Is 'broken' CEST mandatory?
Dave Chaplin, CEO of IR35 Shield, reveals why relying on HMRC’s CEST tool can lead to serious compliance risks. Learn why CEST isn’t legally binding, how it misaligns with case law, and what’s needed to create safe, defendable IR35 status determinations that protect your business from costly tax liabilities.
This webinar, presented by IR35 Shield CEO Dave Chaplin, critically examines HMRC's Check Employment Status for Tax (CEST) tool and its role in IR35 compliance. The session delves into whether CEST is truly mandatory for businesses and clients in determining IR35 status. You'll learn about the significant flaws within CEST, particularly how it misaligns with established case law following a crucial Court of Appeal ruling in April 2022.
The webinar exposes why HMRC themselves do not rely on CEST in their investigations, revealing that government departments who used the tool have faced substantial tax bills. Dave Chaplin emphasises the financial risks associated with using CEST, describing it as "the most expensive free tool you will ever use". He argues that relying on CEST can lead to "unsafe determinations," resulting in costly HMRC enquiries and prolonged tribunal battles. Gain essential insights into building "safe and defendable determinations" through robust contracts and strong evidence, safeguarding your business from significant tax liabilities and reputational damage. This session is crucial for anyone involved in IR35 compliance seeking to understand the real risks and best practices beyond HMRC's public tools.
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