From 6 April 2026, HMRC will introduce joint and several liability in labour supply chains that use umbrella companies. In plain terms: if an umbrella fails to pay PAYE/NIC correctly, HMRC can seek the debt from others in the chain, typically the agency with the contract to supply the worker or, where there’s no agency, the end client.

​We’re here to make this simple and low-risk.

What’s Changing - in brief

• Joint & several liability (JSL): HMRC can recover unpaid PAYE/NIC from a “relevant party” in the chain if an umbrella defaults.

• Who’s on the hook: Usually, the agency directly contracted with the end client; however, if there’s no agency or the agency is connected to the umbrella company, liability can fall to the end client.

• Effective date: 6 April 2026 (subject to Finance Bill passage and final guidance).

The takeaway: umbrella non-compliance can create risk for clients and agencies, even when you’ve done nothing wrong.

​

Your Exposure

• Potential liability for unpaid PAYE/NIC from third-party umbrellas

• More audit and documentation to evidence clean supply chains

• Complexity managing multiple providers and varying standards

​

Our Solution: In-House PAYE Payroll

Faststream’s in-house PAYE removes umbrellas from your chain altogether, simplifying compliance and eliminating umbrella-related transfer-of-liability risk.

✅ 25 years’ experience managing payroll for hundreds of contractors
✅ HMRC-aligned processes with clear audit trails
✅ No umbrella exposure in your supply chain
✅ Transparent pay & reporting for you and your contractors
✅ Simple contractor onboarding with dedicated support

​

Who Benefits

• Clients: Lower risk, cleaner governance, one accountable partner

• Contractors: Stable pay, statutory rights, full transparency

​

Take Action Before April 2026

Don’t wait until the reforms go live. Let’s make sure your payroll setup is future-proof.

Interested in discussing this further? Please share your details below​:

​