Introduction to Compass Joint Ventures for TEAM Members

Umbrella non-compliance could sink agencies post-April 2026.

HMRC have declared that during 2022 to 2023, £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by non-compliant umbrella companies.

Legislation will be enacted so that from April 2026 agencies will be liable for any shortfall in PAYE where an umbrella company is present in the supply chain.

Tax avoidance schemes, or just accidental processing mistakes by unprofessional umbrella providers,will directly threaten the financial health of TEAM agencies.

A Compass JV effectively allows the TEAM agency to control the umbrella payroll operation without any direct operational involvement or management demands.

Turn your payroll into a growth asset

A Compass JV creates a business asset fed by your ongoing payroll needs. You can focus on revenue draw down equivalent to current rebates, or a future liquidity event at which point you cash-out (typical value 4/5 times EBIT).

Satisfy client demands for PAYE compliance

Where an umbrella and agency are unable to account for PAYE liabilities the end hirer becomes responsible. Compass JV becomes a necessity for some clients and a major selling point when pitching to others