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

CEST asks: 鈥榃ould the worker have to pay their substitute?鈥� or 鈥榃ould you have to pay your substitute?鈥�

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 鈥榊es鈥� category for CEST.

If the hirer, or a third party such as an agency, pays the other person this would fall within the 鈥楴o鈥� category for CEST.

EXAMPLE

Hassan is a bricklayer who is hired to build the walls for a new sports centre for a university. Hassan sends Omar for a period when he is working on another job.

  • If Hassan pays Omar directly for the work he does, then the worker is paying the substitute.
  • If Omar takes over Hassan鈥檚 contract and is paid by the university then the hirer is paying the substitute and not the worker.