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Check employment status for tax

Check employment status for tax

27 June 2024

The Check Employment Status for Tax (CEST) tool can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sectors.

You can use the Check Employment Status for Tax (CEST) tool to determine if tax purposes classify a worker as employed or self-employed in both the private and public sectors.

The service offers HMRC’s perspective on whether the IR35 legislation applies to a specific engagement and whether a worker should pay tax through PAYE. The service also assists in determining if off-payroll working rules in the public sector apply to a public sector engagement.

You can use the software to verify the employment status of:

  • a worker providing services;
  • a person or organisation hiring a worker; or
  • an agency placing a worker.

HMRC commits to uphold the result unless a compliance check reveals inaccurate information. However, HMRC will not support the results of contrived arrangements designed to yield a specific outcome from the service. HMRC treats this as evidence of deliberate non-compliance, which could lead to higher penalties.

The service operates anonymously, and it does not store results online. You can print the results and keep them for your records. If the worker’s role changes, you should reassess their status.

Embrace the ease and accuracy of the CEST tool. It’s a valuable resource for businesses and individuals alike, ensuring clarity in employment status and fostering confidence in your tax compliance. Stay informed, stay compliant.

Source: HM Revenue & Customs Mon, 24 Jun 2024 00:00:00 +0100

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