Umbrella Companies: tackling non-compliance in the umbrella company market
This measure introduces draft legislation to make recruitment agencies or end clients accountable for Pay As You Earn (PAYE) on payments to workers supplied through umbrella companies.
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Linked documents
- Policy Paper Umbrella companies — tackling non-compliance in the umbrella company market
- Bill Amendment Draft legislation (accessible version)
▤ Verbatim text from source document
This measure makes recruitment agencies accountable for PAYE on payments to workers supplied through umbrella companies.
If the labour supply chain has:
- more than one agency, the rules apply to the agency that has the direct contract with the end client to supply the worker
- no agency, the rules apply to the end client
This measure will have effect from 6 April 2026.