ESM11165 - Check Employment Status For Tax: Worker’s contracts - Work of a similar nature in the last 12 months

CEST asks ‘Has the worker done any self-employed work of a similar nature for other clients in the last 12 months?’ or ‘Have you done any work for other clients in the last 12 months?’

CEST considers what work could contribute to a worker’s business, not the business of someone else as this can be important when considering employment status. Working for other engagers performing work of a similar nature can indicate a worker is in business for themselves. It can show a business structure exists and the individual is not solely reliant on one engager.For some further information on this concept see ESM0549

A worker can be employed for one engagement and self-employed for others. Having some employed work does not prevent other engagements from being self-employed or vice versa.

A worker can also perform work of a different nature for different hirers. Those who are self-employed typically exploit their particular skills and expertise on a specific type of work. A worker doing work for multiple engagers, exploiting the same skills and expertise, can be more indicative of self-employment. Workers doing a range of different work suggests that the engagements are unrelated, rather than part of a business.

Where workers have had other self-employed engagements exploiting the same skills and expertise, this would fall within the ‘Yes’ category for CEST.

Where workers have not performed other work or have only had other work which were employments, this would fall within the ‘No’ category for CEST.

Where workers have performed other work, even if it was self-employment, but that work was of a different nature, exploiting different skills and expertise, this would fall within the ‘No’ category for CEST.

EXAMPLE

• Stacey is an IT programmer and has incorporated her own PSC. She agrees a six-month contract to design a stand-alone piece of software for a large business. In the previous 12 months Stacey has had one other contract providing similar IT services but this was as an employee.

When CEST is completed for Stacey the previous contract would not be relevant to the question about work done for other clients in the last 12 months. Only contracts entered into by Stacey’s PSC, outside of IR35 should be considered as relevant for the purposes of this question.

If Stacey had held another position elsewhere in the previous 12 months but it had been for a different type of job, for example working part-time in a shop, it would also not be a relevant contract for the purposes of this question.