Time to Tighten the List: Rebuilding Your PSL in a Risk-Aware World
Preferred Supplier Lists (PSLs) have always been a balancing act between choice and control. But with the incoming changes to umbrella regulation and PAYE responsibility, that balance is shifting.
Recruitment agencies are set to face increased liability for non-compliance—even when working with third-party providers. That means the question is no longer “Are they fast and flexible?” but “Can I trust them to protect my business?”
At AGPayroll, we’re already helping agencies across the UK review and reshape their PSLs in preparation for this change.
Why your PSL needs more scrutiny
With compliance risk now sitting at the top of the supply chain, agencies need to be sure that every provider on their PSL:
Operates within HMRC guidelines
Has real-time auditing in place (e.g. SafeRec certification)
Provides monthly reporting that proves deductions are correct and taxes are paid
Has transparent, ethical practices—no hidden fees or rebate structures
“We’ve seen agencies use our SafeRec reports to win client tenders—it’s not just compliance, it’s credibility.”
— Chris Fahey, CEO, AGPayroll
What to do now
Reassess your PSL criteria: build compliance into your approval process
Prioritise providers with independent auditing and real-time reporting
Educate your consultants and clients on why a tighter PSL protects everyone
In this new landscape, your PSL is no longer just a convenience—it’s a compliance strategy.
