Mid-week Matters, From CMR – Issue 14 The ONLY Bi-Weekly Newsletter For People In The Umbrella Industry

It’s been a busy few days at CRM HQ.

Yesterday, we hosted our first webinar with Neil Carberry, CEO of the REC, to unpack Joint and Several Liability (JSL), and what it really means between now and April 2026.

Great turnout. And yes, I forgot to hit “Start meeting” for the first 15 minutes. No, Neil hasn’t invoiced me… yet.

And, if you’re reading this between the hours of 11:34 and 13:29, I’ll be on the train down to London (of course it’s the Contractor Awards!).

For those who didn’t make it to the webinar yesterday, I thought I’d give you a detailed wrap up of what we covered, minus the tech drama.

Enjoy.

The Headline = Treat JSL as direct liability.

HMRC will approach it that way. Your due diligence must be proven, not promised. JSL is trying to shift accountability higher up the supply chain, to stop non-compliance and protect workers.

All good things.

But here’s the catch. It also risks punishing the good guys unless it’s paired with proper regulation and enforcement.

Key Practical Advice from Neil

Act like the liability is already yours. That’s how HMRC is likely to treat it. Map every umbrella you work with. Understand the time delay between your payment to them and their payment to HMRC. That gap is your exposure.

Due diligence can’t be a one-time document request anymore. It needs to become a process of ongoing verification. That includes:

• Auditable payslips and RTI feeds
• Real-time ledger data
• Exception reports
• Open-book visibility where appropriate
• Verification via FCSA, Professional Passport, or SafeRec-type monitoring

The tools exist. What’s changing is how seriously they’ll be expected.

What About Insurance?

Some brokers, like Marsh Commercial, believe the risk is insurable, but pricing, wording, and claim timelines will all depend on what’s in the Finance Bill.

If you’re exploring cover, think about how fast a policy will pay out versus how long you can afford to absorb hat cash-flow risk.

Will Agencies Bring Payroll Back In-House?

Some already are.

But in-house payroll doesn’t remove the JSL risk. In fact, depending on how the final legislation is worded, it might shift liability onto clients or MSPs. It also doesn’t address every concern agencies have around margin, speed, or scale.

Umbrella usage isn’t disappearing. It’s evolving.

The Direction of Travel

By May 2026, we’ll likely see more monitoring, early-stage insurance products, and much better awareness of what that risk window looks like between payment and HMRC reconciliation.

This isn’t a cliff-edge. It’s an acceleration.

We expect to see consolidation among umbrella providers, a higher bar for compliance evidence, and more scrutiny on how data flows through the chain.

Quick Reminder: JSL Is Not Regulation

The JSL rules are not the same as full umbrella regulation.

The Employment Rights Bill does set the stage for the new Fair Work Agency, which is due to launch in shadow form in April 2026. That’s the first formal step toward an independent umbrella regulator.

Neil’s view was clear: we should regulate first, then enforce. But in reality, HMRC prefers certainty, and JSL gives them a straight route to recovering revenue. So, it’s coming regardless of where the regulator is in its timeline.

Awards Season: CMR is Out and About

Today is the day where the contracting world swaps Teams calls for tuxedos.

We’ll be at the Contracting Awards, cheering on our clients and clapping a bit too loudly for anyone with half-decent branding. If you’re there, say hello (Table 3).

Also, if you’re wondering, yes, our pre-drinks with My Digital and Thrivr are full.

Final Word

This month’s been a proper mix of celebration and scrutiny.

JSL is the biggest structural change we’ve seen in years, and the pressure it creates isn’t theoretical. It’s financial, reputational, and legal. What stood out from the webinar was that the best firms aren’t panicking. They’re planning.

If you’re one of them, and you’re reviewing umbrellas, building your internal strategy, or looking to test the market, now’s a good time to talk.

Thanks for reading. See you at the awards. Or in the bar beforehand. Or on the next webinar.