28/07/2021
The difficulty of creating an automation tool to streamline a complex problem is that when the problem is not solvable by simple true/false input logic then, to achieve an accurate output, it requires detailed understanding of the problem by the user using the tool, to enter the answers correctly...
Off-payroll legislation has multiple facets that need to be considered as a whole - simply meeting a single criteria like substitution is not going to hold water when it is clear the engager is exerting control or there is mutuality of obligation.
Each Actor in the supply chain has different responsibilities to ensure compliance is maintained, not just at the point of completing the SDS but also throughout the contract lifecycle.
The problem is not CEST. The problem is failing to recognise that CEST (and every other SDS tool) requires you to understand whether or not your internal processes and controls (and those of your supply chain) can comply with the answers you put into CEST.
If they can't, then both HMRC and your insurance may well determine that you have not answered the questions honestly and ultimately void the determination and land you with a very big bill.
Of course, to answer them honestly AND correctly you have to both understand AND define your processes and controls to meet the needs to off-payroll engagements (and also the processes of your entire supply chain) and these need to stand the test throughout the contract lifecycle.
Your ways of working, governance and documentation have to be rock solid from start to finish and across your supply chain...
Its the reason we created https://contora.com
The only solution dedicated to off-payroll compliance that aligns the engagement process for everyone in the supply chain from start to finish...
The CONTORA® off-payroll framework allows you to manage your contingent services in full compliance of off payroll rules & IR35 legislation
