Angela Rayner Resigns – When the Greater Good Becomes a Personal Crossroads

by Steve McDermott | Sep 9, 2025 | All Articles, Blog, HMRC, News, Recruitment Businesses, UK Employers

Angela Rayner Resigns – When the Greater Good Becomes a Personal Crossroads

Angela Rayner’s Resignation and the Leadership Lessons for Recruitment

This weekend, Angela Rayner resigned as Deputy Prime Minister and Labour’s Deputy Leader after being found in breach of the ministerial code.

The issue stemmed from underpaying around £40,000 in stamp duty on an £800,000 property.

Her resignation prompted Prime Minister Keir Starmer to launch a swift Cabinet reshuffle, appointing David Lammy as Deputy Prime Minister and reallocating key roles to trusted Labour allies.

Angela Raynor resigns due to stamp duty tax

Why This Matters for Recruitment and Organisational Leaders

Loyalty vs. Institutional Integrity

Starmer’s decision to accept Rayner’s resignation prioritised government ethics over political loyalty.

For organisations, this mirrors the challenge of protecting values and integrity even when it risks disrupting team unity.

Leadership Under Scrutiny

Rayner’s misstep reinforces how much public trust and perception matter.

For senior leaders – and for recruitment professionals making hiring or promotion decisions – the personal conduct of individuals can impact organisational reputation as strongly as professional performance.

Recruitment and HR Leadership Angle

In recruitment and HR, leaders often face a crossroads: balancing empathy for long-standing colleagues with the broader responsibility to uphold organisational values.

These moments define leadership culture and long-term credibility.

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When Strength is Show, The Message is Clear

by Steve McDermott | Sep 3, 2025 | All Articles, Benefits, Blog, Employee Rights BIll, HMRC, Legislation, News, Recruitment Businesses, UK Employers, Umbrella Legislation

When Strength is Shown, The Message is Clear

Global Signals of Strength

This week, Putin and Kim joined Xi and other Eastern leaders at China’s Victory Day celebrations. The event was a carefully staged display of unity and power aimed squarely at the West. Whatever your politics, the symbolism was clear: we’re aligned, and we’re ready if challenged.

Parallels at Home

Closer to home, I can see a similar pattern in our industry. The new umbrella legislation comes into effect in April 2026 and organisations like FCSA, REC, APSCo, and HMRC now stand shoulder to shoulder.

Together, they are sending a clear message to non-compliant umbrella companies: the era of looking the other way is over.

Resolve in Compliance

Global leaders show resolve through public alignment. Our sector’s leading bodies now do the same. They are ready to engage, act, and enforce compliance.

The Question Ahead

Will non-compliant companies adapt? Or will they keep running until HMRC arrives, only to vanish in a puff of smoke — as has happened before?

The Real Cost of Non-Compliance

When that happens, HMRC loses unpaid tax. But recruiters also suffer. Many have already paid wages to umbrellas, only to see the funds disappear.

In too many cases, recruiters pay workers twice – or worse, workers go unpaid.

Higher Stakes from April 2026

From April 2026, the risk increases further. Agencies could also be left covering unpaid monies owed to

HM Revenue & Customs. That threat should sharpen every recruiter’s focus on choosing compliant partners.

Why Unity Matters

A united stance protects everyone. Compliance is more than ticking boxes. It safeguards workers, recruiters, and the integrity of the supply chain.

Act Now, Not Later

Don’t wait until April 2026 catches you off guard. Book a call with New Red Planet today and let’s make sure your business is ready for the changes ahead.

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Information and Training for recruiters on the Umbrella Legislation 2026

by Steve McDermott | Sep 3, 2025 | All Articles, Benefits, Blog, Employee Rights BIll, HMRC, Legislation, News, Recruitment Businesses, Talent Management, UK Employers, Umbrella Legislation

Information and Training for recruiters on the Umbrella Legislation 2026

Preparing Recuiters for Upcoming Leglislation Changes

You could have the best recruiters in the game… But if they don’t understand the new rules, or why working only with fully compliant, FCSA-accredited umbrella companies matters… your business is at risk.

And when things go wrong, it won’t be the recruiter who pays the price.

– It’ll be the company’s reputation.
– It’ll be the manager who gets the sack.
– And it’ll be the company picking up the unpaid NIC bill to HMRC.

This is why recruiter education is non-negotiable. They need to know:

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What the legislation means in practice

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Why compliance protects contractors and the business

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How their choices today prevent legal, financial & reputational damage tomorrow

April 2026 isn’t far away. Ignorance won’t be an excuse.

