Recruiters have long been seen as the gatekeepers in talent engagement, advising clients on the most appropriate engagement models, suggesting market-aligned pay rates, and benchmarking benefits to attract top-tier candidates. But when not everyone plays by the same rules, fairness becomes an issue.
Some recruiters have been able to gain a commercial edge by partnering with non-compliant umbrella companies. These umbrellas often promise workers unrealistically high take-home pay, sometimes as much as 85%, while also offering recruiters lucrative referral payments. The result? A recruiter can present clients with what appears to be a more attractive deal, despite it being built on shaky legal and tax ground.
The forthcoming umbrella legislation is set to change this. By introducing joint and several liability for unpaid tax and National Insurance contributions, the Government is effectively putting the spotlight on the entire supply chain, recruiters included.
This gives compliant recruiters a clearer voice. They can now point out to clients that working with agencies offering suspiciously generous terms could leave them directly liable for tax avoidance further down the chain. It’s not just about money, it’s about reputational risk and the potential breakdown of trusted partnerships.
Going forward, clients will need recruitment partners who understand and navigate these risks, those who are confident in recommending compliant engagement models, supporting fair and lawful rates for inside IR35 roles, and ensuring employment benefits align with legal requirements.
At Brookson, we help fill in the gaps. Our team of qualified solicitors provide IR35 guidance and legal support. Our umbrella services are fully accredited and employment law compliant, supporting both CIS and non-CIS workers. And through Brookson Financial, we offer FCA-regulated advice to help contractors manage their pensions and personal finances.
By helping recruiters stay compliant, protect their clients, and support their workers, we let them get back to what they do best, delivering expert advice and placing talent with confidence.
Want to understand how these changes affect your agency — and how Brookson can support you?
Get in touch with our team for tailored advice on staying compliant, protecting your clients, and strengthening your supply chain.
Email us at: sales@brookson.co.uk or call: 0800 230 0213
Let’s build a stronger, more compliant future together.
