Saferec Problems?

**cojak** · 17 July 2026, 16:14

Saferec is a compliance company for recruitment industries and are in the firing line because of Honest Payroll Ltd , an umbrella that went into administration owing HMRC a lot of VAT.

It's all a bit messy as some commentators claim that had HPL gone into administration after April this year, agencies would have face 'significant financial exposure' because of JSL rules. Saferec says that JSL only refers to tax and NI, not VAT.

But I think that's all missing the point. What exactly is the point of Saferec in the first place? Honest Payroll's accounts were overdue from August 2025 - what on earth were Saferec doing over that time?

Anyway, I can't find any info on lost data, so my advice to your friend is to ignore Saferec as a company - look at the company accounts for the listed umbrellas that he's considering. That's far more important.

**Nothing to see here** · 20 July 2026, 09:02

I'm not sure that the Honest Payroll collapse is really why Saferec is under scrutiny.

With regards to JSL, the commentators you mention are wrong - JSL only applies to PAYE liabilities and in the case of the Honest collapse, the PAYE liability was discharged.

With regards to what Saferec is for, they seem to present themselves as a "solution" to JSL but like the others, it cannot guarantee that PAYE liabilities are paid, only that the calculations done to reach the amount of tax and NI payable have been done correctly. Until there is a direct link to HMRC from the third-party audit platforms, that will always be the case and as far as I know that link is a long way off being available. Oh and by the way, on a small but relevant point, from what I can see on Companies House, Honest's accounts were due by 30th September 2025 and the administration commenced 11 days prior to that on 19th September 2025 so they weren't late while Honest were still in control. I don't think that Saferec would have picked anything up as long as the data was still flowing down to them.

I'm not defending Honest by the way. Clearly something was badly mismanaged. The fact that the administrators state that despite requests, they still haven't had a statement of affairs from the directors tells a story in itself.

**cojak** · 20 July 2026, 09:17

It’s all I found on Saferec, I didn’t find anything on a data breach (not to say that it didn’t happen, I just didn’t find any info on it).

**Nothing to see here** · 20 July 2026, 09:42

Originally posted by cojak View Post

It’s all I found on Saferec, I didn’t find anything on a data breach (not to say that it didn’t happen, I just didn’t find any info on it).

I have heard similar rumours but I suspect it may just be sour grapes from a bad actor in the umbrella sector.

**lucyclarityumbrella** · 21 July 2026, 15:26

There is an accredited umbrella, which I know of very well, no names mentioned, which has gone under it seems. We have seen a few enquiries come from contractors who are not even able to reach anyone by phone, and bank accounts been frozen, so looks like no further funds coming out. if you are unfortunate enough to be involved, then please make sure your agency or end clients do not send any further funds as it is likely these will vanish into think air at this time!

**Nothing to see here** · 23 July 2026, 07:37

Originally posted by lucyclarityumbrella View Post

There is an accredited umbrella, which I know of very well, no names mentioned, which has gone under it seems. We have seen a few enquiries come from contractors who are not even able to reach anyone by phone, and bank accounts been frozen, so looks like no further funds coming out. if you are unfortunate enough to be involved, then please make sure your agency or end clients do not send any further funds as it is likely these will vanish into think air at this time!

Saferec or FCSA accredited? Come on, give us a clue.....

**lucyclarityumbrella** · 23 July 2026, 08:02

Originally posted by Nothing to see here View Post

Saferec or FCSA accredited? Come on, give us a clue.....

Both!

**Nothing to see here** · 23 July 2026, 08:56

Originally posted by lucyclarityumbrella View Post

Both!

And now I know why you know them well.....

https://www.fcsa.org.uk/fcsa-opens-investigation-5/

Ooof.

**eek** · 23 July 2026, 09:11

Originally posted by Nothing to see here View Post

And now I know why you know them well.....

https://www.fcsa.org.uk/fcsa-opens-investigation-5/

Ooof.

That's been known for about a month - I knew 27th June...

Also worth saying that the umbrella got new owners on 10th December 2025...

Saferec Problems?