Are you ready for the Finance Bill 2025-26? At Futurelink Group, we’re here to guide you through the new umbrella company regulations, ensuring your payroll remains fully compliant and stress-free.
With HMRC targeting a £500 million tax gap caused by non-compliant umbrella companies, the upcoming reforms will reshape how contractors, agencies, and clients operate.
With 30 years in the industry, trust Futurelink Group to keep you ahead of the curve.
Key Areas We Will Cover
- Overview of the Finance Bill 2025-26 and its impact on umbrella companies
- Understanding Joint and Several Liability (JSL) and what it means for you
- How Futurelink Group’s compliant payroll solutions protect contractors and agencies
- Practical steps to stay compliant with the new rules
- Why Futurelink Group is your trusted partner for seamless payroll management
Introduction
Although still in draft form, the Finance Bill 2025-26 is set to take effect on 6 April 2026. The umbrella company sector faces significant changes designed to combat tax non-compliance, hence the proposed changes in legislation. At Futurelink Group, we understand the challenges these reforms bring for contractors, recruitment agencies, and end clients. With HMRC reporting £500 million lost to tax avoidance in 2022/23, the proposed rules introduce stricter accountability to protect workers and ensure a fair market.
This article, brought to you by Futurelink Group, explains the changes, their implications, and how our award winning payroll solutions can help you navigate this transition with confidence.
Understanding the Finance Bill 2025-26
What Are the Proposed New Umbrella Company Rules?
The Finance Bill 2025-26 introduces a legal definition of umbrella companies, clarifying their role as businesses employing workers to supply labour to clients. It targets non-compliant operators, such as those using mini-umbrella schemes, to close tax evasion loopholes. Key changes include:
- Joint and Several Liability (JSL): Recruitment agencies and end clients may be held liable for unpaid PAYE taxes or National Insurance Contributions (NICs) if an umbrella company fails to comply.
- Regulatory Oversight: From April 2027, umbrella companies will fall under the Employment Agencies Act 1973, with the Fair Work Agency overseeing compliance to protect workers’ rights, such as holiday pay.
Why These Changes Matter
The reforms aim to eliminate unscrupulous practices, ensuring contractors are not left with unexpected tax bills. For agencies and clients, JSL means greater responsibility to work with compliant payroll providers. At Futurelink Group, we’re committed to helping you stay compliant while maximising your take-home pay.
How the Rules Impact Contractors, Agencies, and Clients
Contractors
As a contractor, partnering with a compliant umbrella company like Futurelink Group ensures you’re protected from tax risks. Our PAYE Umbrella and PAYE Plus solutions guarantee accurate tax calculations, statutory benefits, and seamless payments, giving you peace of mind.
Recruitment Agencies
Agencies face increased liability under JSL. To mitigate risks, you should:
- Partner with established providers like Futurelink Group.
- Audit your Preferred Supplier Lists (PSLs) to ensure compliance.
- Use robust contracts to clarify tax responsibilities.
Our tailored payroll solutions, including PEO Outsource Payroll, help agencies streamline operations and boost profitability while staying compliant.
End Clients
Clients engaging directly with umbrella companies must verify compliance to avoid tax liabilities. Futurelink Group’s transparent payroll processes and accountancy services ensure you meet HMRC requirements without hassle.
How Futurelink Group Keeps You Compliant
At Futurelink Group, compliance is at the heart of everything we do. Our FCSA accreditation and SafeRec certification reflect our commitment to transparency and excellence. Here’s how we help you navigate the Finance Bill 2025-26:
- Robust Payroll Solutions: Our PAYE Umbrella, PAYE Plus, and CIS Payroll services ensure accurate tax compliance and maximise your earnings.
- Expert Accountancy Support: From VAT returns to tax planning, our accountancy services keep you compliant and tax-efficient.
- Transparent Processes: We provide clear payslips, regular audits, and access to HMRC’s Umbrella Company Pay Tool for full transparency.
- Dedicated Support: Our team, praised for professionalism and promptness, is always ready to address your queries.
As client Philip Parr shared, “Futurelink have removed all pressure regarding finances, hence I would highly recommend.”
Practical Steps to Prepare for April 2026
To ensure compliance with the new rules, take these steps:
- Choose a Trusted Provider: Select an established umbrella company like Futurelink Group to avoid risks associated with non-compliant operators.
- Verify Compliance: Check HMRC’s list of named tax avoidance schemes and confirm your provider’s PAYE processes.
- Update Contracts: Include clauses that hold umbrella companies accountable for tax compliance.
- Stay Informed: Use HMRC tools and consult with experts like Futurelink Group to stay ahead of regulatory changes.
Why Futurelink Group Is Your Ideal Partner
With over five years of trusted service and a 4.3-star rating from 54 reviews, Futurelink Group is the go-to choice for contractors and agencies. Our comprehensive services include:
- PAYE Umbrella: Hassle-free payroll with statutory benefits and pensions.
- CIS Payroll: Specialised solutions for Construction Industry Scheme contractors.
- Gross Payment Solution: Ideal for sole traders and directors of limited companies.
- Invoice Finance: Improve cash flow with our factoring solutions.
Client Daniel Beaton said, “Futurelink makes all my payments hassle-free. An absolute pleasure to deal with, very efficient and goes above and beyond.”
Conclusion
The Finance Bill 2025-26 marks a pivotal moment for the umbrella company sector, introducing stricter rules to ensure tax compliance and protect workers. At Futurelink Group, we’re ready to guide contractors, agencies, and clients through these changes with our compliant, transparent, and tailored payroll solutions. By partnering with us, you can focus on your work while we handle the complexities of compliance, ensuring a secure and profitable future.
Partner with Futurelink Group Today
Don’t let the Finance Bill 2025-26 catch you off guard. Join thousands of satisfied contractors and agencies who trust Futurelink Group for compliant payroll and accountancy services.
Visit Futurelink Group to explore our solutions or contact our team for personalised advice. Secure your financial future now!
Craig Moss
Craig Moss is a seasoned professional in the employment and recruitment industries, based in Kings Langley, UK. With over 30 years of experience, including a successful tenure as a central London realtor handling properties up to £3 million, he now leads an exciting management role at Futurelink Group. Specialising in compliant payroll solutions for contract recruitment, Craig helps clients increase margins by up to 30% while navigating complex legislation. His people-focused approach, honed through decades in sales and people management, ensures both recruiters and workers benefit from tax-efficient, compliant solutions. Passionate about building strong relationships, Craig thrives on delivering results that drive business success.
