Ex-HMRC tax inspector sounds alarm over suitability of IR35 online status checker

**mudskipper** · 9 August 2018, 16:52

Originally posted by KUWTC View Post

It's interesting, but I just don't think HMRC/Government, etc, is open to feedback on CEST at all. The phrase "falling on deaf ears" comes to mind... quite a lot where IR35 stuff is concerned, to be quite honest.

https://www.computerweekly.com/news/...s-checker-tool

CEST is terrible. But if the reason for not going ahead with the private sector reforms is "CEST is wrong" then that argument is easily overturned by saying "We'll improve it".

**Hobosapien** · 10 August 2018, 07:29

CEST is a guide which if used 'correctly' HMRC will stand by it's determination. However I'd be worried if during any investigation (they don't say using CEST will guarantee no investigation takes place in future) HMRC say the client didn't answer the questions correctly (in their eyes) so the result of the tool is not stood by.

The independent contract review services will allow anyone concerned about CEST to get a second opinion (by reviewing the contract and actual working practices rather than using CEST) about being outside IR35, that the contractor can then back up with insurance if HMRC come along and try to argue the case after holding their hands up and saying CEST is crap after all.

I wouldn't trust HMRC to stand by CEST (it's a guide not backed by law) and with their history of retrospective taxation I wouldn't want to risk them contradicting their current stance as we 'should have understood their intentions' that they themselves don't appear to fully understand.

So those arguing for an improvement to CEST may be shooting themselves in the foot if they have a client that relied on it for an outside IR35 determination.