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Tackling tax non-compliance — the Brabners article every recruiter should read.

Tackling tax non-compliance — the Brabners article every recruiter should read.

Law Specialists Issue Warning Regarding Non-Compliant Umbrella Companies.

A recent feature in The Recruiter by law specialists Brabners has underlined the growing risks facing recruitment agencies that use non-compliant umbrella companies. As the sector evolves these risks are becoming harder to ignore.

HMRC estimates that more than £500 million in tax was lost in 2022/23 through umbrella non-compliance. As a result the Government will introduce new joint and several liability rules from April 2026.

These will allow HMRC to pursue agencies and end clients for unpaid PAYE if any umbrella within their supply chain fails to meet its responsibilities.

The Autumn Budget is now just 15 days away. By the afternoon of 26 November, we will know the final details of the Umbrella Legislation and the Employee Rights Bill.

Recruitment agencies should be using this time to review their supply chains and ensure every partner they work with meets the highest compliance standards. 

At New Red Planet (NRP), we already have those safeguards in place. As one of the UK’s leading FCSA-accredited umbrella organisations, we help recruiters streamline, protect and future proof their businesses through a comprehensive range of compliant workforce solutions.

Solutions:

👉 Umbrella PSL
👉 Bureau (in-house PAYE setup)
👉 Outsourced payroll bureau (for recruiters who want internal control with external support)
👉 CIS and Limited Company solutions
👉 Back Office Support
👉 PSL and ASL advice and setup
👉 HR and tax advice
👉 Full accountancy support

This means NRP are in the very envious position of being able to manage as much or as little as you wish in the build-up to, during, and after the legislation is passed and becomes a new reality for everyone on 6 April 2026.

In short our model provides the flexibility agencies need as the industry moves into a stricter compliance era.

Our integrated approach provides transparency, efficiency and peace of mind at every stage of the labour supply chain. As a result, it protects agencies and end clients well ahead of the 2026 reforms.

To discuss how NRP can strengthen and future proof your payroll and compliance setup, contact our team today for a no-obligation chat.

Contact Steve McDermott if you would you like to know a little more about the risk and benefit of outsourcing you contractor payroll, and have No-obligation chat:

steve.mcdermott@newredplanet.com or 07854 881 220 or 0161 713 1730

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Why Many Recruiters Are Rethinking In-House Payroll

Why Many Recruiters Are Rethinking In-House Payroll

New Legislation Leaves Recruitment Companies With a Choice To Make

With the ERB and Umbrella legislation due to take effect in April 2026, many recruitment companies are reviewing whether to bring payroll in-house or continue to partner externally.

It’s a logical question, but one that often overlooks the real operational cost of running payroll yourself.

An in-house setup means employing payroll and compliance staff to handle everything from worker onboarding to RTI submissions, HMRC reporting, pensions and holiday accruals. Add the cost of cover for annual leave, sickness and staff turnover, plus ongoing training and system maintenance, and it becomes a year-round management task that quickly drains resources.

That’s where New Red Planet Ltd makes the difference.

We provide a fully compliant, FCSA-accredited PAYE payroll infrastructure that sits neatly behind your brand. You retain control and visibility over your workers, while we handle the day-to-day payroll and compliance processes.

What you get:

  • A ready-built payroll team, so there’s no need to recruit or manage internal staff.

  • Consistent cover, with no disruption during holidays, sickness or busy periods.

  • Operational efficiency, with systems, insurances and processes already in place.

  • Future-proof compliance aligned with the ERB and Umbrella reforms coming next year.

  • Optional 24/7 payroll support for time-critical assignments.

In short, you keep the control of an in-house model without the cost and resource pressure of running one yourself.

Want to see how this would work for your setup?
Get in touch for a no-obligation chat.

Contact Steve McDermott if you would you like to know a little more about the risk and benefit of outsourcing you contractor payroll, and have No-obligation chat:

steve.mcdermott@newredplanet.com or 07854 881 220 or 0161 713 1730

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Why Using NRP Costs You Nothing and Protects and Keeps you Compliant

Why Using NRP Costs You Nothing and Protects and Keeps you Compliant

NRP Compliance Series – Protecting Construction and Civil Engineering Firms from Hidden Payroll and Employment Risks

Why Using NRP Costs You Nothing and Protects and Keep Your Business Compliant.

Partnering with NRP gives you full control and manages risk, with no added cost. It allows you to keep your labour flexible while meeting HMRC and employment standards.

No cost to your business

Many construction and civil engineering firms are surprised to learn that using NRP is completely free to the end client.
There are no fees, no hidden deductions, and no management charges. The workers who operate through NRP cover a small weekly CIS margin, which also provides them with self-employed insurance cover, including employers’ liability, public liability, and professional indemnity.

This means you can move your entire workforce to a fully compliant and insured CIS structure at zero cost to your business (and in many cases reduce cost).

