How can I de-risk my Agency from Joint & Several Liability?

As a 'Relevant Party' in the regulations, this is the critical step. Make sure you have assessed your supply chain or any PSL exceptions you may have - this is where your risk may be higher.
If you have exceptions with obscure or un-regulated umbrellas, take steps to move all workers away to PSL providers.
If you sit atop a multi tier agency supply chain - do you know how they engage workers via umbrella companies (and potentially other methods?).
Consider mandating use of your PSL for any supplying agency, and if so, plan on how to police this moving forward

Only draw your PSL from FCSA accredited umbrella providers to ensure the highest standards of compliance.
FCSA is very much the most comprehensive audit in the market looking not just at payslips & tax compliance but all the other aspects of Umbrella compliance:, including:
- AWR
- Conduct Regs
- Holiday Pay
- Other employment rights & protections
- Onboarding processes
- Contracts
- VAT
- Insurance and many more

A strong balance sheet is imperative to provide confidence that any contractual indemnities offered are capable of being honoured.
Cash poor umbrella businesses are unlikely to stick around if errors are made in PAYE calculations that result in JSL indemnities being triggered.
Umbrella company ownership should also be transparent - you want to know who you are dealing with.

Most supplier contracts with compliant umbrella companies already include indemnities for PAYE & NICs as well as all other employment related claims.
Look to legal advisors or industry bodies (REC, APSCo) for updated indemnity clauses to protect you from JSL for PAYE/NICs.
NASA are exploring terms with our own advisors.

We anticipate payslip verification to become a requirement for PSL inclusion for most agencies/MSPs to support visibility of the correct PAYE calculations being made.
We strongly recommend our agency partners require either of the main software products as opposed to mandating just one of them.

Whilst an FCSA assessment confirms this annually, mitigating the risk of JSL is to prove that all PAYE & NICs due to HMRC by the umbrella has been settled.
NASA will on a monthly basis securely share access to a PAYE compliance pack which includes statements from HMRC for PAYE, NICs, VAT & Corporation Tax.
As a large employer, NASA undergo an audit by HMRC directly on items such as PAYE/NICs, Employment Duties, VAT, CT and corporate governance. The audit is wide reaching and HMRC provide an audit report with a risk scoring. This audit will also be available to our agency partners via this online secure compliance pack.

With Joint & Several Liability for PAYE applying to Agencies, MSPs and End Clients - depending on the nature of the supply chain - from April 2026, we've some up with some practical steps which will de-risk you from JSL applying.