New HMRC umbrella legislation came into force on April 2026 which means that if your recruitment agency uses a third-party umbrella company for PAYE workers, HMRC now has the right to pursue unpaid tax directly from you if the umbrella fails to pay. The liability does not disappear, it travels up the chain until someone settles it which could eventually land on your customers.
The problem is that lenders are reacting with blanket restrictions across the entire recruitment sector and withdrawing invoice finance, regardless of how individual businesses are actually structured. If your facility is under review, it may have nothing to do with your real risk position.
Our latest guide sets out what has changed with the legislation, who is genuinely affected and what your options are if your funding is being restricted.
