Pros & Cons of using the HMRC’s CEST tool for IR35 determinations

In this article our Senior Contracting Recruiter, Blake Thompson discusses the benefits and drawbacks of using the HRMC's CEST tool for the IR35 determinations. 

Get all the details below!

No healthy discussion around IR35 can be had without some grumblings around the HMRC’s ‘Check Employment Status for Tax’ or CEST tool and the lack of clarification it gives to contractors, end-clients and any one who dares try and use it for it’s supposed purpose

But what’s actually wrong with it, and should you trust it to give a true and legally binding IR35 determination? We’ve put together a pros and cons list outlining the key points below:

CON’S:

PRO’s:

So, what are the alternatives?

There are several options that will provide full Status Determination Statements and that can also be insured to cover the entire supply chain. A few examples are available below:

The only downside compared the CEST tool? They aren’t free. But as you’ve already seen, free in this case isn’t better.