The recruitment industry is facing a fundamental restructuring of supply chain responsibility with the upcoming April 2026 regulatory shifts. With the arrival of Joint and Several Liability (JSL), HMRC is moving to a strict liability model, meaning if an umbrella fails to pay the correct tax, that debt now moves up the supply chain: Umbrella → Agency → End Client.
At 3R, we believe that while these reforms present a challenge, they also offer a massive opportunity for differentiation. Agencies that lead with transparency and robust governance will naturally become the partners of choice for risk-averse end-clients
In this comprehensive video, our Managing Director, Dan Brogan, and Head of Risk & Compliance, Debbie Stock, discuss exactly what these changes mean for your recruitment business and how you can turn it into a strategic advantage.
Video breakdown:
👉 The Finance Act: What’s Changing in April?
Learn how the Joint & Several Liability (JSL) reforms are changing the tax liability responsibility within the supply chain and the real-world impact this has on your business continuity.
👉 Steps you can take to proactively protect your Agency
We’ve been speaking to our recruiters and here are some of the key actions Recruitment leaders are taking to prepare their agencies for the reforms – from speaking to experts and reviewing their supply chain to creating transparency for their end-client.
👉 Managing your End-Clients: Transparency as a USP
End-clients are already making changes to mitigate the risks posed by JSL. We discuss the shifting requirements you need to watch for and how to lead the compliance conversation, ensuring you remain a trusted partner.
👉 Behind-the-scenes at 3R
At 3R, we’ve been working closely with industry experts and accreditation bodies to create clarity for our business and our processes. Learn how we’re leveraging these insights to provide a seamless solution for our customers that minimises risk for their agency.
👉 How 3R is Preparing for the Reform
Here are some of the practical steps we’ve taken to prepare for the reforms. From educating our clients and tightening our umbrella PSL, to building the infrastructure to support a variety of JSL-compliant models. It’s about providing the flexibility and security you need to scale without friction.
How 3R supports you
At 3R, we take pride in staying ahead of risk and compliance on behalf of our recruiters. Our industry-leading Backoffice platform includes contractor payroll solutions and offers a PSL of accredited umbrella companies. Our Risk & Compliance team monitors this PSL and supports agencies with any umbrella concerns.
If you would like to learn more about how 3R helps agencies work compliantly with umbrellas, or you would like a demo of our technology, please get in touch.
