ESM11050 - Check Employment Status For Tax: Personal Service - Does the worker pay the substitute?

CEST asks: ‘Would the worker have to pay their substitute?’ or ‘Would you have to pay your substitute?’

If a worker negotiates a fee with the person they send in their place to complete the work and pays that person themselves, this would fall within the ‘Yes’ category for CEST.

If the hirer, or a third party such as an agency, pays the other person this would fall within the ‘No’ category for CEST.

EXAMPLE

Hassan is a bricklayer who is hired to build the walls for a new sports centre for a university. Hassan sends Omar for a period when he is working on another job.

• If Hassan pays Omar directly for the work he does, then the worker is paying the substitute.
• If Omar takes over Hassan’s contract and is paid by the university then the hirer is paying the substitute and not the worker.