HMRC update their CEST tool for Contractors

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HMRC have refined their online ‘Check Employment Status for Tax’ tool this week, in preparation for the private sector IR35 reforms in April, adding/updating about 30-40 questions.

However, many experts remain concerned that it still doesn’t accurately reflect recent test cases, questioning whether it’s truly fit for purpose.

Our initial observations show that the tool now places greater emphasis on the Right of Substitution (although you will no longer get an instant Inside/Outside determination, regardless of how you answer this) plus it doesn’t take Mutuality of Obligation into account, which has been a deciding factor in recent tribunals.