You can switch to a compliant umbrella partner without disruption if you treat it as a controlled change, not a firefight. The right plan protects contractor pay, reassures clients and reduces Joint and Several Liability (JSL) exposure ahead of 2026.
Why switch now
The legislation puts more responsibility on the company closest to the end client, often the agency or MSP. That increases supply‑chain risk if an umbrella fails to run Pay As You Earn (PAYE) and National Insurance correctly. Clients will expect evidence of how you govern suppliers. Independent reporting across each payroll run, clear audit trails and current accreditations will become the baseline. If service issues or compliance red flags are already on your radar, moving early gives you time to switch cleanly and on your terms.
These steps build on the new 2026 legislation – learn what’s changing in our blog on umbrella legislation 2026
What “no disruption” actually looks like
No missed paydays. No surprise deductions. No unanswered contractor queries. A smooth switch is built on three pillars: clean data, clear communication and independent assurance. Assess your umbrella contractor base to establish the data of those that pose a risk, proactive messaging to contractors and new umbrella suppliers and post‑go‑live checks that prove money has been calculated and remitted correctly.
Your 30–60–90 day switching plan
Days 0–30: discovery and evidence
Map every contractor and assignment that will move, including rates, umbrellas used and contact details. Request current accreditations and audit evidence from potential partners, for example FCSA and SafeRec. Review sample payslips and RTI reports for itemised deductions, and confirm independent reporting is available on every payroll run so you can see PAYE and National Insurance reconciled and confirmed as paid to HMRC. Agree your change window, document data requirements and prepare contractor comms and FAQs.
Days 31–60: contracts and controls
Update supplier contracts to include right‑to‑audit, remediation steps and service levels for issue resolution. Train consultants on the switch process and likely questions. Communicate consistent contractor comms and deadlines.
Days 61–90: transition and hyper‑care
Execute the transition in a defined window. Provide a dedicated support channel for contractors during the first two pay cycles and ensure your new umbrella provides fast support for both you and your contractors. Complete a 30‑day post‑live assurance review, comparing payslips to RTI, and confirm PAYE payments to HMRC. Share the results with clients to demonstrate control and rebuild confidence where needed.
Non‑negotiables for a smooth switch:
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- Evidence before promises: insist on current accreditation, recent audit reports and working examples of independent reporting.
- Communicate early and often: tell contractors what is changing, why, what to expect and where to get help.
- Close the loop: run a post‑go‑live audit, track issues to resolution and share the outcomes with clients.
For more on selecting the right partner, see our guide on how to find a compliant umbrella company
Spot the red flags before you move
If a provider cannot produce itemised payslips, recent audit evidence, proof of PAYE remittance, or refuses right‑to‑audit clauses, pause. Frequent amended filings, split or confusing payslips and slow issue resolution are signs the operational reality will not match the sales pitch. Do not carry these risks into a new arrangement.
Our view
The JSL rules increase supply‑chain risk for agencies and MSPs, making documented due diligence and audit trails important to mitigate potential recovery of tax by HMRC. The safest path is a measured migration with independent reporting on every payroll run, backed by clear contractual controls and transparent communications. Start now, and you can upgrade compliance and service without disrupting pay.
Want a quick PSL health check or help planning a low‑risk switch with independent reporting baked in? We can support without disruption.
For a full overview of upcoming changes and guidance, visit our Umbrella Compliance Hub.
