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Why Many Recruiters Are Rethinking In-House Payroll

Why Many Recruiters Are Rethinking In-House Payroll

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

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

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When Strength is Show, The Message is Clear

When Strength is Show, The Message is Clear

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?

Global show strength

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.

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

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