The Site Source - The latest compliance & legislation changes shaping construction recruitment
- Marketing
- Nov 12
- 5 min read
On & Off Payroll Working – New HMRC Legislation is on the way
From 6 April 2026, new HMRC legislation joint liability rules come into effect relating to the use of umbrella companies. If an umbrella company fails to pay the correct tax or national insurance, the agency or end client that engaged the worker through that umbrella could be held jointly liable by HMRC for the unpaid amounts. The change is designed to tackle widespread non-compliance in the umbrella market and ensure that all parties in the supply chain take responsibility for proper tax and PAYE operation.
End clients will need to carry out careful due diligence on any agencies and umbrella companies they work with to confirm they are compliant. For workers, the move should lead to greater protection and more consistent payment of tax and national insurance contributions. For umbrella companies, the legislation marks a tightening of HMRC’s endeavour to drive compliance after years of failed self-regulation.
Overall, the measure aims to create a fairer, more transparent system for all involved. When the legislation comes into effect, it will be imperative that the end client engages only those agencies and umbrella companies that are capable of demonstrating full transparency and accountability within their systems.
Contact Tom Carmichael to find out more on
T: 07341 400 500
Identity Verification for Limited Companies & LLPs arrives soon
From 18 November 2025, new identity verification (IDV) rules under the Economic Crime and Corporate Transparency Act 2023 will require all company directors and persons with significant control of companies and LLPs to verify their identity with Companies House. New directors appointed to a company must complete verification within 14 days, while existing directors and persons with significant control have until November 2026 to comply.
Once verified, each individual will receive a unique Companies House personal code to be used for all future filings for all companies they are associated with. Those who fail to verify will be unable to make or be included in any Companies House filings and may face criminal penalties or fines of up to £5,000. Continued failure to comply runs the risk of the company being struck off. The IDV process can be completed online using the GOV.UK One Login, via an Authorised Corporate Service Provider (ACSP), or in person at a Post Office.
Click the link below to find out more:
Toolbox talk of the month - Know your numbers and the signs of prostate cancer
The importance of regularly checking your key health metrics was the topic on site recently with our Health & Safety Manager, Johan, delivering specific briefings on this subject. Johan has been helping the workforce to understand how to measure their glucose levels, blood pressure, heart rate, and cholesterol levels. He has also been discussing what actions can be taken to lower readings where the readings are at a level likely to contribute to ill health.
A large part of Johan’s talk centered around the need for men to be aware of the symptoms of prostate cancer which is a disease that is becoming more prevalent with the number of cases unfortunately rising year on year. This briefing has been very well timed and coincides with former prime minster Rishi Sunak calling for a targeted screening programme for men to help detect prostate cancer early. Following the briefings, Carmichael are working with clients to explore the possibility of including prostate screening as part of regular site health and wellbeing programmes. Click on the link below to find out more about prostate cancer.
Click here to find out more about Prostate Cancer: https://prostatecanceruk.org/
Hummingbird Contractor of the month
Dave has been recognised for his outstanding reliability, professionalism, and willingness to go above and beyond. Not only does he deliver on his own work, but he also takes time to guide and support young engineers on site by helping them feel confident and well supported in their roles.
Site Safety - Health & Safety is everybody's responsibility
Carmichael Health & Safety strategy is built on a foundation of accountability, innovation, and engagement. Aligned with ISO 45001 and supported by our Safety Culture systems, our structured approach ensures compliance, enhances safety performance, and drives continuous improvement.
By embedding safety into our operations and fostering a proactive culture, Carmichael is committed to protecting our workforce, partners, and the communities in which we operate. To find out more about how we can help to promote a safe and compliant working environment, contact Mark Blakey
T : 07776 300551
Spotlight On - Delivering projects with a PAYE workforce
Across the UK’s major infrastructure programmes, from High Speed 2 to National Highways and Network Rail, the move to a PAYE-only workforce has become standard practice. It’s a policy built on fairness, compliance, and long term value.
For workers, PAYE provides real employment status and the benefits that come with it including holiday pay, pension contributions, and sick pay. It gives stability, recognition, and a stronger sense of belonging, all factors that improve engagement, retention, and safety performance on site.
For projects, it is about where value is realised. Under PAYE, a £200m labour project can generate around £72m in tax and national insurance paid directly back into the economy. Under CIS or self-employed models, that tax take can fall to around £36–44m. The difference, up to £36m, is usually retained in the project through lower employment costs such as employer’s NI, holiday pay, and pension.
Both approaches deliver labour and both are legal. The choice is whether to realise value in the project through immediate cost savings, or in the wider economy through taxation and long term workforce security.
At Carmichael we believe the industry works best when fairness, transparency, and accountability are built into the model. PAYE is not just compliant; it is an investment in people, communities, and the future of our sector.
If you would like to find out more about payrolls compliance, please contact us on 07739 900 900.
Conversations with CarmichaelUK
Over forty years ago, after completing my YTP scheme and OND in building and civil engineering, I began my construction career as a dump truck driver. Soon after I was given a fantastic opportunity as a young chain person at Belfast Docks. I loved the work, the camaraderie, and the sense of pride in building something lasting. Over the years I progressed from an engineer to a site agent in the highways and water industry, always working with great people and learning something new each day.
I am proud to work in an industry that not only builds for the future but also gives people from all backgrounds the chance to develop rewarding careers of their own. Few industries offer the same opportunities for genuine progression as construction.
When we started Carmichael Site Services Limited, it was vital to me that others had the same opportunities I’d been given. We’ve always strived to deliver for our workforce because we know that without them, we are nothing.
This month marks the thirtieth anniversary of placing our first people on site. I want to thank our clients for their continued trust and, most importantly, our workforce for their hard work and loyalty. We remain committed to always ‘Placing People First’.
Rod Carmichael
CEO, CarmichaelUK
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