HMRC’s check employment status tool

KEY POINTS

• HMRC tested CEST against settled and live cases.
• The test does not specifically take into account mutuality of obligation.
• Changing nature of employment status creates uncertainty for workers.
• More amendments will be required for CEST when off-payroll rules change for the private sector.

After a lengthy investigation Contract Calculator concluded in August that HMRC’s check employment status tool (CEST) was ‘routinely’ misleading contractors and self-employed people coming to ‘the wrong conclusion in almost half of cases’ (tinyurl.com/yc95n98p).

Then under the freedom of information rules HMRC issued a press release that included a list of cases against which CEST has been tested (tinyurl.com/ydh54tu9). It said the digital service had been ‘rigorously tested during development in conjunction with HMRC’s lawyers against live and settled cases and reflects...