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Umbrella Engagements No Longer Available ⛱️ 🇬🇧

The option for freelancers to set themselves up with an umbrella company on the Worksome platform is no longer available

Written by Tobias Dilling
Updated today

What has changed?

Umbrella company engagement is no longer available as a business entity option for new bookings on the Worksome platform. Workers can no longer select “Umbrella company” when setting up or updating their UK business entity for future contracts.

Why has this changed?

The UK is introducing new Joint & Several Liability (JSL) rules from April 2026.

Under these rules, parties in a labour supply chain may be held jointly and severally liable for unpaid PAYE and National Insurance where umbrella companies are used.

To reduce supply chain complexity and limit exposure under the new framework, Worksome has simplified the available engagement options.

What happens to my current umbrella contract?

If you are currently engaged via an umbrella company:

  • Your existing contract can continue until its agreed end date.

  • No changes apply to your current active booking.

However, “Umbrella company” option will not be available for any new bookings after this change takes effect.

What are my available business entity type options?

For future bookings, you can select one of the following UK business entity types:

  • PAYE via Worksome - engage under a PAYE arrangement facilitated directly by Worksome. There is no fee charged to you for this setup.

  • Personal Service Company (PSC) - engage via your own Limited Company.

  • Sole Trader - register and engage as a Sole Trader.

These are the available options for receiving payment through Worksome.


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