Disabilities & Dyslexia Service
1-1 Tutor & Employment issues Information Sheet for Students
1-1 dyslexia/dyspraxia support tutors work directly for the person who has engaged them to provide support. If you engage a 1-1 dyslexia/dyspraxia support tutor you are responsible for finding out whether they are employed or self-employed. If your dyslexia/dyspraxia support tutor is not classed as Self-Employed, you will be legally responsible for deducting tax and National Insurance contributions. You will need to deduct this from their wages and pay it over to the Tax Office.
How will I know if my dyslexia/dyspraxia support tutor is selfemployed?
The dyslexia/dyspraxia support tutor will be registered as self-employed with HM Revenue & Customs. Ask your dyslexia/dyspraxia support tutor to provide you with a copy of the letter stating his/her registration. You may also wish to confirm this with the relevant Tax Office. You will need the dyslexia/dyspraxia support tutor’s written permission for this information to be disclosed to you by the Tax Office. If your dyslexia/dyspraxia support tutor is self-employed, they will be responsible for their own tax and National Insurance contributions and you will not have to become involved with this.
Extract from SKILL: Employing Support Workers in HE (a guide for students) pp.44-45
People who are ‘self-employed’ are responsible for their own tax and National Insurance. They are not covered by employment legislation and so don’t have a right to things like Statutory Sick Pay and Statutory Maternity Pay. If your University does not employ your support workers, you may wish to use selfemployed workers so that you do not have to make arrangements for tax and National Insurance. However, it is not up to your support worker to decide if they are self-employed. This decision is up to the Inland Revenue for issues relating to tax and National Insurance and up to an employment tribunal for issues relating to employment law. The decision about whether a person is self-employed or not is made by looking at what the job involves. If the worker is under their own direction while at work they are self-employed. If they are under the employer’s direction, they are not. If the worker has regular payments this may indicate that they are employed. However, if they are paid by the job then this may indicate that they are self-employed. If you have a support worker who works exclusively for you, it is unlikely that they will be given self-employed status. It is important that you check this with your local tax office. Even if your support
worker signs a declaration that they are self-employed, this may not protect you if the Inland Revenue denies them self-employed status.”
Responsibilities for employing dyslexia/dyspraxia support tutors if they are not self-employed
If your dyslexia/dyspraxia support tutor is not self-employed, and you engage them to provide support to help you complete your studies, you will legally be treated as their employer. If you engage an dyslexia/dyspraxia support tutor, you will be responsible for ensuring that Income Tax and National Insurance Contributions are deducted and paid over to HM Revenue & Customs. How will I know if I have to deduct tax? You should always contact your local HM Revenues & Customs office for information to confirm whether or not you are to act as an employer. It is your responsibility to find out whether you are legally responsible. Contact details are: Internet: www.hmrc.gov.uk/employers Telephone: 0845 6 070 143 (Mon-Fri 8am-8pm) and Sat-Sun, 8am-5pm. If HM Revenue & Customs decide that you do need to deduct tax, they will send you all the appropriate documentation. They have recently introduced a Simplified Deduction Scheme for Employers, which makes it much easier than in previous years to calculate Tax and NIC deductions. The following may act as a guide to the types of information you could be expected to provide: Extract from the DFES’s 2008/9 HE Student Finance: Disabled Students’ Allowances (Section 98-99 and 108-109) Please note that dyslexia/dyspraxia support tutors are referred to as Non-Medical Helper(s) throughout. If non-medical helpers earn more than the National Insurance lower earnings limit of £90 (2008/09) per week issues arise relating to the employment of the non-medical helper and pay records will need to be submitted to HM Revenue & Customs (HMRC). In the tax year 2008/09, Class 1 national insurance contributions (NIC) are payable by the employer and the employee when the employee earns £105 per week or more. Employee’s national insurance contributions are 11% of weekly earnings between £105 and £770. Employer’s contribution is 12.8% on earnings above £105 per week. Non-medical helpers pay income tax on earnings over and above £5,435 (2008/09) per annum but may have to pay tax on earnings below this level if, for example, they have
other employment earnings which combined takes their earnings above the threshold. The employers of non-medical helpers are responsible for calculating the amount of tax and national insurance, deducting it from the employee’s wages and making payments to HMRC. Employers may also be required to pay Employer’s National Insurance contributions. This will be in addition to the gross pay paid to the non-medical helper and therefore needs to be taken into account when agreeing how much the helper will be paid. Non-medical helpers have certain other employment rights regardless of how much they earn. These rights are: itemised pay statements; time off for public duties; basic maternity leave for women; basic paternity leave for men; not be discriminated against on grounds of sex, race or disability; not to be victimised for trade union membership; and paid holiday entitlements. The Department for Business, Enterprise and Regulatory Reform (formally Department for Trade and Industry) provides information on the individual rights of employees. This information may be accessed through the website at: http://www.berr.gov.uk/employment/.
Annual Leave From 1st October 2007 the Working Time Regulations changed to allow full time workers 4.8 weeks paid annual leave (24 days if working a 5 day week). This figure will increase to 5.6 weeks (28 days if working a 5 day week) from 1st April 2009, pro-rata for those working part-time. For example, if a nonmedical helper works 5 days per week, annual leave entitlement is 24 days a year from 1st October 2007, increasing to 28 days a year from 1st April 2009. If the non-medical helper works 2 days per week the annual leave entitlement is 8 days per year. See Department for Business, Enterprise and Regulatory Reform (formerly DTI) website: http://www.berr.gov.uk/employment/holidays/index.html. The entitlement begins on the first day of employment. The amount of leave accrues monthly at the rate of one-twelfth of the annual entitlement each month. When the calculation does not result in an exact number of days, the amount of leave is rounded up to the next half day. For example, a worker who works 5 days per week would have accrued 6 days annual leave after 3 months (24 divide by 12 x 3), or 7 days annual leave after 3 months (28 divided by 12 x 3).
If you are deducting tax and NIC from your dyslexia/dyspraxia support tutors pay, you may also be liable to pay Employer’s Liability Insurance. Information on this can be obtained from the Health & Safety Executive on www.hse.gov.uk/
A user-friendly Employer’s kit giving guidance on how to become an employer is available from the National Centre for Independent Living at: www.ncil.org.uk/employers_kit. This kit provides example documentation and guidance on how to complete HM Revenue & Customs forms. Other sources of information: National Centre for Independent Living 250 Kennington Lane London SE11 5RD Telephone: 020 7587 1663 Fax: 020 7582 2469 Textphone: 020 7587 1177 Email: ncil.@ncil.demon.co.uk Web@ www.ncil.org.uk Skill: National Bureau for Students with Disabilities Chapter House 18-20 Crucifix Lane London SE1 3JW Telephone: 0800 328 5050 Text: 0800 068 2422 Email: firstname.lastname@example.org Web: www.skill.org.uk Citizens Advice Bureau See Yellow Pages for local office Web: www.citizensadvice.org.uk