2. Status and Responsibilities

See also:

2.2 Responsibilities for tax matters

(a) HM Revenue and Customs

 

The University's relationship with HMRC is managed by the Finance Division: any discussions with HMRC concerning the University's tax policies will be conducted by the Finance Division.

Note: Staff are requested not to contact HMRC directly concerning the contents and intentions of this document unless specifically advised to do so by a member of the Finance Division.

(b) Personal taxation

Individuals are responsible for the administration of their own tax affairs, including the maintenance of detailed records about income and gains. An introduction to income tax is provided on the HMRC website.

It is the responsibility of each individual to report to HMRC all untaxed income, gains and deductions, or to arrange for an accountant to do so on their behalf.

The University is required to record and deduct income tax and / or National Insurance from all payments to individuals, unless there is a specific exemption allowing a ‘gross’ payment to be made.

For individuals on the payroll, the University will also apply and operate tax codes and allowances as advised by HMRC.

At the end of each tax year, the University will prepare statements in respect of all payments to individuals that were either taxed at source (the P60), were paid without deduction of tax ('section 16 return'), or were paid expenses and benefits not entitled to tax relief (the P11D).

For further advice on the application of income tax or National Insurance within the University, please contact the University Payroll Team in the first instance.

Please note that neither the University nor any of its officers can complete or advise upon the completion of Self Assessment Tax Returns, or offer advice on personal tax planning.

(c) Corporate taxation

Suppliers and other corporate bodies are responsible for the administration of detailed records in support of trading and other income, expenditure, gains and losses. An introduction to Corporation Tax and VAT is provided on the HMRC website.

The main transactional tax for the University in respect of non-payroll transactions is VAT. Each University department is required to review the accuracy of its VAT accounting on a monthly basis. Throughout the tax year the University is required to complete VAT returns.

At the end of each tax year, the University is also required to complete a Corporation Tax return to show that all income and expenditure has been in the furtherance of its charitable objectives (and any that is not is declared as taxable).

Note: For further advice and information on any aspect of corporate taxation, please refer to the University tax web pages.