6.2 Taxation
6.2.1 Introduction
The aspects of taxation covered in this section are Income Tax (PAYE), Schedule D (in relation to academic fees and sub-contractors payments), covenants, Value Added Tax (VAT), and other taxes.
6.2.2 Scope of Taxation and Responsibility of Staff
The scope of taxation is complex and extensive. A manual of this nature can only give a general guide. Staff involved in areas subject to taxation must ensure that they are aware of the statutory requirements and adhere to them.
It should be noted that where a member of staff has failed to pass a payment for remuneration through the Payroll section, the Inland Revenue or other Government Department may hold the College (as employers) liable for the tax which should have been deducted from the employee's or contractor's pay.
6.2.3 Income Tax
As a general rule, all salaries and wages, emoluments and fees are taxable although the individual may not actually pay tax if his or her total earnings are small and covered by personal and other tax allowances.
For guidance on the engagement of consultants, visiting speakers and visiting tutors see section 4.5.12.
All payments for labour, secretarial work, lecturing fees, examiners fees are treated as payroll expenditure.
6.2.4 Gift Aid
Gift Aid forms and information about Gift Aid can be found at Giving to Goldsmiths.
6.2.5 Sub-contractors
All spending departments which employ independent contract labour should be aware that, in certain circumstances, a "sub-contractor" may be subject to deduction of income tax on the invoices submitted unless proof of exemption is provided. See section 4.2.9.
6.2.6 Value Added Tax (VAT)
There are special rules applicable to institutions of higher education. Here again, the subject is complex and too detailed to be covered fully in this manual.
The majority of the College’s income is exempt or outside the scope of VAT. However, income from consultancy, lettings, catering and other services not related to the supply of education is subject to VAT. Our largely exempt income prevents us claiming any substantial repayment of VAT incurred on expenditure.
6.3 Insurances
6.3.1 Introduction
All insurances of the College are under the direction and control of the Head of Purchasing. Heads of Departments must ensure that the Head of Purchasing is notified immediately of all new risks and additional property and equipment which require to be insured, the apparent amount of cover required and any alterations affecting existing risks or insurance. If in doubt, Heads of Departments should seek advice from the Head of Purchasing.
6.3.2 Review of Insurances
The Head of Purchasing must take steps to insure adequately all risks which the College may face and must keep such risks under constant review in consultation with Heads of Departments.
6.3.3 Records Kept
The Head of Purchasing must keep a record of all College insurances and the properties and risks covered.
6.3.4 Notification of Incident or Loss
Heads of Departments must advise the Head of Purchasing of any incident or loss which may give rise to an insurance claim. The procedures are set out in A Guide To Claims Procedures.
6.3.5 Admission of Liability
Heads of Departments and their staff should make no written or oral admission of liability for any potential loss or injury resulting to College property or staff or other third parties.
6.3.6 Inspection of Engineering Plant
Each Head of Department having engineering or other similar plant under his or her control must keep suitable records to ensure that the inspection of such plant is carried out within the period prescribed by the insurance cover. In the event of any failure by the insurance company to carry out inspections during the prescribed period, the Head of Purchasing should be notified immediately.