Introduction
For every engagement, Somerset Council assesses employment status and issues a Status Determination Statement (SDS) that explains the outcome, the reasoning, and your right to challenge. This page explains what to include in a challenge, how we review it, and what happens next, including monitoring and our non-compliance protocol.
Initial Status Determination
- Somerset Council completes an assessment which may include completing a CEST (Check Employment Status for Tax) for each engagement.
- We issue a Status Determination Statement (SDS) to the worker, PSC , agency, or intermediary.
- The Status Determination Statement sets out the CEST outcome, our rationale, and how to challenge within 45 calendar days.
Challenge Submission (within 45 days)
Submit your challenge in writing within 45 days of receiving the Status Determination Statement to HRAP-StatusEnquiries@somerset.gov.uk.
Please include:
- Specific reasons for disagreeing with the determination
- Any supporting evidence or clarification
- References to relevant working practices or contractual terms
Somerset Council Review of Challenge
We will review your challenge and any new evidence. As part of this review, we may:
- Reassess the engagement using CEST
- Consult HMRC guidance and internal HR/Payroll expertise
- Request further clarification from the worker or intermediary
Revised Determination (if applicable)
- If your challenge is upheld, we will issue a revised Status Determination Statement and confirm the effective date.
- If your challenge is rejected, we will reaffirm the original Status Determination Statement with a detailed explanation.
Ongoing Monitoring
- We monitor engagements; if working practices change, a new CEST assessment may be required.
- The challenge process remains open until the final invoice is paid.
- Challenges without substantial new evidence may be declined with a standard response.
Non-Compliance Protocol
Where an agency or intermediary refuses to comply with PAYE obligations, Somerset Council will:
- Attempt to pay the worker via Council payroll
- Block the vendor
- Notify the service/school to cease engagement
- Pay any outstanding invoices and issue a formal termination notice
- Report the company to HMRC via the HMRC Fraud Reporting Portal
Communication Templates
We use standardised email templates to:
- Notify agencies of non-compliance
- Confirm termination of engagement
- Outline our legal obligations under HMRC guidance
Documentation and Record-Keeping
- All Status Determination Statements, challenges, responses, and related communications are logged in Somerset Council records.
- Records are retained for audit and compliance purposes.
Legal and HMRC Consultation
For complex cases, we may consult HMRC directly and follow HMRC guidance on factors including:
- Mutuality of obligation
- Control and direction
- Financial risk
- Substitution rights
- Integration into the organisation