Joint & Several Liability
The Challenge
Recent draft legislation proposes the introduction of Joint and Several Liability (JSL) across the temporary labour supply chain. This places increased compliance responsibility on employment businesses, agencies and pay intermediaries.
Where errors or omissions occur in tax submissions, liability – including penalties and fines – may transfer across the chain. In cases where no umbrella company is involved, risk may extend directly to the end client.
As a result, all parties must be able to proactively demonstrate tax compliance, not merely assume it.
Joint and Several liability focuses specifically on the accurate and timely calculation, reporting, and payment of:
- Employer tax liabilities (ERs)
- Employee tax liabilities (EEs)
- PAYE
- National Insurance Contributions
Transparency is no longer optional.
The Lighthouse Solution
Carter Bond utilises Lighthouse, powered by Octopaye, a cloud-based portal designed to provide clear, real-time visibility of worker tax submissions across the supply chain.
Lighthouse enables agencies to demonstrate compliance confidently to their clients – and end clients – using verified payroll and HMRC submission data.
Key Benefits
- Real-time transparency across tax calculations, submissions and payments
- Built on Octopaye's proven payroll infrastructure
- Seamless integration with Octopaye platform
- Flexibility for agencies to submit directly if preferred
- Designed specifically to support HMRC compliance requirements
How Lighthouse Works
1. Calculate
Total liability payable to HMRC is calculated within the Octopaye payroll platform and presented via the P32 report.
2. Submit
FPS returns are submitted to HMRC through the Octopaye API.
3. Report
The IR marker confirms that the liability has been reported and received correctly by HMRC.
4. Report
Lighthouse provides a real-time snapshot of the appropriate HMRC account where funds have been received.
Interim solution (pending HMRC API documentation)
A screenshot of the recipient bank account is uploaded to the portal to evidence accurate receipt of funds.
Powered by:
Octopaye P32 Report
Lighthouse Report & Payslip Drill Down
Ensuring that tax liabilities have been calculated and reported accurately.
Lighthouse enables detailed verification that tax liabilities have been:
- Calculated accurately
- Reported correctly
- Submitted successfully
Users can drill down from summary reports to individual payslips, providing clear audit trails where required.
Submission Confirmation & Evidence
Real-time updates when FPS submissions are made to HMRC.
- Downloadable submission receipts
- Data pulled directly from RTI / FPS history logs
- Monthly liability summaries available via dropdown view
Upload of the two most recent HMRC liability and banking transaction images for verification.
HMRC API connectivity will be activated when released
After industry consultation with the HMRC to champion greater transparency via API, the HMRC have confirmed plans to Umbrella payroll softwares that they will make APIs available in due course.
