Published in July 2025 under the policy paper 'Umbrella companies — tackling non-compliance in the umbrella company market', legislation will be introduced in Finance Bill 2025-26 to amend part 2 of ITEPA 2003. The legislation will introduce a new chapter 11 into part 2 to make employment agencies or end clients joint and severally liable for any amount required to be accounted for under the PAYE provisions where an umbrella company forms part of a labour supply chain.
Further legislation will be introduced to amend section 4A of Social Security Contributions and Benefits Act1992 to provide HM Treasury with the power to make regulations imposing an equivalent joint and several liability for NIC purposes.
In short, Joint and Several Liability will allow HMRC to pursue an agency in the first instance for any payroll taxes that a non-compliant umbrella company fails to remit to HMRC on their behalf. The end client will be liable if contracting directly with an umbrella company.
Industry experts John Chaplin (Tax Partner, BDO) and Shaun Critchley (Chairman, ADVANCE) discuss what Joint & Several Liability is, how it may affect stakeholders within the contracting supply chain, and what you can be doing to manage risk.
View the trailer here
We are offering technical and tailored advice, workshops, client visits & support to ensure you and your clients understand the impact of the legislation changes expected over the coming months. Working with ADVANCE puts you in safe hands with our range of services and market leading solutions.