ESM11036 | Check Employment Status For Tax: Mutuality of Obligation

CEST asks: ‘Do you have, or will there be, a contract in place?’

This question is to establish if there is, or will be, a contract in place to determine the basic requirements for Mutuality of Obligation - Without Mutuality of Obligation there can be no contract of any kind.

A contract is an agreement between two or more parties which is intended to be legally binding. It can be written, oral, implied or a combination of these.

Revenue and Customs v Professional Game Match Officials Ltd [2024] reaffirmed that the basic requirements to determine whether there is a contract in existence at all are:

• that the engager must be obliged to pay a wage or other remuneration, and

• that the worker must be obliged to provide his or her own work or skill.

This has been the long- standing position and prerequisite for using CEST. This question and guidance replaces a previously displayed disclaimer and allows the user to confirm they understand.

Where you answer ‘no’ to this question you will be unable to continue through the tool. This is because there must be a contract to consider whether that engagement is either self-employed or employed.

Where you answer ‘yes’ to this question you can continue to use the tool. This question does not impact your determination