The PSL checklist: governing umbrella partners under JSL

Your PSL isn’t just a supplier list. It’s a practical way to keep your labour supply chain running smoothly and transparently. 

For agencies and MSPs, the umbrella partners you approve influence everything downstream: contractor confidence, client assurance, and how easily you can oversee what’s happening once contractors are on assignment. 

From April 2026, umbrella legislation will introduce joint and several liability (JSL) for PAYE tax. While liability can still arise if something goes wrong in the supply chain, good governance helps you maintain visibility, reduce surprises and act quickly when issues need resolving. 

This checklist focuses on practical checks you can run on your umbrella PSL to ensure partners are transparent, contractor-friendly, and operationally easy to work with. 

1) Can they evidence independent verification?

Independent verification helps you understand how an umbrella operates in practice, rather than relying solely on internal claims or marketing statements. 

Ask for: 

• Evidence of independent accreditation (and what it covers) 

• Confirmation of independent auditing (who carries it out and how often) 
• The latest certificates or reports you’re allowed to retain for governance purposes 

Well-run umbrellas are used to these requests and can respond clearly. 

2) Do you have visibility of PAYE reporting and HMRC submissions?

Under JSL, agencies need confidence that PAYE obligations are being met consistently. 

Pressure-test whether your umbrella partners can provide: 

• Regular summaries of PAYE and NIC liabilities across your contractor population 

• Evidence that Real Time Information (RTI) submissions have been made 
• Confirmation that PAYE payments have been successfully cleared with HMRC 

Ideally, this information should be accessible without ad hoc requests, forming part of a standard governance pack or reporting cycle. 

3) Are payslips clear and easy to understand?

Payslips play a major role in the contractor experience. When they’re clear, questions are minimal. When they’re not, recruiters often end up fielding avoidable queries. 

Review a small sample for: 

• Itemised payslips showing PAYE and National Insurance clearly 

• A single, consolidated payslip rather than multiple documents 
• Clear explanations for deductions, alongside straightforward pension and statutory payment processes 

Clarity here reduces admin, improves trust and keeps conversations focused on delivery. 

4) Can they provide information quickly when needed?

Good partners make oversight easy. When a client asks a question or you need to review something internally, timely access to information makes a real difference. 

Confirm they can provide: 

• A defined evidence pack (what’s included and how often it’s refreshed) 

• Reporting that supports oversight without exposing sensitive data 
• A clear audit trail that supports review and follow-up where needed 

Speed and consistency matter more than volume. 

5) Is the pay model simple to explain?

A well-structured pay model should be easy to describe and easy for contractors to understand. 

Pressure-test: 

• What’s deducted and why (margin, employer costs, pension, etc.) 

• How pension contributions and statutory payments are handled 
• What the process is if something needs correcting, and how quickly that happens 

Straightforward explanations build confidence on all sides. 

6) Do your contracts support practical oversight?

Contracts don’t replace day-to-day governance, but they should make it easier. 

Minimum expectations include: 

• Clear right-to-audit provisions 

• Defined evidence-provision obligations and response times 

• Agreed responsibilities for resolving issues if they arise 
• Clear assignment schedules and onboarding or handover arrangements 

When expectations are clear, relationships tend to run more smoothly. 

7) Do they have a real escalation route?

Knowing who to contact – and when – saves time. 

Look for: 

• Named contacts for routine queries and escalations 

• A clear route for urgent pay-related issues 
• Contractor support that resolves questions directly, without unnecessary recruiter involvement 

Effective escalation keeps small issues from becoming distractions. 

Five quick checks you can run this week

• Request current accreditation and independent audit confirmation from each umbrella 

• Review 5–10 recent payslips for clarity and consistency 

• Ask what’s included in their standard PAYE and compliance reporting 

• Confirm right-to-audit and issue-resolution clauses are in place across contracts 
• Test the escalation route with a real query and note response time and quality 

What good transparency looks like in practice 

Some umbrellas are responding to JSL by increasing proactive visibility for agencies and MSPs. This includes: 

• Regular PAYE summaries showing liabilities across all umbrella contractors 

• Evidence of RTI submissions and confirmation that HMRC payments have cleared 

• Centralised access to payslips and supporting documentation by tax month 
• Consistent monthly confirmations to support audit trails and client assurance 

This level of transparency gives agencies greater confidence in their supply chain as JSL approaches. A well-governed PSL won’t eliminate risk entirely, but it will make it more manageable.