As we approach the end of 2025, changes are already on the horizon that will shape how labour supply chains operate in the years ahead. One of the most significant of these is the introduction of Joint and Several Liability (JSL) which is expected to come into force in 2026.
While many businesses might not be focused on the detail just yet, JSL is set to fundamentally change how responsibility, accountability and risk are shared across labour supply chains, particularly for agencies and end clients engaging self-employed or flexible workforces.
So, what is Joint and Several Liability?
At a high level, JSL is designed to ensure that all parties in a labour supply chain can be held accountable for unpaid tax and non-compliance, not just the party directly paying the worker.
This means that where there are issues such as tax avoidance, non-payment or poor compliance further down the supply chain, responsibility might extend upwards and potentially expose agencies and end clients to financial and reputational risk.
In short, JSL places a greater emphasis on visibility and due diligence.
Why does this matter now?
Although JSL won’t take effect until 2026, the direction of travel is certainly clear. HMRC continues to focus on transparency and accountability, and JSL is another step towards tightening oversight of labour supply arrangements.
For many businesses, this will mean taking a closer look at how their supply chains are structured, who they are working with and how payroll and employment models are managed.
Waiting until JSL is fully implemented may limit the options available. Early awareness allows organisations to plan, adapt and reduce risk in a controlled way.
How can Bishopsgate support you?
Throughout 2026, we’ll be sharing clear, practical guidance to help agencies and end clients understand what JSL means in real terms without unnecessary jargon, and expanding on this topic in more detail.
If Joint and Several Liability is on your radar, or especially if it isn’t, now is the time to start paying attention.