- 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.
Resources (click to open)
- Off payroll workforce tax and legal risk (Deloitte Dbriefs Webcast, 9 December 2025)
- Technical consultation on umbrella companies with draft legislation (HMRC, 21 July 2025)
- Future changes which impact the use of umbrella companies (Deloitte briefing, 7 February 2025)
- Future changes which impact the use of umbrella companies – what should you know and do next (Deloitte Dbriefs Webcast, 19 February 2025)
- Tackling tax non-compliance: umbrella company market (HMRC policy paper, 30 October 2024)
