JSL - FAQs for Independent Social Workers

1. What are the new rules about umbrella companies?

From April 2026, HMRC will no longer hold individual workers liable for unpaid PAYE/NIC if their umbrella company fails to pay. Instead, agencies and clients will bear responsibility.

2. Will this protect me from tax disputes?

Yes - the reforms are designed to prevent workers from being unfairly pursued for tax owed by non-compliant umbrella companies.

3. Do I need to change my umbrella company?

Not necessarily, but your agency may require you to use a vetted provider. It’s worth checking whether your current umbrella is on their approved list and starting a conversation with them if this isn't the case.

4. What should I look for in a compliant umbrella company?

• Clear payslips showing PAYE deductions
• Transparent contracts and employment terms
• No unexplained deductions or offshore arrangements
• Membership of professional bodies (e.g. FCSA)

5. What if I’m unsure about my current setup?

Speak to your agency or professional body. You can also ask your umbrella company for a breakdown of how your pay is calculated and taxed.

If you're still uncertain, contact us: info@swes.uk.

6. Will this affect how I’m paid?

Possibly. Agencies may tighten controls, which could lead to changes in payroll timing or deductions. However, the goal is to ensure fair, compliant pay.

7. Will this affect how much I’m paid?

Possibly, where umbrella services are made to prove their compliance through partnerships with 'compliance providers' to enable them to be an 'approved supplier' they may be forced to increase your weekly fee to cover that cost.

8. Can my organisation contract directly with an umbrella company?

Absolutely, SWES provides ethical and trusted umbrella services and there is no need to use an agency to enable you to work independently. We can work with your employer to manage all their contracts for independent / agency social workers.

If you have questions, please reach out for a chat, we'd be very happy to answer any questions you might have: info@swes.uk