What You Need to Know About the New Umbrella Company Regulations (April 2026)

Understanding the upcoming compliance changes and their impact on the employment agency supply chain The Government has confirmed that new legislation targeting umbrella companies will come into effect in April 2026, following years of scrutiny and consultation. These changes are designed to address long-standing issues in the umbrella market – including non-compliance, tax avoidance, and worker exploitation – and will significantly affect the employment agency supply chain, particularly those engaging contract workers via umbrella arrangements. In this blog, we explain what the new regulations involve, what they mean for recruitment agencies, end clients, and contractors, and how your organisation can prepare in advance.