Umbrella reform is coming and its not just an umbrella problem 182959662326
Published: 8-Jul-25
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 liableif 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 toverify the compliance of umbrella providersthey work with. And in the event of wrongdoing,liability for unpaid tax or worker entitlementscould fall directly on the agency or the end client.