The Government promised that the direction of travel would be joint and several libility – and that is what was delivered in the draft Finance Bill. The legislation is contained in the new ITEPA 2003 Part 2 Chapter 11 ss 61Y–61Z1.
This clause will have effect in relation to payments made to umbrella company workers on or after 6 April 2026 so it is not retrospective. These new rules apply to the agency that has the direct contract with the end client to supply the worker (first agency). Where there is no agency this responsibility falls to the end client.
The defintion of ‘umbrella company’ is quite wide and there is a potential that it could include the employment business that employs the worker without an actual umbrella company in the chain. If this isn’t intentional it is likely that the definition...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
The Government promised that the direction of travel would be joint and several libility – and that is what was delivered in the draft Finance Bill. The legislation is contained in the new ITEPA 2003 Part 2 Chapter 11 ss 61Y–61Z1.
This clause will have effect in relation to payments made to umbrella company workers on or after 6 April 2026 so it is not retrospective. These new rules apply to the agency that has the direct contract with the end client to supply the worker (first agency). Where there is no agency this responsibility falls to the end client.
The defintion of ‘umbrella company’ is quite wide and there is a potential that it could include the employment business that employs the worker without an actual umbrella company in the chain. If this isn’t intentional it is likely that the definition...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.tmb-editorspic.jpg?sfvrsn=c9a7a0cc_1)
