HMRC plans mean recruitment agencies are now under greater scrutiny than ever when it comes to umbrella companies. The concept of joint and several liability is no longer just a legal technicality. It’s a direct risk to your business, and one that many agencies are unknowingly exposed to.
At Meades Umbrella, we’ve always put compliance first. It’s why we’re proud to be SafeRec accredited – giving our agency partners confidence that every payslip is independently audited and fully transparent.
But accreditation isn’t just about ticking a box. It’s about protecting your business from the growing risks in your supply chain.
What is joint and several liability?
In short: if you refer contractors to an umbrella company that fails to pay the correct tax or engages in non-compliant practices, your agency could be held liable for the unpaid tax – even if you weren’t aware of the breach.
HMRC is shifting responsibility away from the perpetrator and towards the supply chain. That means agencies need to prove they’ve taken proper steps to avoid risk, or potentially face penalties for someone else’s misconduct.
Why due diligence isn’t optional
Here’s the issue: most standard due diligence checks don’t get to the heart of what really matters.
The key questions are simple:
Has tax been correctly calculated on every payslip?
Has the correct amount been reported to HMRC via RTI?
Has that tax actually been paid over to HMRC?
Without independently verified answers to those questions, agencies remain exposed, even if they’ve ticked the usual boxes. In HMRC’s eyes, surface-level checks aren’t enough. What matters is evidence, visibility, and a partner who takes compliance as seriously as you do.
You need a clear, defensible process and partners who meet demonstrable standards of compliance.
Meades Umbrella: A Safe Choice for Agencies
We’ve built our umbrella service with compliance at its core. Run by qualified accountants and backed by the long-established Meades Group, we take our responsibilities seriously, and we make it easier for you to do the same.
✅ SafeRec Accredited – Every payslip independently audited
✅ Full transparency – No disguised remuneration or offshore models
✅ Qualified support – Operated by ACCA-registered professionals
✅ Contractor satisfaction – Fast, secure payments and complete financial support
When you choose Meades Umbrella you’ll know your reputation, and your contractors are in safe hands.
Get clarity on your compliance position
If you’re unsure how joint and several liability could impact your agency, or how to protect your business, let’s talk.
Book a free call with Paul to get expert insight into your current risk exposure and what steps you can take to strengthen your position.
📞 Call 01923 729516.