ESM4150 - Particular occupations: examiners - general

Tax

From 2014/15 these schemes should be operated under standard PAYE arrangements, however up to 2013/14 most fees paid by examining bodies were chargeable to tax as employment income. In the majority of cases, tax would be deducted from such fees under special arrangements negotiated centrally under Regulation 141 SI 2003 No. 2682(link is external). The PAYE Manual at PAYE70245(link is external) provides a list of the bodies previously covered by these special arrangements.

Other payments made by examining boards, which are chargeable to tax as employment income, are subject to PAYE in the normal way.

NICs

In accordance with Schedule 1, Regulation 2, Part II, Column (A)(6) of the Social Security (Categorisation of Earners) Regulations 1978 (SI 1978 No.1689), for NICs purposes, any person responsible for the conduct and administration of any examination leading to any certificate, diploma, degree, or professional qualification, whereby:

(a) they are engaged as an examiner, moderator or invigilator (or any similar capacity), or

(b) they are employed or engaged to set questions or tests for any such examination, and

(c) they are under contract where the whole of the work to be performed is to be done within less than twelve months,

will remain as self-employed earners for NICs purposes and will be entitled to pay voluntary Class 2 NICs (and must also continue paying special Class 4 NICs, where applicable)’.

However, the provisions at Schedule 1, Regulation 2, Part II, Column (A)(6) of the Social Security (Categorisation of Earners) Regulations 1978 (SI 1978 No.1689) will not apply if the provisions at Schedule 1, Regulation 2, Part 1 Column (A) 2 of the Social Security (Categorisation of Earners) Regulations 1978 (SI 1978 No.1689) are applicable and the provisions at Schedule 1, Regulation 2, Part I Column (B) 2(a) (b) or (c) of the Social Security (Categorisation of Earners) Regulations 1978 (SI 1978 No.1689) do not apply. This refers to arrangements involving a person who is providing their services to an end client under, or in consequence of, a contract between an Agency and the End Client.