In the run-up to April 2026 and the introduction of the upcoming Joint and Several Liability (JSL) rules, the new legislative landscape demands that umbrella companies take a more proactive, transparent approach to compliance.
While traditional accreditation routes, such as Freelancer & Contractor Services Association (FCSA) membership, offer a strong foundation, they’re no longer enough on their own. With the new JSL rules allowing HMRC to pursue tax and National Insurance Contributions (NICs) liability from the umbrella company and the agency, and in some instances, the end client, agencies need further reassurance that the correct levels of tax and NICs have been calculated and paid over to HMRC. Queue the introduction of real-time verification software.
In this article, we’ll explore how accreditation bodies and verification tools can work together to protect your agency, your contractors, and your reputation.
The role of accreditation bodies
Accreditation bodies, such as the FCSA, have long been regarded as the gold standard for umbrella company compliance. Their rigorous, independent audits assess providers against strict criteria covering:
-
Taxation and accounting practices
-
Employment law and worker rights
-
Operational and financial transparency
For recruitment agencies, working only with FCSA-accredited umbrella companies is a smart way to reduce risk. It shows you’ve taken proactive steps to verify compliance and uphold ethical standards across your supply chain.
The limitations of accreditation alone
While FCSA membership provides a strong baseline, it has its limits. Audits typically occur annually or biannually, which means:
-
Non-compliance can still arise between audit periods
-
Agencies may not see real-time evidence of what’s happening on the ground
-
There’s limited visibility into how each contractor is actually being paid
That’s where real-time verification adds a crucial second layer of defence.
The rise of real-time verification software
Verification software, such as SafeRec, is a compliance technology platform designed to verify umbrella company behaviour in real time. It works by auditing payslips directly, allowing agencies and contractors to:
-
See exactly what deductions are being made
-
Confirm correct tax treatment and take-home pay
-
Flag irregularities immediately
An automated audit trail gives you full visibility into every transaction that flows through your umbrella partners.
This not only protects your agency from hidden risks but also helps build trust in your supply chain.
Accreditations and real-time verification software are the perfect duo
Accreditations, such as the FCSA, ensures that an umbrella company has passed a high bar of compliance, and has robust policies and procedures.
Real-time verification software, such as SafeRec, monitors day-to-day behaviour and flags discrepancies as they happen.
This multi-layered compliance approach gives agencies the best of both worlds: strategic due diligence up front, backed by ongoing operational oversight.
In an era of increasing liability, you can’t afford to rely on trust alone. Technology provides the transparency and data that accreditations alone can’t always offer.
What your agency should do now to prepare for April 2026
We explain why waiting until April 2026 could leave your agency financially exposed in our previous article. So, our advice to agencies, if they haven’t already, is to act now. You should ensure your implementation plans are in place by March 2026.
If you haven’t yet started it’s not too late, providing you’re working with a provider that has the knowledge and experience to guide you through these changes.
You should be focusing your efforts on:
-
Reviewing and mapping supply chains.
-
Reviewing and continually monitoring due diligence processes and procedures.
-
Don’t forget about financial due diligence. You should be looking for a profitable business with a strong balance sheet, a positive working capital position, and low to no borrowing so they’re not vulnerable to interest rate changes.
-
Consolidating your Preferred Supplier List (PSL) to closely vetted, trusted and financially stable umbrella partners.
-
Putting in place processes to ensure only PSL approved Umbrella companies pay your agency workers.
-
Reviewing contractual indemnities weighed against the financial strength of your PSL partners.
If you would like further help and advice in regards to the JSL rules, or would like to discuss how best to switch your contractors to PayStream ahead of April 26, your Key Account Director is on hand to support you.
