Search
  • Helen White

Updated tool for IR35

HM Revenue and Customs (HNRC) has updated their Check of Employment Status (CEST) tool which is used to check the employment status of individuals for taxation. This tool will be used ahead of the pending introduction (6th April 2020) of the IR35 off-payroll rules for the private sector.

The CEST tool will be used to define whether a contractor or employer should be classed as employed or self employed for tax purposes, as part of the IR35 rules. It is critical that this tool gives the correct result as it will define whether the correct employment status has been applied.

The tool has been updated, and around 30 questions have been changed to reflect the lobbying from interested parties, the tool has been tested against case law with the CEST tool deciding whether or not IR35 legislation applies.

Currently all the main political parties are claiming that they will review the IR35 rules after the General Election as there are continued calls from industry experts that the tool will not give correct results in certain circumstances.

It is a complex area and if in doubt how this will affect your taxation and self-assessment status it is advised that you discuss with your accountant.

0 views

Recent Posts

See All

CJRS changed from 1st November

Claims for periods starting on/after 1 November 2020 can include individuals employed at 30 October 2020 provided an RTI submission has been made between 20 March 2020 and 30 October 2020 notifying at

Job Support Scheme (JSS)

Rules for the JSS (Open) - the Government will pay 61.67% of hours not worked up to a cap of £1,541.75 per month. The employer will contribute 5% of non-worked hours up to a cap of £125 per month. The

Tel. 0117 287 2438

©2019 by Acer Accounts            Company Information