What has changed
From 6 April 2026, responsibility for getting PAYE right on umbrella company workers moves up the supply chain to the recruitment agency, or the end client where there is no agency.
Who it affects
Recruitment agencies, end clients and contractors working through umbrella companies.
What you should do
Know exactly who is in your labour supply chain and check that PAYE is being handled correctly, as HMRC can pursue the agency or end client for shortfalls.
Our view
This shifts real risk up the supply chain. Any business engaging contractors should review its arrangements before April.
Common questions
Who does this affect?
Recruitment agencies, end clients and contractors working through umbrella companies.
What should I do about it?
Know exactly who is in your labour supply chain and check that PAYE is being handled correctly, as HMRC can pursue the agency or end client for shortfalls.
Can TaxTune help me with this?
Yes. Tell us your situation through the quote builder or book a free call, and we will explain exactly what it means for you and handle it if you would like.
Related services and guides
Payroll service Accountants for contractors Construction & CIS