JSL Changes – What Contractors Need to Know
From 6 April 2026, new UK legislation called Joint and Several Liability (JSL) will come into effect for workers who are paid through umbrella companies.
These changes are part of the government's efforts to reduce tax avoidance and improve compliance within the temporary labour market.
Below is a simple guide explaining what this means for contractors working with Cromwell Medical Staffing.
Joint and Several Liability means that if an umbrella company fails to pay the correct PAYE tax or National Insurance contributions, other organisations in the supply chain could become responsible for those unpaid amounts.
In practice, this means HMRC may pursue the recruitment agency or end client if an umbrella company has not paid the correct tax.
Because of this, agencies and clients will need to ensure they only work with fully compliant umbrella companies.
The UK government is introducing these rules to tackle non-compliant umbrella company practices in the temporary workforce market.
Some providers have historically promoted arrangements designed to increase workers' take-home pay in ways that do not comply with tax regulations.
These arrangements can include:
While these schemes may seem attractive, they can lead to serious financial consequences if they are found to be non-compliant. The new legislation aims to improve transparency and accountability across the recruitment supply chain.
Yes, although the main legal responsibility sits with agencies and clients, contractors should still take care when choosing an umbrella company.
It's important to understand how your pay is calculated and processed.
If you work through an umbrella company, watch out for:
In most cases, compliant umbrella companies operate a standard PAYE payroll model, where tax and National Insurance are clearly deducted before you receive your pay.
Working with a non-compliant payroll provider can lead to several risks, including:
In some cases, contractors may face future tax reassessments where the correct deductions were not made.
At Cromwell Medical Staffing, compliance and transparency are a key part of how we support our healthcare professionals.
As the Joint and Several Liability rules come into effect, we will continue to work with trusted and compliant umbrella partners who operate standard PAYE payroll models.
Our priority is to ensure contractors can work with confidence, knowing their pay, tax, and employment arrangements are handled correctly and in line with HMRC regulations.
If you have any questions about umbrella payroll or the upcoming JSL changes, please speak to your Cromwell Medical Staffing consultant, who will be happy to help.
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