Umbrella Reform - Prepare Your Supply Chain with Brookson

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.

What you need to do now

• 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

• Revisit contracts to build in indemnities and compliance guarantees

Why Brookson?

For over 30 years, Brookson has led the field in contractor compliance—built by Chartered Accountants, Tax Advisors, and Solicitors. Trusted by more than 15,000 contractors and many top recruitment firms, our deep regulatory knowledge, proven technology, and hands-on support will help ensure your supply chain is ready for April 2026.

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