What we take care of

When you work with NRP, we manage:

  • CIS SDC and self-employed questionnaire
  • All CIS verification and monthly submissions
  • PAYE and tax reporting where required
  • Holiday pay and statutory record management
  • Pensions auto-enrolment (where applicable)
  • Insurance cover for every self-employed worker
  • Employment and compliance documentation
  • Weekly invoicing and payment to each worker
  • Payroll and management for your internal full-time staff, ensuring consistency across your entire workforce
  • Ongoing updates on HMRC and employment law changes

Everything is managed from start to finish. You do not need internal payroll staff, cover for holidays or sickness, or worry about statutory employer costs.

One invoice, full control

You receive a single weekly invoice covering all your workers and internal staff.
NRP processes all payments, deductions, and records, giving you full transparency and complete peace of mind.

The result

Your workforce remains flexible, compliant, and insured. Your business stays fully protected from HMRC or tribunal exposure. You save time, money and administration while removing unnecessary risk.

NRP is FCSA-accredited, meaning our CIS and payroll solutions meet the highest standards of compliance and worker protection in the UK.

If you currently pay self-employed sole traders directly, moving them to NRP’s CIS model is the safest and most efficient step you can take this year. It reduces risk, cost and resource, and is fully managed from start to finish.

Leave your details HERE for a call back. 

Contact Steve McDermott if you would you like to know a little more about the risk and benefit of outsourcing you contractor payroll, and have No-obligation chat:

steve.mcdermott@newredplanet.com or 07854 881 220 or 0161 713 1730

Get In Touch

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Employment Law Exposure – When Self-Employed Workers Start to Look Like Employees

Employment Law Exposure – When Self-Employed Workers Start to Look Like Employees

NRP Compliance Series – Protecting Construction and Civil Engineering Firms from Hidden Payroll and Employment Risks

Post 3: Employment Law Exposure – When Self-Employed Workers Start to Look Like Employees

Many firms assume that if a worker is a self-employed sole trader, they cannot claim employment rights. That assumption has cost businesses thousands in tribunal claims.

The legal background

A well-known example is the Pimlico Plumbers Ltd v Smith [2018] UKSC 29 case.
Gary Smith worked for six years under a self-employed contract. He wore the company uniform, used a branded van, and worked fixed hours. When his engagement ended, he claimed unfair dismissal and holiday pay.

The Supreme Court ruled that he was a worker, not genuinely self-employed, because the company controlled how and when he worked.

This case confirmed that contracts alone do not define employment status. The day-to-day reality does.

What that means for your business

If your sole traders are directed, managed, or restricted in how they work, they could later claim for holiday pay, sick pay, or other worker rights. Even one successful claim can set a costly precedent.

The hidden risk

Tribunals assess working practices, not paperwork. If your managers set start times, approve time off or allocate specific jobs, it starts to look like employment.

How to protect yourself

When those same individuals are engaged through NRP’s CIS model, they remain self-employed but under a compliant structure.
NRP handles CIS verification, contracts, and payments, creating a clear separation between your company and the worker.

This protects your business from employment law claims while keeping the flexibility and cost-effectiveness of a truly self-employed workforce.

CASE STUDY – Pimlico Plumbers Scenario

Next up – Post 4: Why Using NRP Costs You Nothing and Provides Protection and Compliance

 

Contact Steve McDermott if you would you like to know a little more about the risk and benefit of outsourcing you contractor payroll, and have No-obligation chat:

steve.mcdermott@newredplanet.com or 07854 881 220 or 0161 713 1730

Get In Touch

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HMRC Investigations – Why One Small Mistake Can Open Every Door

HMRC Investigations – Why One Small Mistake Can Open Every Door

NRP Compliance Series – Protecting Construction and Civil Engineering Firms from Hidden Payroll and Employment Risks

Post 2: HMRC Investigations – Why One Small Mistake Can Open Every Door

When HMRC finds an irregularity in labour payments or status checks, it rarely stops there.

How it starts

It might begin with something minor. A sole trader’s tax return doesn’t match your records, or a missing verification raises a flag. Once that happens, HMRC may request information on every individual you’ve paid.

What happens next

They may review contracts, invoices and working arrangements to decide whether those sole traders were genuinely self-employed. They can also contact workers directly to confirm how the relationship operated day to day.

If HMRC believes control or dependency exists, it can reclassify those workers as employees and issue a compliance notice.

The knock-on effect

An investigation can quickly expand to include PAYE, VAT, Pensions Auto-Enrolment or even directors’ personal tax affairs. In some cases, businesses have also lost CIS Gross Payment Status, which can damage cash flow.

How to reduce your exposure

When workers are engaged through NRP, all verification and compliance checks are handled under a CIS structure managed by NRP.
We ensure accurate submissions, provide a complete audit trail, and maintain transparent records that satisfy HMRC scrutiny.

Your workers stay self-employed, your projects continue without disruption, and your business remains fully compliant.

CASE STUDY – False Self-Employment in the construction industry

Next up – Post 3: Employment Law Exposure – When Self-Employed Workers Start to Look Like Employees

 

Contact Steve McDermott if you would you like to know a little more about the risk and benefit of outsourcing you contractor payroll, and have No-obligation chat:

steve.mcdermott@newredplanet.com or 07854 881 220 or 0161 713 1730

Get In Touch

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