HMRC released an online tool/questionnaire to help contractors decide if their contract falls inside IR35 just before the public sector IR35 implementation in April 2017. CEST has been updated since but the reviews of the system have been mixed.

The CEST (Check Employment Status for Tax) tool determines whether or not you or a worker on a specific engagement, should be classed as employed or self-employed for tax purposes.

The format is a series of multiple choice questions below is an example of the kind of questions to expect.

·         Does the contractor provide their services via a limited company?

·         Can the worker provide a substitute (or have they already)?

·         To what extent does the client exert control over the contractor, e.g. can they move the contractor to a different role/location, decide how and when the work is done, etc.?

·         Is the contractor an ‘office holder’?

Once all questions have been answered The CEST tool provides and instant result and determines whether or not the Intermediaries Legislation (IR35) applies.

A summary is provided, that includes HMRC notes and its understanding of IR35 as it relates to each employment status factor. If CEST deems you caught, the engager becomes responsible for operating IR35, and if not, you can continue to operating outside of IR35.

There are cases where the tool has been unable to make a determination on employment status at all.

Fortunately, the recruitment agency is responsible for determining your IR35 status so whilst the CEST  is helpful in most cases your recruiter will tell you if a contract is inside or outside of IR35

CEST TOOL –  https://www.gov.uk/guidance/check-employment-status-for-tax