The UK Government has now published long-awaited legislation to tackle non-compliance in the umbrella company market. Released on 21 July 2025, the new rules mark the most significant regulatory shift in the contractor supply chain since the IR35 reforms.
Coming into force on 6 April 2026, the legislation introduces joint and several liability for PAYE and National Insurance Contributions (NIC), placing legal and financial responsibility for unpaid taxes directly on recruitment agencies and, in some cases, end clients.
This reform aims to eliminate tax avoidance models, close loopholes exploited by mini-umbrella schemes, and drive greater transparency and accountability across the labour supply chain. It reinforces the importance of using compliant umbrella providers and places a renewed focus on governance, due diligence, and ongoing monitoring.
This represents a fundamental shift in risk – and waiting for the final legislation to act could be too late.
Review your umbrella partners and audit your PSL
Conduct thorough due diligence—continual auditing, not one-off checks
Track payslips and payroll submissions from your umbrella providers
For any enquiries please submit your enquiry below and a member of the team will contact you shortly. Alternatively, you can email us: [email protected] or call us on: 0800 230 0213
Webinar: “Umbrella Tax Changes – What Recruiters Need to Know”
Date: Thursday 24th July 2025 | Time: 11:00–11:45 am
Secure your place now to learn:
What the legislation actually requires
How to de-risk your supplier chain today
How Brookson can guide and support your compliance journey
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