Your preferred supplier list is a start. It’s not a record of umbrella company due diligence for agencies.
Most recruitment agencies have an approved list of umbrella companies. The problem isn’t the list itself. It’s what the list doesn’t show: whether those suppliers were compliant when you last placed a worker through them, and whether you have the evidence to prove you checked.
Umbrella company due diligence for agencies needs to go beyond a name on a spreadsheet.
What a Proper Vetting Process Looks Like
Start with accreditation. FCSA-accredited umbrella companies are independently assessed against strict compliance standards covering payroll accuracy, worker rights, and statutory obligations. That independent assessment is the foundation your supply chain should be built on.
FCSA accreditation tells you a supplier has been independently assessed to a high standard. Your job as an agency is to document that you’ve verified that accreditation, and when. A live, dated compliance log is what demonstrates due diligence. Verifying accreditation status and recording it at a specific point in time is the evidence HMRC expects to see.
The Evidence Your Agency Needs to Hold
If HMRC or a client asks whether your umbrella suppliers were compliant at the time of an engagement, you need to show:
- Current accreditation status and when you last verified it
- A log of compliance checks over time, not just a current snapshot
- Payslip accuracy evidence showing workers are being paid correctly
- A documented process for reviewing and, where necessary, removing suppliers
Due diligence is an ongoing process. Your records should reflect that.
Keep Your Umbrella Company Due Diligence for Agencies Live
Diligence Hub centralises your umbrella company due diligence in one place. veriPAYE sits inside the platform to verify payslip-level compliance, so your records show not just accreditation status but what’s actually happening with worker pay across your supply chain.
Umbrella company due diligence for agencies used to mean a preferred supplier list and a phone call. In 2026, it means a live, evidenced compliance record.
Find out how Diligence Hub works at diligencehub.co.uk.
