Umbrella reform is coming - and it’s not just an umbrella problem

Non-compliance in the supply chain won’t just be the umbrella’s problem.

The government’s consultation on this issue was clear: agencies and end-clients may find themselves jointly liable if they continue to use non-compliant or financially unstable umbrella providers.

What might change?

It’s expected that a statutory definition of an umbrella company will be introduced, making it harder to hide behind vague supply chain arrangements. Agencies may be legally required to verify the compliance of umbrella providers they work with. And in the event of wrongdoing, liability for unpaid tax or worker entitlements could fall directly on the agency or the end client.