Get in Touch

If you’re a recruitment business owner or manager and want literature, questionnaires, or tools to educate your team, reach out to Steve and the team at New Red Planet Ltd — a DUAL Accredited FCSA Member.

The real question:
Are your recruiters ready?

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The Ripple Effect of Umbrella Credit Terms

by Steve McDermott | Sep 3, 2025 | All Articles, Blog, Employee Rights BIll, HMRC, Legislation, News, Recruitment Businesses, UK Employers, Umbrella Legislation

The Ripple Effect of Umbrella Credit Terms

Weighing Up The Risk of Credit Terms Offered By Payroll Companies

Many umbrella payroll companies offer credit terms to recruitment agencies, allowing wages to be paid upfront while agencies settle invoices later.

While this may appear convenient, it creates significant systemic risk. If just one or two agencies default on payment, the umbrella shoulders the financial loss.

Given the tight margins most umbrellas operate on, this can quickly lead to insolvency.

New Legislation

From 6 April 2026, under new legislation, recruitment agencies will face joint and several liability for PAYE and NIC compliance failures if an umbrella in their supply chain collapses.

This means that if an umbrella fails because another agency defaulted, all other agencies using that umbrella could still be held responsible for unpaid tax liabilities – even if they always paid their invoices on time.

The Domino Effect

1. One Agency’s Default Affects Everyone

· If one recruitment client does not pay, the umbrella absorbs the shortfall.
· When credit is extended across multiple agencies, the risk multiplies – it only takes one or two failures to destabilise the entire umbrella.

2. Umbrella Insolvency Creates Tax Exposure

· Once the umbrella goes bankrupt, HMRC can pursue other agencies in its supply chain for any unpaid PAYE/NIC.
· Agencies that were not involved in the original default may still face substantial unexpected liabilities.

3. Double Risk for Agencies

· Agencies that lose a trading partner through umbrella insolvency also risk significant HMRC enforcement action.
· This creates a domino effect where one agency’s failure cascades across multiple others.

Recommended Actions

· Avoid umbrellas offering extended credit terms – they introduce collective risk beyond your control.
· Assess the financial stability of umbrella partners regularly, especially those providing credit to multiple agencies.
· Protect your own business by insisting on transparent, immediate payment terms that reduce exposure to other agencies’ defaults.
· Prepare for April 2026 by reviewing all umbrella relationships and ensuring you are not tied to high-risk funding models.

In Summary

Umbrella credit terms may seem attractive, but they create a shared risk environment.

If one or two agencies fail to pay, the umbrella can collapse – leaving every other recruitment agency in the chain exposed to HMRC tax recovery under the 2026 legislation.

The safest approach is to work only with umbrellas that operate on secure, immediate payment models, protecting both your cash flow and compliance position.

If you have any questions, please don’t hesitate to contact us using the form below, or speak to one of our experienced team by calling us today on 0161 713 1730.

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Umbrella Company Legislation 2026 – Preparation and Compliance Guide

by Steve McDermott | Sep 1, 2025 | All Articles, Benefits, Blog, Employee Rights BIll, HMRC, Legislation, News, Recruitment Businesses, UK Employers, Umbrella Legislation

Umbrella Company Legislation 2026 – Preparation and Compliance Guide

Time is ticking – are you ready for change?

As huge football fans here at New Red Planet, there’s always a little buzz of excitement as the clock ticks down towards 7pm tonight and the transfer deadline.

Clubs at all levels are currently scrambling around, trying to finalise their squads before the transfer window slams shut.

Every decision made now will shape the season ahead – whether it’s strengthening weak spots, adding depth, or making bold moves to stay competitive.

Recruitment is no different. With the April 2026 umbrella legislation on the horizon, agencies should already be thinking beyond the “window” we’re in today.

The time to prepare isn’t when the rules land – it’s now.

Just as managers are:

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Anticipating challenges before they hit

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Balancing squads for resilience

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Building strategies for long-term success

Recruiters need to be:

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Reviewing supply chains and umbrella partnerships

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Stress-testing compliance processes

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Preparing for a very different playing field in 2026

How we can help

That’s where conversations with New Red Planet come in.

As one of only a handful of FCSA-accredited providers with dual accreditation across both umbrella and PAYE payroll solutions, we can give agencies the confidence, compliance, and flexibility they’ll need to stay competitive when the new rules arrive.

When the whistle blows on legislation, those who’ve prepared early will be in the strongest position. The question is – are you planning for the season ahead, or leaving it until the window shuts?