Expensive lesson for DWP!

The DWP have been landed with a tax bill of £87.9 million as a result of incorrectly determining the status of its contractors. This is despite their reliance on HMRC’s Check Employment Status for Tax (CEST) tool.

From 2017 the responsibility for making the relevant status determinations was transferred from contractors to end hirers in the public sector. With the same rules now in force for the private sector, it is clear that businesses should exercise caution when using the CEST tool in isolation to make decisions on the status of their contractors.

An expensive lesson learnt and a sober reminder that is is vital to make sure that the status of anyone working in your business is determined correctly. If you are unsure about the status of anyone working in your business, get in touch with one of our team who will be more than happy to help.

Share:

More Posts

We need to talk

Having difficult conversations can be, well, difficult! If you are an employer, you’re acutely aware that telling someone who has employment rights and bills to pay that you’re ending their

How do you unfurlough staff then?

The simple answer is that you: (1) work out what the business needs and then (2) talk to the furloughed employees (ASAP!) about your proposed plans and what that might

The ticking clock

What’s your plan when furlough ends? We all have stuff that we put on the back burner until we really have no option but to do something about it, and

Send Us A Message

Free resources for employers

Subscribe to Guardian Law
Guides & Updates

Stay one step ahead with our free information and offers for UK employers