HMRC refutes findings from ContractorCalculator survey

HM Revenue & Customs has slammed claims thousands of contractors are not using its IR35 status tool.

Findings from a survey of 6,000 contractors from online contracting site ContractorCalculator, released this morning, revealed just one in 10 contractors polled are using HMRC’s Check Employment Status for Tax (CEST) IR35 status tool.

Of the 1,100 contractors who said they used the tool in the survey, 25% are being given an ‘IR35 does not apply’ result, when ContractorCalculator maintains that IR35 should definitely apply.

The company further claims 45% of the ‘IR35 does not apply’ results being handed out by HMRC are based solely on substitution and do not take any other factors into account.

But in a strongly worded response, HMRC disputed the survey’s findings in a statement sent to Recruiter.

“The survey does not present a true picture, and the assertions made are totally inaccurate – the CEST service has been used more than 450,000 times already, and public sector organisations are using it routinely.

“CEST provides a result in 85% of cases, and for the 15% of complex cases where a result is not provided, we have advisers available to talk through the issues.

“Any right of substitution must be exercisable in reality and not simply a contractual clause – decisions on employment status should be based on what would happen in practice, not just what it says in the worker's contract.”

• What is your experience of the CEST service? Do you agree with the results from the survey or is HMRC right to dispute the findings? Email us at recruiter.editorial@redactive.co.uk or tweet us below to tell us your thoughts. We will run comments online in a round-up at the end of the week.

Email story to a friend

New approach needed to retain and recruit mental health nurses

The UK government needs an entirely new approach that prioritises retention as well as recruitment to arrest the alarming decline in mental health nurse numbers.

21 May 2019

APPOINTMENTS: 20-24 MAY 2019

This week’s appointments include: Airswift, Bullhorn, Europa Worldwide Group, GatenbySanderson, The AA, Xpertise Recruitment

People 20 May 2019

Use of HMRC’s CEST tool by Met Office and CCS criticised by contracting body

ContractorCalculator has raised further concerns over the accuracy of HM Revenue & Customs’ Check Employment Status for Tax (CEST) tool.

Legislation 14 May 2019

Home care service looks to recruit for 100 roles in Scotland

A newly-launched home health service is calling on social care professionals to apply for one of the 100 live-in care roles on offer across Scotland.

14 May 2019
Top