HM Revenue and Customs (HMRC) has shared data revealing a 73% reduction in the usage of its IR35 status checker, the Check Employment Status for Tax (CEST) tool. Initially criticized since its 2017 launch for errors, the tool aims to help organizations assess contractors' IR35 status using a quiz format. The decline in usage signals significant discontent, particularly after attempts to revamp the tool prior to the extension of IR35 reforms into the private sector in 2021, suggesting it remains unfit for many contractors' needs.
The much-maligned IR35 status checker tool, used by HMRC, saw a 73% decline in usage over the past financial year, reflecting growing discontent among contractors.
Critics have long argued that the Check Employment Status for Tax tool is error-prone and unfit for purpose, reflecting the frustrations within the contracting community.
Originally launched before major IR35 reforms, the CEST tool has undergone criticism since its inception, and despite improvements, user trust remains critically low.
The implementation of the IR35 reform in the private sector has exacerbated dissatisfaction, as fewer contractors now trust the tool to accurately assess their status.
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