HMRC recognises need for enhanced Check Employment Status for Tax tool

HMRC is continuing to work with stakeholders to create an enhanced version its Check Employment Status for Tax (CEST) tool, the latest IR35 Forum minutes revealed.

Although working to develop enhancements to CEST, HMRC said that it stands by the tool in its current form. This is despite open criticism and accusations that CEST is wrongly assessing employment status.

“HMRC are aware of the need to release the enhanced version of CEST as soon as possible, but in the meantime confirmed that it stands by CEST, which was developed over an 18 month period in consultation with stakeholders, and is accurate,” according to the minutes.

The IR35 Forum consists of external stakeholders who meet regularly with HMRC to discuss how the legislation works and how it affects key taxpayer groups. Members of the forum were keen to understand when HMRC’s enhancements for CEST were likely to be seen.

“Members asked about the proposed timetable for CEST enhancements, including engagement and testing with members. HMRC confirmed that they are working with IT teams, and forum members, along with other stakeholders, have been invited to get involved in testing,” stated the minutes.

Other topics discussed during the Forum included the consultation into Off-payroll working rules from April 2020. The consultation is open until 28 May and HMRC confirmed that draft legislation will be published in the summer, in line with the fiscal events timetable. Legislation will be included in Finance Bill 2019/20.

Other issues covered included: The Mutuality of Obligation discussion paper; concerns about non-compliant intermediaries; an update on set-off in settlement cases; and guidance products.

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