Magna Flex

24/03/2026

New blog in our Joint and Several Liability series!

What happens if an umbrella company doesn’t pay its PAYE or NICs? It’s a situation that can create unexpected risks for agencies and businesses in the supply chain.

In our latest article, we explain:

• Who could be held responsible
• Why this matters for your business
• How you can protect yourself

If you work with umbrella companies or within labour supply chains, this is well worth a read.

Check it out here: https://magnagroup.co.uk/what-happens-when-an-umbrella-company-fails-to-pay-paye-nics/

For recruiters and construction businesses, umbrella companies are often a critical link in the labour supply chain. They simplify payroll, ensure compliance, and reduce administrative burden.

06/03/2026

New Blog in Our Joint and Several Liability Series

We’re pleased to share the fourth instalment in our Joint and Several Liability blog series:

“HMRC’s Goals Behind Introducing Joint and Several Liability.” - https://zurl.co/3TaJL

In this post, we take a closer look at why HMRC introduced Joint and Several Liability rules, the issues they were designed to address, and what this means in practice for businesses and directors.

Understanding the reasoning behind these rules can help businesses stay informed, manage risks more effectively, and avoid unexpected tax liabilities.

Read the latest blog and learn more about the thinking behind these important measures.

05/03/2026

Who Is the “Relevant Party” in Joint and Several Liability, and How Does Liability Flow?

Part 3 in blog series on Joint and Several Liability.

Who is the “Relevant Party” in Joint and Several Liability, and how does liability flow through a supply chain?

In the third blog of our series, we break down this key concept and explain why it matters for businesses managing workforce supply chains and payroll.

If you work with umbrella companies or have them within your supply chain, this is an important read.

Read the latest blog now. https://zurl.co/sSWKM

In construction and labour supply chains, risk rarely sits in one place. Projects move fast, multiple entities collaborate, and payment structures can be complex. When something goes wrong, such as unpaid taxes, unpaid wages, regulatory breaches, or contractual defaults, the concept of joint and sev...

03/03/2026

Changes to CIS are Coming This April!
The Construction Industry Scheme (CIS) is evolving, and April 2026 brings critical changes that could reshape how contractors and subcontractors manage payroll, tax reporting, and compliance. If you’re in construction or work with subcontractors, ignoring these updates could cost your business time, money, and peace of mind.

What’s Changing?

1. Simplified payment thresholds: New rules for deducting tax at source, impacting both personal and company subcontractors.

2. Real-time reporting: More detailed data sharing between contractors and HMRC, including digital payment tracking.

3. Tighter compliance checks: Increased scrutiny on payments, with new penalties for errors or late filings.

4. Expanded subcontractor verification: Enhanced checks on status certifications and deductions.

Why This Matters for Your Business?

Non-compliance risks penalties, cash-flow delays, and project disruptions. For subcontractors, miscalculations could mean unexpected tax liabilities or stalled payments. The key? Proactive preparation.

How We’re Helping Clients Navigate the Shift:

As a payroll partner that lives and breathes CIS compliance, we’re already prepping for 2026. Here’s how we’ll keep your business compliant and confident:

• CIS-specific payroll solutions: Tailored to the construction sector’s unique needs.
• Real-time reporting tools: Seamless integration with HMRC’s digital systems.
• Dedicated CIS advisors: On-hand to guide contractors and subcontractors through every step.
• Pre-2026 readiness audits: Identify gaps in your current processes before the deadline.

Book a call with our expert team today to discover tailored solutions for your unique needs!
https://zurl.co/mOe2Z

03/03/2026

Are you prepared for Joint and Several Liability?
If you have an Umbrella Company within your supply chain, Joint and Several Liability (JSL) is coming! Ensure your business is prepared and follow our blog series on JSL!

With JSL on the horizon, it’s more important than ever to understand what this means for your business and your supply chain.

To help you stay informed and confident, we’ve published two new blogs:

What is Joint and Several Liability?
https://zurl.co/DMT7I

What is a Purported Umbrella Company?
https://zurl.co/O7vLE

In these articles, we cover in detail what is changing, what the risks look like, and the practical steps you can take now, to protect your organisation.

Compliance doesn’t have to feel overwhelming. With the right information and support, you can stay ahead of the changes and focus on running your business.

If you’d like to learn more, head to our website or get in touch with our team https://zurl.co/F9T6N

03/03/2026

CIS Tax Penalty - Case Study

There is nothing quite like the relief of seeing years of HMRC penalties wiped clean! Before contracting with Magna, one of our CIS contractors had a historic mountain of penalties for the 2018/19 and 2019/20 tax years.

Managing the complexities of CIS and Self-Assessment Tax while working onsite is a massive burden. That’s where we step in! By utilising Magna's Accounting and Payroll services, we were able to handle the communication and formal appeal process directly with HMRC, thereby arguing our contractor’s case.

The result? HMRC accepted the appeal and cancelled every single penalty!

At Magna, we don't just process your pay; we protect your livelihood. We ensure your compliance is watertight so you can focus on the job at hand, knowing your tax affairs are in expert hands.

Is your current provider going the extra mile to clear your compliance hurdles? Let’s talk about how Magna can streamline your CIS Accounting and Payroll.

24/02/2026

How Recruitment Agencies and End Clients Should Prepare for April 2026

The upcoming changes demand a more proactive approach to compliance and supply chain management. Waiting until the legislation is live will be too late.

Key steps to take now:
• Review umbrella arrangements and funding models
• Strengthen due diligence and audit rights
• Establish preferred umbrella panels with financially stable providers
• Consider funding solutions that are not reliant on the umbrella’s own cash flow

At Magna Group, we are already supporting organisations to build secure, compliant, and resilient workforce supply chains. Our funding solutions are not linked to our own finances, helping reduce reliance on delayed payments and lowering exposure to cashflow-driven failures.

If you want to understand how the April 2026 changes could impact your business and how to reduce your risk now, speak to Magna Group today.
Plan early. Protect your supply chain. Stay compliant.

19/02/2026

Why Some Umbrella Models Could Become a Liability After April 2026

Many smaller umbrella companies operate by offering credit terms to agencies or end clients. This often means payroll and tax obligations are funded using delayed client payments.

That model carries a clear risk.

If cash flow tightens and PAYE or NICs are not paid on time, the liability will no longer sit solely with the umbrella. Agencies and end clients can be held directly responsible.

As these rules take effect, undercapitalised and credit-dependent umbrellas are likely to lose market share or exit the market entirely.

18/02/2026

New Umbrella Legislation: A Major Risk Shift for Agencies and End Clients

From 6 April 2026, UK legislation will fundamentally change how risk is allocated across umbrella supply chains.

Under the new rules, agencies and end clients will become jointly liable if an umbrella company fails to pay PAYE or National Insurance Contributions. This marks a significant shift in responsibility and places far greater emphasis on who you partner with.

This is no longer just an umbrella compliance issue; it is a commercial and financial risk for agencies and clients alike. If you are engaging workers via umbrellas, now is the time to review your supply chain and understand your exposure before the legislation comes into force.