Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her department has any plans to formally recognise not-for-profit umbrella models within the new regulations.

From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client business.

These rules apply to all umbrella companies, regardless of corporate structure. They do not change the amount that umbrella companies, including not-for-profit umbrella companies, have to account for under Pay As You Earn when they pay their employees. The government keeps tax policies under review. However, there are no plans to change the treatment of not-for-profit umbrella companies within these rules.