Externally provided workforce

It is our responsibility to assess whether the IR35 Intermediaries Tax legislation applies to each and every engagement. Failure to comply can result in large fines from HMRC.

The outcome of this assessment then affects how the externally provided workforce's (EPW) tax and National Insurance (NI) contributions are collected and sent to HMRC.

Managers should undertake the assessment using the HMRC tool.

Check employment status for tax - GOV.UK (www.gov.uk)

Whatever, the outcome of the assessment, the agency and the engaged individual must be informed about the IR status of the engagement by completing and issuing the Status determination statement.

If IR35 applies

If the IR35 legislation does apply then:

• if engaged through an agency, then the agency collects the tax and NI 
• if self-employed through their own personal service Ltd company then they send their invoice into payroll and the council collects and sends the tax and NI contributions and send them direct to HMRC. The rest of the invoice is then paid through accounts payable as before. We will need official notification from tax office about their tax code and their NI number

If IR35 doesn't apply

If the legislation does not apply then it is the responsibility of the individual to pay their own tax and NI contributions.

Grades 1 to 18

The engaging manager contacts the providers on all roles.

Provider: Randstad
Telephone: 0191 211 1382

Please complete the “Requirements of the role” part of the business case including the IR35 intermediaries’ tax assessment and the Status determination statement. 

As well as completing all the checks details in the manager's checklist, they will also undertake the Voluntary Redundancy and Compulsory Redundancy (VR/CR) screening ensuring that no former employees of the council who left on VR or CR within specified times are engaged. Randstad or the selected agency will provide the hiring manager with CV’s of applicants who meet their criteria. 

Once the hiring manager has selected the preferred applicant they will need to advise the agency. The agency will then liaise with the individual regarding start dates etc. Please note a Randstad worker will not be released until a purchase order number is confirmed via the HR Admin team.

The individual’s NI number will also be required as it will be used as a unique identifier for iTrent and E-Procurement.

Where Randstad is the provider they will advise the hiring manager which e-procurement item code to choose from the catalogue (for example, C500A for Cumberland). 

Where a procurement process is not being followed and engagements made “off contract” the council is vulnerable to challenge and/or fines (can be £20,000 plus) and also increased costs.

Interims (grade 19 or specific specialist roles) 

The agencies will require the information as detailed above. 

Contact The Procurement and Contract Management Team for further advice.

The Procurement and Contract Management Team (CPCM)
Email: procurement.mailbox@cumbria.gov.uk

Hiring managers will need to ensure the agency checks that an individual has not left the Council under Voluntary Redundancy or Compulsory Redundancy.

Interim Directors and Assistant Directors

The HR team will provide support and advice to this process.  

The hiring manager must complete an Externally Provided Worker ticket on the HR Admin team portal. Click on the link below.  The nominal code for all third party providers will be 17610, this will be required for budget purposes on E-procurement. 

To input the information onto the HR Admin team Portal us the Service Catalog - People Management Portal (service-now.com)

Attach the IR35 assessment and the completed Status Determination Statement.

Please note that individuals have the right to appeal the IR35 assessment decision. If they wish to do this then they should write to the Senior Manager, HR/OD.

The HR Admin team will then raise a purchase order on E-Procurement. 

If the requisition for the work undertaken is less than £100,000 an order will be sent direct to the agency.  If the requisition is over £100,000 it will be passed to the engaging manager for authorisation before being sent to the agency.

On the rare occasion where engagement is on a self-employed basis a contract for services will be issued by the HR Admin team. The nominal code for self-employed consultants is 32826. Managers will also need to check that the self-employed person has the correct insurances.

 Check insurances and manager's checklist

The manager's checklist details what you need to check if you're not using an approved provider.