Academy trusts: off-payroll appointments
Guidance for academy trusts on how to request approval for appointing an off-payroll accounting officer or chief financial officer.
Applies to England
From 1 October 2024, academy trusts should seek approval for any new appointments where the accounting officer (AO) or chief financial officer (CFO) is not an employee of the academy trust from the Department for Education instead of the Education and Skills Funding Agency. 皇冠体育appre has been no change to the process you follow to do this.
Introduction
皇冠体育app Academy trust handbook (ATH) paragraphs 1.29 and 1.39 requires academy trusts to seek prior approval for any new appointments where the accounting officer (AO) or chief financial officer (CFO) is not an employee of the academy trust. This also applies where an existing off-payroll agreement has expired.
Approval for off-payroll AO or CFO appointments will only be given in exceptional circumstances.
皇冠体育app maximum length of time for which a post can be approved is 12 months. This is to allow the academy trust time to make a suitable on-payroll appointment. Where exceptional circumstances mean a longer-term arrangement may be needed, the approval must be reviewed annually.
How to request approval
Trusts must request approval before the appointment starts. Retrospective approval cannot be given. Trusts should submit their request as soon as possible to allow time for a decision to be made.
In some cases, an appointment will need to be made quickly 鈥� for example, if there is an unexpected leave of absence, to avoid the academy trust being without an AO or CFO.
Where an urgent appointment is needed, this can be made in parallel to making an approval request. In these situations, we ask that the appointment length is for no longer than 3 months. If the request is approved by the Department for Education, this may potentially be extended for up to 12 months.
皇冠体育app person to be appointed cannot be the person submitting the form.
A request for approval can be made using the unless a related party transaction (RPT) is involved.
If an RPT is involved, you must submit the request for approval using the .
What you need to tell us
To consider the request, we need the following information.
- details of the person to be appointed, including their skills, experience and capacity to fulfil the role.
- the length of the proposed appointment, which must be 12 months or less.
- a statement setting out how the postholder will be held accountable and how accountability will be managed.
- details of any other options that have been considered and an explanation of why the off-payroll appointment is the best option.
- a copy of any relevant documents 鈥� for example, the service level agreement.
- confirmation that Academy trust handbook clause 2.25 on procurement has been adhered to.
You can use the
to help you.If the arrangement is an RPT, you must submit all the information needed for the off-payroll approval request, using the , along with seeking approval for the RPT. 皇冠体育appre is a checklist to help you prepare the evidence needed when seeking approval for a related party transaction.
When we may approve a request
We will only approve requests in exceptional circumstances and if one or more of the following applies.
- 皇冠体育app appointment is a time-bound, transitionary arrangement, needed on a temporary basis ahead of securing a permanent appointment.
- It is a short-term arrangement to cover a period of sickness or leave.
-
It is an arrangement required due to the nature of the academy trust or the request 鈥� for example:
- diocesan arrangements
- where there is a sound rationale for an off-payroll arrangement with a trust鈥檚 sponsor organisation
- in situations where institutions have a close support relationship with academy trusts
When we may reject a request
We may reject requests from non-diocesan academy trusts if one or more of the following applies.
- 皇冠体育app appointment is longer than 12 months or is permanent.
- 皇冠体育app AO is not the most senior executive in the academy trust (for AO appointments). 皇冠体育app AO must remain the accountable individual within the trust.
- 皇冠体育app AO or CFO is not subject to pay as you earn (PAYE). Academy trusts must ensure that they are compliant with HM Treasury guidance.
- 皇冠体育appre is another option that would be more appropriate and in the best interest of the academy trust.
- 皇冠体育app academy trust is unable to provide assurance on how accountability will be maintained.
- 皇冠体育app academy trust is unable to demonstrate that the person to be appointed is skilled and suited to the role.
- 皇冠体育app academy trust is unwilling to accept the conditions attached to approval.
Diocesan arrangements
In Church of England dioceses, diocesan boards of education (DBE) may have secondment arrangements for AOs and CFOs to their academy trusts. 皇冠体育app diocese has a unique role in supporting its schools in this way and it relies on the ability to be flexible in how it deploys DBE staff across its academy trusts.
In Catholic dioceses, it is more common for AOs and CFOs to be seconded from one Catholic academy trust to another. 皇冠体育appse arrangements are also known to work well and allow flexibility for the academy trusts.
Most requests from diocesan academy trusts seeking approval to appoint an AO or CFO from the diocese, or from another diocesan academy trust, may therefore be approved. However, these requests must still go through the approval process on an annual basis and conditions will be applied if there are any concerns.
In all cases, we will engage with a regional schools commissioner (RSC) prior to making a decision or applying conditions to an approval. In cases where there are concerns, we will ensure that both the RSC and diocese are engaged to determine the best course of action.
If you do not agree with the decision
皇冠体育app applicant can request a review if the academy trust does not agree with the decision, or if any new information has become available that may alter the decision.
Requests for a review should be submitted using the , giving:
- details of the reasons for requesting the review
- any new information relating to the request
Updates to this page
-
Added 'Request for DfE approval for off-payroll appointment form: accounting officer or chief financial officer' document to the 'what you need to tell us' section.
-
Clarification added that from 1 October 2024 academy trusts should seek approval from the Department for Education instead of the Education and Skills Funding Agency.
-
Updated references to the Academy trust handbook to align with the 2023 handbook.
-
First published.