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