Articles - CEST

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Contractors say HMRC’s revamped CEST tool is still unfit for purpose

published on Friday, November 29th, 2019

Although HMRC have recently made efforts to update their Check Employment Status for Tax (CEST) tool ahead of the upcoming 6 April 2020 deadline, many commentators have claimed that it is still not fit for purpose. The ideas behind the new update and guidance are positive, however there are still various hurdles that users are […]

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Filed under: CEST, IR35 News

HMRC launches updated CEST tool

published on Friday, December 6th, 2019

HMRC has released an updated version of the Check Employment Status for Tax (CEST) tool, in order to adequately prepare businesses ahead of the IR35 reform date on 6 April 2020. This is likely in response to criticism levelled at the previous iteration (created back in April 2017) for its inability to provide definitive answers […]

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Filed under: CEST

CEST Tool Inside IR35 Bias?

published on Monday, May 13th, 2019

HMRC’s Check Employment Status for Tax (CEST) tool, is meant to evaluate an individual’s employment status on a set of criteria of which Mutuality of Obligation (MOO) is a key one. Mark Frampton, HMRC’s IR35 Policy Advisor, has been quoted saying about MOO that: “It would rarely, if ever be the case in public sector […]

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Filed under: CEST, IR35 News

CEST Criticised by Judiciary

published on Monday, May 13th, 2019

HMRC’s Check Employment Status for Tax (CEST) tool fails to look at the bigger picture. It’s particularly interesting to measure it against the landmark case of Hall v Lorimer (1993); where Lord Justice Nolan states: “In order to decide whether a person carries on business on his own account it is necessary to consider many […]

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Filed under: Case Law, CEST, IR35 News

HMRC Aggressively Pursuing Contractors About IR35

published on Monday, January 14th, 2019

HMRC appear to be increasing the pressure on contractors working through Personal Service Companies (PSCs) in the Public Sector; in relation to IR35. It’s only just over a year before IR35 is likely to apply to Medium/Large Private Sector companies. HMRC are aggressively pushing contractors to supply them with information concerning: Compliance of the rules […]

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Filed under: CEST, IR35 News

Judge Rejects CEST Assessment

published on Wednesday, October 17th, 2018

Bad news for those adopting a blanket policy for Inside IR35 determinations based on the Check Employment Status for Tax (CEST) tool. A judge has ruled that a contractor was not employed, as the CEST tool indicated, and that tax and National Insurance contributions deducted at source must be returned to the contractor. The judge […]

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Filed under: CEST, IR35 News

HMRC Tax Inspector Criticises CEST Tool

published on Friday, August 10th, 2018

Even HMRC Tax Inspectors are criticising the use of Check Employment Status for Tax tool (CEST) for determining IR35 status. A key component to the changes to the Finance Act, introducing the IR35 changes, moves responsibility for tax due from the fee payer to the client; where reasonable care is not taken. There are a […]

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Filed under: CEST, IR35 News

CEST Contradicts Blanket Inside IR35 Determinations

published on Friday, June 1st, 2018

According to HMRC’s own figures, released under a Freedom Of Information (FOI) request, 54% of completed CEST reports have given an Outside IR35 Determination. This goes against the blanket Inside IR35 Assessments given by some Public Sector Bodies; including the NHS & MoD. These results could lead to contractors making a claim against these Public […]

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Filed under: CEST, IR35 News