The upcoming joint and several liability legislation (JSL) has made one thing clear: agencies can no longer outsource responsibility by outsourcing payroll. If your umbrella partner is proved to be non-compliant, the liability could transfer to you. Here are five questions every agency should be putting to their umbrella providers right now.
1. Are You Independently Assessed?
Self-regulation means nothing in a JSL world. Independent assessment by a recognised body like FCSA provides third-party verification that an umbrella company meets defined compliance standards.
2. Can You Demonstrate Real-Time PAYE Compliance?
Not a certificate from six months ago. Not a self-declaration. Agencies need verifiable, up-to-date evidence that PAYE and NICs are being calculated and paid correctly on every payslip, every week. Tools like veriPAYE exist specifically to provide this level of assurance through independent payslip auditing.
3. How Do You Handle Holiday Pay?
With the Fair Work Agency soon enforcing holiday pay recordkeeping requirements, umbrella companies need robust systems for accrual, calculation, and transparent presentation on payslips. Ask to see how holiday pay is itemised and what records are maintained.
4. What Happens When Something Goes Wrong?
Compliant operators have clear escalation processes, error correction procedures, and transparent communication with agencies when issues arise. Non-compliant operators go quiet. Ask about their incident handling and how they notify agency partners of problems.
5. Can I Access Compliance Data On Demand?
If HMRC contacts you tomorrow, can you produce evidence of your due diligence by the end of the day? If the answer is no, you have a problem. Diligence Hub gives agencies a centralised, always-accessible record of their compliance checks across every umbrella partner.
Master your agency’s risk profile. Evidence every check at diligencehub.co.uk
