IR35 – what is HMRC’s CEST tool? What are its limitations?
CEST (Check Employment Status for Tax) is a tool created by HMRC to help clients determine whether any contractors they engage fall inside or outside IR35.
The aim of IR35 (the Intermediaries Legislation) is to tax ‘disguised employment’ at a similar rate to employment. Where an individual works via their own limited company, but in a manner far more akin to a traditional employee.
The additional ‘Off-Payroll’ rules were added in 2017 (public sector) and from April 2021 (private sector).
Our guides outline what IR35 is, the financial consequences if you are caught, how to ensure you remain outside IR35, and the ‘Off-Payroll’ rules.
You can use an excellent IR35 Calculator on IR35 Update.
Try these popular articles as a starting point.