Do you know how to use CEST?

HMRC's Check Employment Status for Tax (CEST) tool will determine whether an engagement is caught by the off-payroll working rules and therefore how any payments need to be processed.

Whilst it may seem straightforward, the questions can be ambiguous and HMRC guidance (as outlined in the Employment Status manual) needs to be read in conjunction with the questions.  

Please bear in mind that in the last year (2020/21) about 21% of rulings from CEST have come back inconclusive. 

Before using CEST, you need to understand how the relationship works both from a contract and practical (every day) perspective (please see our article on how to determine status for more information).

Due to the nature of the tool, your answer will have to fit into a pre-populated list of responses and this is why guidance and advice is key when using CEST.

Once you have the result, a copy should be kept along with any evidence or guidance used.

This must be repeated for each engagement. Should HMRC enquire into the arrangement, they will uphold the decision provided it has been completed accurately. 

For any inconclusive rulings, please seek professional help as this will show that you have taken reasonable care when coming to your final conclusion.

We can assist with queries on CEST, carrying out employment status and contract reviews and with HMRC enquiries. 

If you have any questions regarding any of the above, please contact your normal Bishop Fleming contact or a member of the Employer Solutions team. 

Further information

For more information on employer issues check out our Employer Solutions Knowledge Hub.