From April 2026, the UK's contingent labour market will undergo a significant change as Joint and Several Liability (JSL) legislation comes into effect. Once introduced, recruitment agencies will become responsible for ensuring that any umbrella companies they engage correctly calculate, collect and pay all PAYE tax and National Insurance Contributions (NICs). Agencies will also become jointly and severally liable with the umbrella companies for any miscalculations or underpayments.
In a recent HMRC webinar on JSL, one attendee asked a critical question: If an umbrella company falsified proof of PAYE payments to HMRC, would the agency still be liable?
HMRC's answer was unequivocal: Yes. There will be no statutory excuse.
The transparency recruitment agencies need
This upcoming change means agencies must be absolutely certain their umbrella partners are calculating, submitting, and paying the correct amounts of PAYE and NICs. But without independent verification, how can that confidence be achieved?
The answer is transparency, and that's precisely what SafeRec umbrella certification provides.
How SafeRec protects recruitment agencies
At Champion Contractors, we recognised immediately that JSL would increase the expectations agencies rightly place on their umbrella partners. Fortunately, due to our continued commitment to compliance and transparency, we had already secured SafeRec certification. Saferec's independent verification standard provides total visibility into payroll compliance and payments to HMRC.
Through API integration with our Octopaye payroll software, SafeRec automatically audits every payslip we produce in real time. It then independently verifies that:
- The payslip data issued to workers matches the RTI submissions made to HMRC, and
- All declared taxes have been paid in full, confirmed via direct checks against our HMRC account each month.
Once verified, SafeRec generates immutable, automated compliance reports that are sent directly to our agency partners and their end clients. These reports give recipients clear, independent proof that every payment and submission has been made correctly.
Peace of mind through independent verification
For recruitment agencies, this means complete transparency, zero uncertainty, and total peace of mind. You'll always have clear evidence that your umbrella partner is acting compliantly, not just saying it.
Working with Champion Contractors means working with a SafeRec-certified and FCSA-accredited provider that prioritises compliance, transparency, and partnership. When JSL comes into force, our agencies will already be protected, with real-time proof that PAYE and NICs have been accurately calculated and promptly paid to HMRC.
To find out how Champion Contractors and SafeRec can safeguard your agency's reputation and eliminate compliance risk, get in touch with the team today on 0161 703 2549 or at info@championcontractors.co.uk