In anticipation of the New Year’s compliance special in The Global Recruiter e-magazine we ask three organisations to answer three questions:
Deb Murphy, Head of Operations, FCSA
Q: Do you think the proposed changes are fair and proportionate to the problem HMRC is trying to address?
A: There’s a balance to be struck here. Whether the changes feel ‘fair’ will depend on where you sit in the supply chain, but the principle is sound. The new rules should discourage agencies and end clients from working with non-compliant providers, which is ultimately in everyone’s interests, unless you’re a payroll pirate. When you only partner with organisations you can trust, and those organisations can evidence their compliance through things like FCSA accreditation, the overall risk drops significantly. What matters now is that the rules are applied proportionately and in a way that recognises the difference between good-faith operators and those who deliberately set out to avoid obligations.
Q2: What should recruitment companies do now to prepare?
A: Recruiters need to understand exactly who they are working with and insist on clear evidence of compliance throughout their supply chain. That includes checking that umbrellas are financially sound, transparent, and not extending credit they can’t realistically carry. End clients also need to be aware of who sits beneath them, including any connected entities that might create risk. Using established frameworks like FCSA Accreditation, Recruiter Partnership, and our End Client offerings, alongside technology like veriPAYE within Diligence Hub, gives agencies a reliable way to see the full compliance picture. This isn’t a box-ticking exercise, compliance is about genuine oversight, open communication, and working only with partners you would confidently stand behind.
Q: What do you think will be the overall impact on the use of umbrella companies?
A: In the long term, we should see more use of compliant umbrellas and less tolerance for payroll pirates. Combined with the upcoming changes to the Employment Rights Bill, it is in everyone’s interest to work with companies that understand, that have the knowledge, and that have the capacity to employ staff correctly. It’s about looking at the whole business: its trading history, financial resilience, customer service, willingness to be transparent, and the behaviours you see day-to-day. Recruiters and end clients will naturally gravitate towards providers who can demonstrate all these things, not simply assert them or rely on proving just one element. For example, payslip checking is crucial, but it needs to be part of a much bigger picture. Continuous improvement, open dialogue and reliance on proven behaviour will become the norm. Good umbrellas will thrive. Those unwilling to meet higher expectations will fall away and leave us with a fairer, more compliant sector.
