HMRC's CEST tool fails to provide answer in more than 188,000 cases

The latest usage data from HMRC’s check employment status for tax (CEST) tool shows it has been unable to deliver a verdict over 188 000 times in the past year.

The data shows that between November 2019 and November 2020 CEST was used 975 416 times and produced these results:

• 52% of cases determined outside IR35 (505 598);
• 29% inside IR35 (281 099); and
• 19% undetermined with CEST unable to deliver an answer (188 719).

When the tool cannot provide an answer users are told to check the information they have entered referred to HMRC’s Employment Status Manual and given HMRC’s contact details.

The figures also provided an analysis of who used the tool. Hirers were the most frequent users (536 4180) followed by workers (422 139) and then a small number of agencies – only 16 859.

Qdos chief executive officer Seb Maley said...