What Our Clients Need to Know About the New Joint & Several Liability (JSL) Legislation Coming into Force on 6 April 2026 

From 6 April 2026, the UK government is introducing significant reforms to how tax compliance is managed within labour supply chains, particularly for contractors operating through umbrella companies. These changes are known as Joint and Several Liability (JSL), and they reshape who can be held responsible if an umbrella company fails to meet its tax obligations. 

As an Autotech Group client, whether you work with Autotech Recruit contractors or Autotech Academy interns, the most important thing to know is that HMRC cannot pursue your organisation for unpaid tax arising from an umbrella company we engage with. That responsibility sits with Autotech Group, not our clients. 

What Is Joint & Several Liability (JSL)? 

Under the new rules, if an umbrella company fails to pay PAYE tax, National Insurance, or the Apprenticeship Levy, HMRC can legally pursue another party in the supply chain for the full unpaid amount. This is a major shift from the previous model, where the umbrella company alone carried the liability. 

Industry guidance confirms that from April 2026, HMRC can recover unpaid tax from recruitment agencies, and in some cases, end clients, if an umbrella company fails to meet its obligations.  

What Does This Mean for Recruitment Agencies and End Clients? 

Under the new JSL rules: 

• Temporary recruitment agencies (like Autotech Recruit) are typically the first in line as the “relevant party” HMRC may pursue if the umbrella company defaults. 

• End clients only become liable in certain scenarios, such as when no agency exists in the supply chain or when the agency is offshore.  

• The responsibility sits on a strict liability basis, meaning HMRC can transfer the debt even if the agency carried out due diligence. 

Crucially: 
➡️ Autotech Recruit and Autotech Academy clients are not within scope of this liability when engaging contractors through us. We remain the relevant party, not you. 

How Autotech Group Is Protecting You 

Because these changes shift additional compliance responsibilities onto temporary recruitment agencies, we have taken proactive steps to ensure our entire contractor supply chain is fully secure. 

✔️ We only work with trusted, accredited umbrella partners 

All umbrella companies we engage with have: 

• Demonstrated strong compliance processes 

• Provided external accreditations 

• Offered full visibility of their PAYE, NI, and HMRC submission processes 

• Evidenced timely payment of all tax liabilities 

This aligns with industry recommendations urging agencies to use only fully compliant and accredited umbrella partners to mitigate risk under the new JSL regime.  

✔️ Our checks are ongoing 

The umbrella companies we work with continue to provide transparent reporting so we can verify compliance throughout our partnership. 

✔️ Your organisation remains protected 

Whether you’re: 

• Taking a contractor from Autotech Recruit, or 

• Hosting an intern through Autotech Academy, 

you cannot be held liable for any tax shortfall involving umbrella companies we engage. We retain responsibility within the supply chain. 

Does JSL Change How You Work With Autotech Recruit or Autotech Academy? 

In short: No. Your relationship with us and your responsibilities remain the same. 

This legislation affects our internal compliance processes, not your day-to-day operations. 

A Clear Message for Our Clients 

You can continue to rely on Autotech Recruit and Autotech Academy to supply compliant, properly engaged, fully supported contractors and interns. 

We have taken every step to ensure: 

• Full protection from JSL impact 

• Strong umbrella company governance 

• Transparent PAYE and NIC processes 

• Zero disruption for your business 

Need More Information? 

If you have any concerns or want a deeper explanation of how it works in practice, please contact us here