ESM11055 | Check Employment Status For Tax: Personal Service - Hiring and paying helpers

CEST asks: ‘Has the worker paid another person to do a significant amount of this work?’ or ‘Have you paid another person to do a significant amount of this work?'

This question is to establish if the worker has paid for substantial help. Where a worker pays for substantial help, this may be a pointer towards self-employment and should be considered as part of the dominant feature test per the judgement in Northern Lights Solutions Ltd v Revenue & Customs UT 2020/000353- See ESM7325.

See ESM0539 and ESM11040 for further guidance. A helper is a person who the worker employs to help them. This is different to a substitute who the worker sends in their place. Employing staff suggests that the worker is running a business and is therefore likely to be self-employed.

Where a helper is not essential for the completion of the job, the decision to engage support is personal choice. As this is not essential, it should not be considered for this question.

If a worker has hired someone else to do a significant amount of the work and paid the helper out of their own pocket, this would fall within the category of ‘Yes’ for CEST.

If a worker has not hired a helper, or the helper was paid by the hirer, or the helper added little of value, this would fall within the category of ‘No’ within CEST.

EXAMPLE

Stephen is engaged by a household goods company in a role which requires heavy lifting and manoeuvring of large items. He asks Jack to help him.

• If it is not essential for Stephen to bring Jack and the work can be completed without him, Stephen has not paid another person to do significant work.

• If Stephen is unable to complete the work without help, the engager did not provide suitable help and he hires and pays Jack himself then Stephen bears the risk of that expense and has hired and paid another person to do significant work.

• If Stephen recommends Jack to the household goods company and they send and pay Jack, Stephen has not paid another person to do significant work.

• If Stephen brings Jack but the household goods company is the one to pay Jack, Stephen has not paid another person to do significant work.

• If Stephen brings Jack along for company or Jack is just doing this as a favour, Stephen has not paid another person to do significant work.