Majority of contractors unhappy with IR35 CEST tool

(2 minutes to read)

New report reveals 81% of contractors would be deterred from working through a recruitment agency or for a client in the private sector if CEST was the only IR35 status method used.

With many industry experts predicting that it’s only a matter of time before the government extend the recent public sector IR35 changes to the private sector, contractors have expressed how unhappy they are with the CEST tool.

According to the Qdos Contractor data, which compiled it’s report after surveying 1,500 self-employed workers, as many as 81% would be less likely to work with private sector organisations that rely solely on CEST (Check Employment Status for Tax) to determine a contractor’s status.

This outlook is to be expected after seeing how IR35 changes have had such a negative impact on the public sector.

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Qdos Contractor CEO, Seb Maley, commented “All the signs point towards the announcement of private sector IR35 reform this year. So that 81 per cent of contractors would rather not work through a recruitment agency or for a client using only CEST poses a real threat to staffing in the sector.

“Question marks still remain over CEST’s reliability, and understandably, contractors do not want to be wrongly placed inside IR35 and therefore made to pay similar taxes to an employee, but without any of the benefits.

“IR35 is a particularly complex tax legislation and should private sector changes go-ahead, agencies and clients must reassess the way in which they make IR35 decisions. After all, CEST is not mandatory and independent assessments are perfectly acceptable.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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