Umbrella Company Changes
What you need to know
If you’re a teacher, teaching assistant, or education professional currently being paid through an umbrella company, there are some important changes on the horizon that could affect how you’re paid. We want to make sure you’re fully informed ahead of these updates.
From 6 April 2026, new legislation will come into force across the recruitment sector. These changes place greater responsibility on agencies like Athona Education to ensure that any umbrella companies in the supply chain are fully compliant with UK tax law. The aim is to better protect workers and ensure transparency.
Why is this changing?
HMRC has been increasing its focus on umbrella company arrangements. Across the sector, there have been cases of non-compliant pay models, disguised remuneration schemes, and incorrect application of PAYE and National Insurance.
In some situations, this has left workers unknowingly exposed to tax risk.
The April 2026 legislation is designed to close these gaps and bring greater accountability to how education professionals are engaged and paid.
What does this mean for you?
Under the new rules, agencies must take greater responsibility for ensuring compliance. This includes:
- Correct application of PAYE and National Insurance
- Full transparency of payslips and deductions
- Prevention of tax avoidance schemes
- Clear and auditable payment processes
It is important to understand why this matters. Under the new legislation, responsibility for ensuring PAYE is correctly operated sits across the supply chain and is a legal requirement rather than a choice.
If an umbrella company fails to meet its obligations or were to cease trading, HMRC can recover any unpaid tax from the agency or the end client, such as a school or academy. In practice, this means that organisations engaging temporary staff could be left facing unexpected tax liabilities, even if the issue originated elsewhere.
The aim of these changes is to reduce that risk by improving oversight and making sure everyone involved in the process is properly accountable from the start.
Our approach at Athona Education
At Athona Education, your protection comes first. In response to these changes, we are encouraging all education professionals to move to PAYE.
Being paid PAYE through Athona means:
- No umbrella company fees impacting your take home pay
- Transparent and easy to understand payslips
- Full compliance with HMRC regulations
- Confidence that your pay is being handled correctly
You can still work with multiple agencies and choose PAYE with Athona, giving you flexibility without added cost.
Approved umbrella providers
- If you would prefer to continue using an umbrella company, we work with a select group of compliant providers:
- Epayme Limited
- Generate FS
- Numbermill Limited
- Workwell Solutions Limited
All of these providers have been reviewed to ensure they meet strict compliance standards.
What do you need to do?
If you are already working PAYE with us, there is nothing you need to do.
If you are currently using an umbrella company, a member of our team will be in touch to support you with your options ahead of April, including moving to PAYE if that is the right choice for you.
We’re here to help
We know that pay arrangements can sometimes feel complex, and we want to make this as straightforward as possible.
If you have any questions or would like to talk through your options, our team is here to help.
You can call us on: 01277 245840 or email education@athona.com.
Do you know someone who would be perfect working in education? Click here for more information on our refer and earn scheme.
