- On 30 October 2024, the government published a policy paper titled Tackling tax non-compliance: umbrella company market, outlining its intention to introduce legislation which will change who has responsibility to account for PAYE where an umbrella company is used in a labour supply chain to engage a worker.
- A technical consultation with draft legislation was published on 21 July 2025.
- Legislation for the changes is included in the Finance Bill 2025-26 currently before Parliament.
- The proposed changes could have wide-ranging consequences for the flexible labour market following the reform of off-payroll working (IR35).
- Timing: Changes to umbrella company rules are expected to take effect from 6 April 2026.
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