
This briefing explains the draft Finance Bill’s joint and several liability for PAYE and NICs in umbrella arrangements, effective April 2026, placing recruitment agencies at risk even if they paid in full or relied on fraudulent documents. Agencies must audit partners, verify compliance evidence, strengthen contracts, and implement ongoing monitoring to avoid financial, legal, and reputational exposure.
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This article highlights how April 2026 joint liability rules will hold agencies accountable for umbrella tax failures, with no good-faith defence. To build resilience, recruiters must shift to real-time, automated auditing and continuous supply chain oversight.
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