CEST tool tested against tax cases
Updated 6 September 2018
© Crown copyright 2018
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This publication is available at https://www.gov.uk/government/publications/cest-tool-tested-against-tax-cases/test-results-produced-after-cests-development
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 |