29 November 2019 #Employment
As businesses continue to prepare for the impact of the April 2020 changes to IR35 and the private sector, it is important to be aware that this week the government has launched an update to its online check employment status for tax (CEST) tool.
Work can only be employment if:
As well as only producing an answer in 85% of cases, previous iterations of CEST had been rightly criticised for not taking enough consideration of control in determining whether tax and NI is payable.
The latest version is much less crude and deals with control in much more detail. Of course, CEST is still not infallible.
In order to be well prepared for the April 2020 changes and avoid the very expensive consequences of getting this wrong, it is crucial that businesses review their use of contractors by:
For more information on how to get ready for the imminent IR35 changes, including specific advice where you believe that the status checking tool has not given the correct answer, contact our employment team.