UK Umbrella Company Changes from 6 April 2026

Introduction

From 6 April 2026, the government is introducing new rules for umbrella companies. These changes are designed to reduce tax non-compliance and make sure contractors are paid correctly through PAYE.

As your recruitment agency, we want to make sure you understand what’s changing — and reassure you about what it means for you in practice.

What’s Actually Changing?

The biggest change is around who’s responsible if tax isn’t paid correctly.

Under the new rules:

- Umbrella companies still run payroll and PAYE as normal

- If something goes wrong, HMRC can now also hold the recruitment agency responsible

- If there’s no agency involved, responsibility may sit with the end client

For contractors, the key takeaway is that there’s more oversight and accountability across the supply chain.

What Does This Mean for You as a Contractor?

The day-to-day way you’re paid shouldn’t change. You’ll still:

- Be paid through PAYE

- Receive payslips showing tax and NI deductions

- Have employment rights through your umbrella company

The difference is that agencies and clients will be doing more checks behind the scenes to make sure everything is compliant, which helps reduce the risk of problems later on.

How We’re Supporting You

We’re reviewing our umbrella partners carefully to make sure they meet the new standards ahead of April 2026. This means:

- Working only with compliant umbrella companies

- Keeping payroll arrangements clear and transparent

- Helping you understand your pay and deductions

If you ever have questions about your payslip or umbrella setup, we’re here to help.

Final Thoughts

The umbrella company changes coming into force on 6 April 2026 are good news for contractors. They’re designed to improve transparency, reduce tax risk, and create a fairer system for everyone involved.

We’ll continue to keep you updated as the changes get closer, and make sure you’re supported every step of the way.