The changes announced by The Chancellor to shift responsibility for the correct application and payment of PAYE for umbrella workers to the lead agency in the supply chain, followed by the ‘heads up’ on the direction of travel from HMRC that they are likely to use Joint and Several Liability to apply these changes, sign posts one of the biggest changes to hit the recruitment and intermediary sector for years.
The fine detail is yet to be released, although this now confirmed for 21st July in the form of Draft Legislation. Whilst this will be ‘Draft’, it is likely to provide the overall picture for the legislation that will take effect from April 2026. The detail behind the proposals is critical in establishing the market’s approach and how to provide the levels of protection that many will seek.
What is already clear, is that an entirely new approach will be required in all compliance standards; tweaking current processes will just not be an option.
Professional Passport has been working on this new approach for a considerable time and once the draft legislation is released, we aim to roll out our new approach to both agencies and providers. This will take compliance to the next level and provide levels of certainty not achieved by anyone else before.
At this stage, we are seeking to work with a select number of agencies to trial the systems before fully rolling them out. If this is something you feel would be of interest to you and put you and the business ahead of the curve then please get in touch with us as soon as possible, as there are limited spaces available on the trial.
In the first instance, send an agency membership request through and we will come back to you. If you are already a member, feel free to get in contact directly.
If you also tick the ‘Keep me up to date’ box, we will ensure you receive our planned communications on the changes as well as priority booking invitations for the roadshows we will be organising.
