Stressed by tax?
Get Earnr Pro

CEST Status Tool

[siː-iː-ɛs-tiː ˈsteɪtəs tuːl]



CEST Status Tool allows users to anonymously check if they should be considered an employee or if they can count as a contractor.

More detail:

CEST stands for Check Employment Status for Tax. It was introduced by HMRC in 2017 to help users determine their employment status for tax purposes. The tool works by asking an anonymous user a series of multiple-choice questions, to determine if they are Self-employed or an Employee.

The tool has been heavily criticised for its discrepancies in criteria and its lack of context when giving its final verdict. It also only provides a determination 85% of the time.

This tool was introduced to help crack down on the Employees and employers who were hiding their Employees as Contractors. IR35 was introduced to allow HMRC to intervene in such a situation.

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr