Yes, all three do. Since April 2019, Section 8 of the Employment Rights Act 1996[1] applies to every worker, not only employees, so agency, umbrella, and zero-hours staff are all entitled to an itemised payslip. Where pay varies by hours, the payslip must also show the number of hours worked[2].
What changed in April 2019?
Before April 2019 the payslip right ran to employees only. The 2019 extension brought all workers into scope: it covers all 1.2 million agency workers[11] and gave almost 300,000 people a payslip for the first time[10].
Since 6 April 2020 an agency must also, by law, give you a Key Information Document (KID)[8] before you agree terms, showing the assignment rate, deductions, and an example take-home. Your first payslip should reconcile to it.
Who issues the payslip in each arrangement?
| Worker type | Who runs payroll and issues the payslip | Payslip must show |
|---|---|---|
| Agency worker | The agency (or its payroll provider) | Gross, deductions, net, and hours where pay varies |
| Umbrella worker | The umbrella company (your employer for PAYE) | Assignment rate, deductions, PAYE, NI, and net |
| Zero-hours worker | The employer or agency engaging you | Gross, deductions, net, and hours worked that period |
Why does an umbrella payslip look different?
An umbrella is your employer for PAYE, and the client pays it an assignment rate that includes costs your own employer would normally bear. It should reconcile that rate down to gross, then show the usual PAYE and National Insurance[4] deductions to net. Unidentifiable deductions, an employer or company name that keeps changing, or several companies used for one workforce are red flags worth checking, and every deduction must be itemised by law. Rolled-up holiday pay[12] is only permitted for irregular-hours and part-year workers, for leave years from April 2024, and must be a separately itemised line. The anatomy of a compliant UK payslip shows where each line belongs.
What does an umbrella payslip look like, line by line?
| Line | What it is | Whose cost it is |
|---|---|---|
| Assignment rate in | What the client pays the umbrella per hour or day for your work | The client's payment to the umbrella |
| Employer's National Insurance | Secondary Class 1 NI at 15% on pay above the £96/week Secondary Threshold for 2026/27 | Employer cost, paid from the assignment rate |
| Apprenticeship Levy | 0.5% employer levy | Employer cost, paid from the assignment rate |
| Umbrella margin | The umbrella's retained fee for running your payroll | The umbrella's charge, from the assignment rate |
| Employer's pension contribution | The employer share of auto-enrolment, where it applies | Employer cost, paid from the assignment rate |
| Holiday pay | Rolled up into your rate, or accrued and paid when you take leave | Your money, either way |
| = Your gross pay | What remains after the employer costs above are met | Yours; the taxable wage |
| PAYE Income Tax | Tax on your gross, on your tax code | Your deduction |
| Employee's National Insurance | Primary Class 1 NI on your gross | Your deduction |
| Student loan | Where a plan type applies | Your deduction |
| Employee's pension contribution | Your auto-enrolment share | Your deduction |
| = Your net pay | What actually reaches you | Yours |
Is my umbrella payslip compliant?
Employer's NI, the Apprenticeship Levy, and the employer pension are the employer's costs[7]. Taking any off your gross, rather than the assignment rate, unlawfully shifts the employer's cost onto you. A compliant payslip passes all four:
- The assignment rate is shown at the top, not just your gross.
- Employer costs (employer NI, the levy, employer pension) sit above the gross line, met from that rate.
- The umbrella margin is disclosed as a named line, not hidden.
- Every deduction is itemised, and the top-line rate reconciles down to your gross.
What changed on 6 April 2026?
The Finance Act 2026[5], which received Royal Assent on 18 March 2026, added a new Chapter 11 to the Income Tax (Earnings and Pensions) Act 2003, with equivalent National Insurance rules. For payments made on or after 6 April 2026, it changes who HMRC can pursue when an umbrella company does not operate PAYE correctly.
Liability is agency-first. The UK recruitment agency that contracts with the end client to supply you is now jointly and severally liable with the umbrella company[6] for unpaid PAYE and National Insurance. Only where there is no UK agency in the chain, or the contracting party is outside the UK, does the end client carry that liability instead. That puts a well-resourced UK business on the hook for the tax on your pay.
To report a non-compliant umbrella: HMRC for tax and umbrella non-compliance, the Fair Work Agency (FWA)[9] for agency conduct, and Acas for a pay dispute.
Primary sources
- 1.Employment Rights Act 1996, Section 8 — legislation.gov.uk — The right to an itemised pay statement, extended to workers in April 2019
- 2.Payslips: employer guidance — gov.uk (Acas) — Who must receive a payslip and the requirement to show hours where pay varies
- 3.Agency workers: your rights — gov.uk — Agency workers are workers with pay-statement rights
- 4.National Insurance rates and categories — gov.uk — The PAYE and NI an umbrella company deducts and shows on the payslip
- 5.Finance Act 2026 (c. 11) — legislation.gov.uk — Royal Assent 18 March 2026; introduces Chapter 11 of ITEPA 2003 for umbrella companies
- 6.PAYE rules for labour supply chains with umbrella companies from 6 April 2026 — gov.uk — HMRC guidance on joint and several liability for unpaid PAYE and NICs
- 7.Rates and thresholds for employers 2026 to 2027 — gov.uk — Employer NI at 15% above the £96/week Secondary Threshold, and the 0.5% Apprenticeship Levy
- 8.Key Information Document guidance for agency workers paid through umbrella companies — gov.uk — Since 6 April 2020 an agency must give a KID before you agree terms, showing the assignment rate, deductions, and an example take-home
- 9.Complain about pay and work rights — gov.uk — The Fair Work Agency (FWA) route for complaints about an agency, employment business, or umbrella
- 10.New laws give 300,000 workers a payslip for the first time — gov.uk — Almost 300,000 workers who previously received no payslip gained one from April 2019
- 11.Government response to the Taylor Review (Good Work Plan) — gov.uk — The reform giving all 1.2 million agency workers a clear breakdown of pay and deductions
- 12.Holiday pay and entitlement reforms from 1 January 2024 — gov.uk — Rolled-up holiday pay allowed for irregular-hours and part-year workers only, leave years from 1 April 2024, shown as a separate payslip item
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