 1st August 2020, OUI has introduced a policy intended to provide departments with additional funds and to encourage their engagement and support for the spinout activities of their staff.

OUI will deduct its 10% management charge from founder consultancies to any spinout incorporated on or after 1st August 2020. In the first year of these founder consultancies, OUI will distribute a sum equivalent to the 10% management charge to a cost centre at the department to which the consultant is primarily affiliated. The departmental administrator nominates the cost centre into which these funds are distributed and such payments are accounted by OUI on a quarterly basis. If such founder consultancies are extended into a second or subsequent year through OUI, OUI will continue to deduct its 10% management charge (as normal) but distribute a sum equal to half that management charge to the nominated departmental cost centre for the duration of each founder consultancy.

Yes, any employee of the University or a college can use Consulting Services to manage their consultancy activities.

In most cases, yes. We pay our consultants direct as self-employed consultants. The Staff Immigration Team in the University’s Personnel Services has confirmation from the Home Office that supplementary employment under a Skiller Worker visa does allow for self-employment provided the normal requirements for the work to qualify as supplementary are met.

The qualifying criteria are:

1) that the work is of the same type (or is a job which is on the Home Office’s shortage occupation list) and at the same professional level as the Tier 2 visa holder’s main role; and

2) the supplementary work cannot exceed 20 hours per week; and

3) the supplementary work should be outside the working hours of, and not interfere with, the main role.

Consultancy projects handled through us would typically meet these criteria since engagements will be professional, in the same business sector, outside normal working hours and less than 20 hours per week.

Any queries should be raised with the University’s Staff Immigration Team

No. A staff member undertaking private/independent consulting (ie not through Consulting Services) is not covered by the University’s professional indemnity and public liability insurance, and will not be defended by the University in the event of a claim against the staff member related to that consulting activity.

However, a staff member electing to undertake work through Consulting Services is covered by the University’s professional indemnity and public liability insurance policies, subject to the current terms and conditions of those policies. They will also be defended by the University in the event of a claim against the staff member, provided they have lawfully, diligently, and conscientiously endeavoured to carry out the work.

Consultancy activity is likely to expose you to liabilities that you wouldn’t otherwise encounter in your academic life and so it is advisable to have appropriate professional indemnity insurance cover. If you work through us we will provide you with this cover.

Yes. Staff undertaking consultancy need to seek permission from their head of department using the University’s OA1 approval form. When you work through us we will guide you through the approvals process.

Yes, you are required to seek permission to ensure the outside appointment does not conflict with your role at the University.

Yes. The University’s consultancy policy and procedures formally states:

“Staff who are founders or directors of spin-outs are required to use Oxford University Innovation’s Consulting Services for managing consultancies to their spin-outs in the first year following formation of the spin-out. After that 12 month period, staff may choose to continue to consult through us or to consult privately/independently.”