A recent FOI request has uncovered a 73% decline in the use of HMRC's Check Employment Status for Tax (CEST) tool since 2021-22, indicating growing skepticism around its reliability. The decline continued into the most recent tax year, where a 50% drop year-on-year was noted. Concerns over the tool's accuracy and bias have led many in the contracting sector to seek alternatives. CEO Dave Chaplin emphasized that the decrease in usage reflects industry awareness of CEST's limitations, rather than a drop in contractor demand, noting that consistent misclassification issues should maintain usage levels.
A Freedom of Information request reveals a dramatic 73% decline in the use of HMRC's CEST tool since 2021-22, raising doubts about its reliability.
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