ESM11050 | Check Employment Status For Tax: Personal Service - Does the worker pay the substitute?

CEST asks: ‘Would the worker have to pay their substitute?’ or ‘Would you have to pay your substitute?’

This question is to find out if the worker must engage and pay the substitute. Recommending another worker whom the engager takes on, is not what is meant by the original worker providing a substitute.

See ESM11040 and ESM0532 onwards for further guidance.

If a worker negotiates a fee with the person they send in their place to complete the work and pays that person themselves, this would fall within the ‘Yes’ category for CEST.

If the hirer, or a third party such as an agency, pays the other person this would fall within the ‘No’ category for CEST.

EXAMPLE

Hassan sends Omar to complete the job he was hired to do for a period of time.

• If Hassan pays Omar directly for the work he does, then the worker is paying the substitute.

• If Omar takes over Hassan’s contract and is paid by the hirer or third party then Hassan is not paying the substitute