FOI release

CEST tool tested against tax cases

Updated 6 September 2018

The Check Employment Status for Tax (CEST) digital service was rigorously tested during development in conjunction with HMRC’s lawyers against live and settled cases and reflects employment status case law.

Under the Freedom of Information rules, HMRC released a list of cases in April 2018 that CEST has been tested against.

In the cases listed, the CEST outcome reflects HMRC’s view of the employment status determined by the facts of the individual case.

In 2 of the 24 cases, CEST returned a different decision to the First-tier Tribunal, which HMRC did not appeal. The First-tier Tribunal decisions do not set a binding precedent. HMRC takes many factors into account when deciding whether to appeal First-Tier Tribunal judgments.

In these specific cases, the judgment in Castle Construction (Chesterfield) Ltd acknowledged that the case was finely balanced. In the case of Novasoft Ltd commentators expressed surprise at the results. HMRC would expect to contest similar cases in future, and the CEST results reflect that position.

Case ESI outcome CEST Appeal outcome
Novasoft Ltd Employed Employed Self-employed
Weightwatchers (UK) Ltd Employed Employed Employed
Sherburn Aero Club Ltd Self-employed Self-employed Self-employed
JL Window & Door Services Self-employed Self-employed Self-employed
Castle Construction (Chesterfield) Ltd Employed Employed Self-employed
Alternative Book Company Ltd Employed Employed Employed
Datagate Services Ltd Self-employed Self-employed Self-employed
MKM Computing Ltd Employed Employed Employed
First Word Software Ltd Self-employed Self-employed Self-employed
Island Consultants Ltd Employed Employed Employed
Parade Park Hotel Ltd Self-employed Self-employed Self-employed
MAL Scaffolding Self-employed Self-employed Self-employed
FS Consulting Ltd Employed Employed Employed
Tilbury Consulting Ltd Self-employed Self-employed Self-employed
Lime-IT Ltd Self-employed Self-employed Self-employed
Future Online Ltd Employed Employed Employed
Usetech Ltd Employed Employed Employed
Larkstar Data Ltd Self-employed Self-employed Self-employed
ECR Consulting Ltd Self-employed Self-employed Self-employed
MBF Design Services Ltd Self-employed Self-employed Self-employed
Marlen Ltd Self-employed Self-employed Self-employed
Netherland Ltd N/A Employed Employed
Dragonfly Consulting Ltd N/A Employed Employed
Primary Path Ltd Self-employed Self-employed Self-employed