IR35 and HMRC

CEST is the acronym for Check Employment Status for Tax, a tool HM Revenue and Customs (HMRC) developed to help determine individuals' employment status for tax purposes, including IR35 compliance. It is guidance only and has no statutory force.

HM Revenue and Customs (HMRC) enforces IR35 compliance through compliance checks. This will involve reviewing contracts and documentation and may result in enforcement action.

HMRC’s CEST tool is there for guidance only. It is not a legal requirement to use HMRC's CEST (Check Employment Status for Tax) tool to assess IR35 status

Receiving an IR35 compliance check letter from HMRC can be stressful, and professional guidance is needed to handle it appropriately. There is no one-size-fits-all approach - a bespoke strategy should be formed based on your unique situation.

Before responding to HMRC at all, the first thing you will want to do is to engage an expert IR35 defence advisor.