The Finance Bill Is Coming. Is Your Supply Chain Ready?
Imagine waking up to a tax bill for thousands of pounds. Not because you failed to pay your taxes, but because a recruitment agency three steps down your supply chain didn’t pay theirs. It sounds like a nightmare scenario, but with the new Finance Bill on the horizon, it is becoming a very real possibility for businesses across the UK.
The Landscape is Changing
For years, many businesses have operated under the assumption that if they pay an agency invoice, their liability ends there. If the agency uses a shady umbrella company or an offshore payroll scheme to cut costs, that is their problem, right?
Wrong.
The government is cracking down on tax avoidance in the labour market. The introduction of “Joint and Several Liability” in the upcoming legislation is a game-changer. It effectively means that HMRC can look up the supply chain to recover unpaid tax and National Insurance contributions. If the agency you use (or the umbrella company they use) disappears or fails to pay, HMRC could come knocking on your door to settle the debt.
What the Government Says
The risks associated with non-compliant umbrella companies are well documented. According to guidance on GOV.UK, businesses must be increasingly vigilant about who is paying their workers and how. The government is actively advising organisations to secure their supply chains against tax avoidance schemes, noting that relying on a third party’s assurance is no longer enough to protect you from penalties.
The Pure Staff Difference
At Pure Staff, we decided long ago that we would not gamble with our clients’ safety. We don’t use umbrella companies. We don’t engage with offshore intermediaries.
We operate a 100% in-house PAYE model. This means:
Our workers, our contracts. Every worker is contracted directly to us.
We pay the tax. Our in-house payroll team calculates and pays all PAYE and National Insurance directly to HMRC.
Zero risk. Because there is no third-party payroll provider, and because of the way we directly engage with our workers, there is no “gap” in the supply chain where liability can fester.
Why It Matters
In this new legislative era, “cheap” recruitment is often the most expensive choice you can make. A slightly lower hourly rate from a non-compliant agency could cost you your reputation and your bottom line later down the road.
We offer you the ultimate luxury: peace of mind. You can focus on your operations, knowing that your temporary workforce is fully compliant, legal, and paid correctly.
Don’t wait for a letter from HMRC to review your supply chain. Switch to a partner that puts your protection first.
