5. Employment and Payment for Services

See also:

5.3 Royalties and giving up income

(a) Royalties and other income from Intellectual Property

The distribution of revenue generated through exploitation of the University's intellectual property, through the Research Services Office, Oxford University Innovation, or any other source, is governed by tables provided in Council Regulations 7. The definition of intellectual property is provided in University Statute XVI.

Under UK law, the payment of royalty or similar income is normally subject to tax and National Insurance which the University will usually deduct at source. Only where the recipient is not subject to UK tax or National Insurance can payment be made ‘gross’.

In some instances staff may receive royalty income from sources other than the University, for example from agreements made with prior employers, or through separate employment with other bodies. In these cases, unless it has been arranged by the University, it is not the responsibility of the University either to facilitate payment or account for any tax liability.

(b) Waiving or giving up employment income

Staff may decide from time to time to give up their right to income received from their employment, or from royalties due to them as described above. Their intention may be that the income is used within their department or research.

It should not be assumed that simply expressing the desire to give up or donate income will prevent a tax liability arising on the individual concerned. If mishandled, the situation can arise where an individual gives up the income but is still taxed on it as though it had been received.

It is essential, therefore, that staff seeking to waive or donate money in favour of the University follow the appropriate guidance:

  • the Royalty and Income Waivers Guide (75kb) guide provides detail on when and how income may be waived completely, with no tax liability arising on the individual;
  • The University's Development Office provides advice and guidance on Gift Aid as an alternative means of donating where it is not possible to make a valid waiver.

Note: It is not possible to ‘waive’ income in favour of a person or body outside the University.