Umbrella Compliance Hub
- Explore Sapphire’s resource hub for recruiter compliance resources, practical checklists and sector insights. You’ll find short how-to articles, downloadable PSL templates and FAQs that help you act now and stay audit-ready.
Contractor Census 2025
The latest independent view of contractor sentiment. What’s changing in 2025 - and how agencies and MSPs can respond on pay, experience and compliance.
Download The Census
FAQs
FCSA accreditation shows an umbrella provider meets defined compliance, financial resilience and governance standards. Working with accredited partners reduces risk and gives agencies clearer evidence for PSL decision-making. Read more: How to find a compliant umbrella company (and what to avoid)
Liability can sit across the supply chain, which means agencies, umbrella companies and sometimes end clients may be pursued for unpaid tax. Effective due diligence and documented PSL processes are essential.
Look for third-party accreditation, transparent payslip auditing, real-time reporting and proof of secure payroll processes. Request SafeRec or similar audit evidence and check financial resilience. Learn more in our Ultimate Guide.
Start by mapping suppliers, verifying accreditations, requesting audit logs, and setting minimum contractual controls. Use a standard checklist, run a prioritised supplier review and update your PSL governance. Read more: What to expect in 2026 and what to do now
The 2026 legislation introduces tax rules that increase supply-chain liability for unpaid PAYE and National Insurance. It raises the standard for due diligence and requires agencies to demonstrate robust controls when selecting umbrella partners. Read more: Umbrella legislation: what to expect in 2026 and what to do now
For more information download our The Ultimate Guide to Umbrella Legislation Changes
Sapphire provides audited payroll services, transparent payslips, real-time reporting via SafeRec and proven onboarding processes that form clear due-diligence evidence for PSLs. We support PSL audits and advisor-ready documentation. Switching umbrella partners without the pain
What the changes mean for recruiters
Increased Liability
From April 2026, the company closest to, and holding the contract with, the end client can be held jointly and severally liable for unpaid PAYE and NIC where an umbrella sits in the supply chain.
Supply chain risk and controls
The JSL rules increase supply chain risk, making documented due diligence, independent reporting and clear audit trails essential to mitigate potential recovery of tax by HMRC.
Maintaining compliance
Those that act early with more rigorous checks, reporting and audit trails for supplier management, will maintain compliant contractor supply and demonstrate the due diligence clients will come to expect.
Reputational risk for pay issues
Contractor pay problems quickly erode trust with clients and candidates, and weak controls lead to client escalation and operational distraction.
The Ultimate Guide to umbrella legislation changes
Your 90 day switching plan
We’ve worked with recruiters for over a decade, so we know how to make compliance seamless. Our process combines accredited controls, transparent reporting and technology to reduce your liability and keep contractors paid on time.
What the 2025 Census reveals about recruiter readiness
92% of agencies now operate a PSL.
Only 19% feel fully informed about new reforms.
30% expect umbrella usage to increase by 2026.
65% of agencies actively review and update their PSL
What sets Sapphire apart
- Preferred supplier to many of the UK’s largest recruitment agencies and MSPs
- One of the few providers to have both FCSA and SafeRec certification
- Transparent reporting, with monthly HMRC dashboard updates for PAYE payments
- Top five market share for Umbrella/CIS in the UK
Financial stability from organic growth, with up to date financials and management information on request - Thousands of positive reviews on TrustPilot and Google from your contractors
- Blending the very best of people, expertise and technology to provide best in class services
Thousands of positive reviews from your contractors
Contact Us
Need help reviewing your PSL or switching providers? Our compliance specialists are here to help with onboarding support and tailored compliance consultations. Contact us below or book a quick call.
