On the contrary, despite the list 'naming and shaming' schemes by 'umbrellas' that underpay tax, JSL, which is also concerned with the underpayment of tax, will merely complement it, the advisers believe.
Effective from April 2026, JSL is similar to the list, insofar as it makes umbrellas' clients liable where the brolly's PAYE and NICs payments to HMRC fall short.
JSL makes another party liable for missing tax
But Joint and Several Liability (JSL) simply makes "another party liable for missing tax," says Tom Wallace of HMRC dispute firm WTT Group.
"That does not mean that workers may not be liable for any amounts that remain unpaid by either the umbrella or the agency/end-client.
"This is because, while it is the employer's obligation to deduct and account for the correct tax to HMRC.
"And the employers are primarily liable for any failure -- along with the relevant party for JSL purposes -- there are still circumstances where unpaid determinations can be transferred to the contractor if the right conditions are met."
HMRC's naughty list will still serve as a useful resource, post-JSL
The HMRC dispute's firm head of tax investigations, Mr Wallace concluded that the HMRC naughty list is not going anywhere as a result:
"Therefore, the list [will] still serve as a useful resource [even once JSL is introduced from April 6th 2026.]"
Umbrellas dissolved or phoenixed, frustrating HMRC's efforts
Historically, HMRC's recourse for unpaid PAYE and NICs where an umbrella company was involved in the supply of labour was with the umbrella.
"That was the case —the umbrella was the only party on the hook — unless certain specific deeming provisions applied," says law firm Chartergates.
"But HMRC often found this [recourse] tricky, as many umbrellas dissolved or 'phoenixed' before liabilities could ever be collected."
Shift in responsibility
The law firm observes that since April 2010, 'naming and shaming' has been used to deter further engagement by contractors of the listed 'umbrella companies.'
"But recovery [by HMRC] has remained limited," Chartergates says.
"The extension of liability to clients, proposed by HMRC and due to come into force in April 2026, means umbrella companies and 'purported' umbrella companies that fail to pay PAYE and NICs over to HMRC pose a direct financial risk to their clients, such as agencies and end-clients.
"This shift in responsibility highlights HMRC's intent to hold the supply chain accountable, making compliance not just an umbrella company issue, but a matter of financial and reputational prudence for all parties involved."
Tightening deterrence and enforceable recovery
Naseerah Mussa, legal consultant at Chartergates, reflected to ContractorUK:
"So as such, rather than replacing public exposure under the 'naming and shaming' programme, we envisage joint and several liability will sit alongside it — tightening HMRC's approach through both deterrence and enforceable recovery."
Chris Bryce, chief executive of the Freelancer & Contractor Services Association (FCSA), agrees.
JSL will make payroll pirates' lives more difficult
He all but characterised JSL as the 'belt,' if the 'braces' is the naughty list (formally known as the "Current list of named tax avoidance schemes, promoters, enablers and suppliers").
Mr Bryce told ContractorUK: "JSL, which [from April 2026] makes employment businesses and, in some cases, end-hirers, jointly liable with the umbrella for PAYE taxes, will go some way to ensuring that employment businesses carry out full and accurate due diligence on their umbrella providers. And this, in turn, should make life difficult for payroll pirates."
Most of the named and shamed pass themselves off as a brolly
Five so-called 'payroll pirates' have been newly 'named and shamed' by HMRC since ContractorUK's last reported the listees (here on July 31st, when the Revenue declined to publish a list of compliant umbrellas, despite being invited to).
The five are — AIT Umbrella Ltd; PAY APL Ltd, Real Payments Ltd, and Regis Ltd (all four named on Aug 14th), as well as Endeavour Services Ltd (named on September 25th).
"While the HMRC list of tax avoidance schemes is not solely for umbrellas, it is true that the majority listed…are operating some form of disguised remuneration scheme and passing it off as an umbrella company to attract workers into them," says WTT's Tom Wallace.
Just because it's not listed doesn't mean it is HMRC-approved
A former HMRC official, Mr Wallace continued to ContractorUK: "[With or without JSL] the list is useful with the usual caveat that just because a scheme is not listed it does not mean that HMRC will not challenge it or approve it.
"Strong due diligence is still required to know all parties in the supply chain, and ensure the correct tax is collected from the right people."
