Find an explanation of our terminology and information to support you in making the right, most efficient payment determination.
There are four different payment outcomes that can apply determined by the nature of the engagement between Queen Mary and the worker/supplier, in line with HMRC regulation, and not by their preference.
Queen Mary bespoke Internal online flowchart (via QM Connected). Guidance on payment route for individuals, sole traders, freelancers, small Ltd companies, personal service companies, intermediaries.
CEST stands for ‘Check Employment Status for Tax’. It is a HMRC tool which asks multiple-choice questions to determine employment status and produces a summary of your answers alongside an explanation of the outcome.
The accepted definition of a personal services company is a limited company that typically has a sole director, the contractor, who owns most or all the shares. A PSC is always an intermediary (see below).
A smaller limited company, where the worker doing the work for Queen Mary is also the owner/director and/or owns more than 5% of shares in the company. Or a partnership where the worker (alone or with one or more relatives) is entitled to 60 per cent or more of the profits of the partnership. Or working through another individual.
The hiring Queen Mary staff member who is responsible for identifying and agreeing the terms of engagement and payment route.
Is the named worker, engaged to complete the Queen Mary assignment/contract.
An individual operating under a business name. Able to prove operating as a business, working on a contract basis, with multiple clients and paid directly by the client.
An individual is paid WITHOUT a HR payroll contract in place. Specific rules apply. Tax and National Insurance ARE deducted by HR payroll.
When engaging a worker through an agency, and the worker is not an employee of that agency, the route to payment must still be determined (depending on worker's business type). The agency must be informed of the outcome of the route to payment assessment, before the start of the contract, because the agency is responsible for any income tax deductions. If not complied with, the liability is shifted back to Queen Mary.