How Your Recruitment Agency Benefits from Using a Compliant Umbrella Company

How Your Recruitment Agency Benefits from Using a Compliant Umbrella Company

(Read time: 1 min)

Being a successful recruiter is no easy task.

In between taking and receiving calls, conducting interviews, making placements, and collecting payments, you’ve also got to make sure you’ve ticked all the necessary compliance boxes, for example collecting right to work documents, ensuring they’re being paid the National Minimum Wage and issuing contracts.

A number of these tasks are completed for you if your candidates use an umbrella company, but how else can engaging with compliant umbrella companies benefit you?

Sharing the burden

Where an umbrella company completes tasks such as the above, you can spend less time on administration. You won’t need to worry about when the workers are going to be paid, or how PAYE works, you can focus on finding suitable workers and placements and nurturing your relationships.

Ensuring compliance

With recent changes to legislation, agencies simply can’t afford to have non-compliant umbrellas in their supply chain. HMRC is clamping down on non-compliant models and those in the wrong will be subject to penalties. This means that recruitment agencies and even individual consultants who refer workers to non-compliant schemes could face fines.  By using compliant umbrella companies, such as those who appear on Professional Passports “approved supplier” list you can be reassured that necessary due diligence has been done.


By ensuring that your workers are paid through a compliant umbrella company you won’t have to update your processes when a change in law or best-practice occurs. A compliant umbrella will manage the change and provide you with the necessary information. An example is seen in the recent change to the law on payslips. A compliant umbrella will have spent time updating their software so that all their payslips contained the necessary information from April.

How Plus can help

At Plus we provide a cost-effective umbrella service comprising everything you would expect from an umbrella (and a few extra’s!).  All worker income is subject to PAYE and NICs and we’re Professional Passport accredited which means that all of our policies and procedures are HMRC-approved.

To find out more about Plus call us on 03333 110 222 or by using any of the methods on our “Contact Us” page.


*This document is not a substitute for specific legal, accounting or other professional advice or opinions on related matters and issues that arise and should not be taken as providing specific advice on any of the topics discussed.

The information contained herein has been prepared by using sources believed to be reliable. Whilst reasonable care has been taken to ensure that the facts stated herein are accurate, no representation or warranty, express or implied is made by Plus Payroll Services Limited, with respect to completeness, correctness, reasonableness or accuracy of any information and opinions contained herein.

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