Since 6 April 2021 large and medium-sized organisations have had to determine whether or not a worker supplying their services via their own personal service company would be treated as an employee if directly engaged.
HMRC suggest organisations use their Check Employment Status for Tax (CEST) tool on their website to check the worker’s status, although that is not obligatory.
HMRC have recently confirmed that they will be bound by the result of the software provided the information is accurate and it is used in accordance with their guidance. However, they will not stand by results achieved through contrived arrangements that have been deliberately created or designed to get a particular outcome.
For more information please see James’ previous article: The ‘Off-Payroll’ working rules as of 6 April 2021
If you need advice about off payroll working and IR35 please contact James Geary on firstname.lastname@example.org or call reception on 01242 776000 to request a call back.