6 April has passed – JSL liability is now real
If your payroll partner can’t prove compliance, the risk sits with you
April 6th has now come and gone.
We are officially in the new world of Joint and Several Liability (JSL).
This means one thing very clearly – if an umbrella company in your supply chain cannot prove they are operating correctly and paying the correct PAYE and NIC to HMRC, the liability does not stop with them… it moves up to you!
This is no longer theoretical. It is live.
What you should now be demanding from your payroll partners
Every recruitment business should now have a clear compliance checklist. At a minimum, you should be able to evidence:
- FCSA Accreditation
- SafeRec Accreditation
- Full access to all current and historic payslips for your workers
- Back-end visibility of PAYE submissions to HMRC (RTI data)
- Back-end visibility of actual PAYE payments made to HMRC
If you cannot see it, you cannot prove it.
And if you cannot prove it, under JSL, you may be liable for it.
The old model is gone
Gone are the days of choosing an umbrella because:
- They offer the biggest rebate
- They take you to the best events
- They fund nights out or perks for the team
Those things are no longer a deciding factor.
Compliance is now the deciding factor.
Because the cost of getting it wrong is no longer commercial – it is financial liability.
What does that liability actually look like?
Let’s keep it simple.
- 50 workers
- £400 per week
- Over just 12 weeks
That’s £240,000 in gross pay moving through the supply chain.
If PAYE and NIC have not been correctly accounted for, the potential exposure can easily exceed £70,000+ in just that short period.
Now scale that across multiple clients, projects, or months.
This is how JSL risk builds – quickly and quietly.
Early warning signs are already here
We are only days into this new landscape, and we are already seeing umbrella companies entering administration.
That is exactly where the risk begins to surface.
Where New Red Planet fits in
At New Red Planet Limited, everything we do is built around transparency, compliance, and visibility.
Yes, we still enjoy spending time with our partners – whether that’s football, racing, rugby or the odd day out.
But that is a byproduct of strong, compliant relationships – not a substitute for them.
If you would like to understand how we provide:
- Full payroll transparency
- Real-time visibility of HMRC submissions and payments
- A compliant, future-proof payroll structure under JSL
then let’s have a conversation.
Because in this new world, what you can’t see can hurt you.
Find out more
If you would like to know more about New Red Planet Products or services, request an information pack by completing the quick form below