Last month we reviewed HMRC’s Check of Employment Status for Tax tool after HMRC refused to accept NHS Digitals status determination outcomes that had been generated by their very own tool. Now with less than 20 weeks to go before the new off-payroll working in the private sector rules are due to come into effect in April 2020, HMRC have finally launched an updated CEST.
Does anyone remember a Chancellor of the Exchequer called Philip Hammond? Seems that much has happened since he introduced the idea of an Autumn Budget and a Spring Statement to rationalise the tax raising and public spending announcements for the forthcoming fiscal years. It seemed a sensible thing to do and everyone quickly adjusted to it.
HMRC’s latest briefing notes on the changes to off-Payroll working rules contain a statement which the optimistic and trusting contractor will feel is a positive one whilst his or her more pessimistic and less- trusting colleague may feel the need to remain wary about.
There is a doctrine in English law called ‘legitimate expectation’. It’s there to protect a person against a public authority resiling from a representation it has made. It is is based on the principles of natural justice and fairness, and seeks to prevent the abuse of power.
HMRC will consider the multiple factors when determining status. Clients should ensure that its processes and documentation support the IR35 status decision it makes (particularly when the decision is “outside IR35”). The following factors are what HMRC will consider when making an individual’s status determination statement (SDS):