ESM11055 - Check Employment Status For Tax: Personal Service - Hiring and paying helpers

CEST asks: ‘Has the worker paid another person to do a significant amount of this work?’ or ‘Have you paid another person to do a significant amount of this work?’

See ESM0539 for further guidance on workers engaging helpers. A helper is a person who the worker employs to assist them. This is different to a substitute who the worker sends in their place. Employing staff suggests that the worker is running a business and is therefore likely to be self-employed.

If a worker has hired someone else to do a significant amount of the work and paid the helper out of their own pocket, this would fall within the category of ‘Yes’ for CEST.

If a worker has not hired a helper, or the helper was paid by the hirer, or the helper added little of value, this would fall within the category of ‘No’ within CEST.

EXAMPLE

Stephen is engaged by a household goods company as a delivery driver who specialises in the delivery of heavy goods such as beds, tables and white goods. Part of Stephen’s role is to put these goods in the right place within the customer’s house, so heavy lifting is required. Jack comes to help him.

• If Stephen hires and pays Jack himself, bears the risk of that expense and Jack is required to get the job done, then Stephen has hired and paid another person to do significant work.
• If Stephen recommends Jack to the household goods company and they send and pay Jack, Stephen has not paid another person to do significant work.
• If Stephen brings Jack himself but the household goods company is the one to pay Jack, Stephen has not paid another person to do significant work.
• If Stephen can manage the work himself and just brings Jack along for company or Jack is just doing this as a favour, Stephen has not paid another person to do significant work.