CEST TEST REVAMPED AHEAD OF IR35 REFORM DATE
Many recruitment agencies should be preparing their clients and candidates ahead of the new IR35 reform date 5th April 2020. These preparations should include notifying their ‘medium/large company clients’ of their responsibilities to carry out CEST tests on all current and future temporary/contract placements who operate within the private sector.
If you are a recruiter who hasn’t notified your clients as of yet, you must do so immediately.
UPDATED CEST TEST
To prepare businesses ahead of the IR35 reform date, HMRC has released an updated version of the Check Employment Status for Tax (CEST) tool. This tool is used to determine whether a temporary worker/contractor should be classed as self-employed under the new IR35 legislation.
Medium-large company clients who engage with temporary/contract placements within the private sector, will need to familiarise themselves with this tool.
Commenting on the launch of the new tool, an HMRC spokesperson revealed the body had worked with more than 300 stakeholders in a bid to make CEST ‘clearer, reduced user error and consider more detailed information.’
‘It must be remembered that CEST is the only tool that will produce a result that HMRC will stand by – provided the information input is accurate and the tool is used in accordance with guidance.’
FREE IR35 GUIDE FOR RECRUITMENT AGENCIES
If you would like more information on how to prepare your recruitment agency ahead of the IR35 changes, you can download our free written guide here.