Switch payroll provider with a checked handover
To switch payroll provider, you need a controlled transfer of employee records, payroll history and HMRC authorisation, followed by a checked first pay run. Streamlining Payroll uses a four-step process with year-to-date reconciliation and a parallel run. A typical SME move takes two to four weeks and can be planned during the tax year.
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Can you switch payroll provider mid-tax-year?
Yes. Waiting until April is not a requirement, but a mid-year move needs accurate cumulative figures for continuing employees. Pay and tax to date, payroll identifiers, pension status and relevant statutory pay records must transfer correctly. An incomplete handover can produce a plausible-looking first payslip while the cumulative calculation is wrong. We reconcile the history before the first live run.
A provider change is not a new employment. Do not create leavers and starters simply because the payroll software changes. Payroll IDs and the software’s handling of identifiers need particular care to avoid duplicate employment records at HMRC. We agree the changeover point and which provider owns the final old-system submission, the first new-system submission and any corrections.
What do we need from your current provider?
We start with a current employee list, PAYE scheme references, year-to-date reports, recent payroll outputs and the next pay date. Pension records, tax codes, student loan notices, attachments of earnings and statutory payment histories may also be needed. The exact pack depends on your workforce; a monthly salary list alone is not a complete payroll handover.
Ask the outgoing provider to confirm their last processing period and supply the agreed records securely. Tell us about outstanding HMRC notices, prior-period corrections and any disputed figures. If an export cannot carry every field, the missing information needs another checked route into the new setup. Keep copies of the old reports accessible for later enquiries and year-end reconciliation.
Why use Form 64-8 and a parallel run?
HMRC authorisation makes the agent relationship transparent. Our onboarding includes Form 64-8 and a check that the relevant PAYE access is in place. Do not share a personal Government Gateway password as a shortcut. Authorisation is separate from your approval of each payroll and does not transfer the employer’s legal responsibility to the bureau.
The parallel run compares a test calculation with the existing payroll. We investigate differences in tax, National Insurance, pension treatment and employee totals rather than accepting only an overall match. A test is not another live FPS: ownership of reporting must remain clear. Once discrepancies are resolved, we agree go-live and employee portal access. Two to four weeks is typical for an SME, not a promise for an incomplete or unusually complex handover.
How does it work?
- 1
Setup and discovery
We review your pay structures, payroll history, schedules and required outputs. The next payday drives the plan. We identify missing records, responsible contacts and the agreed scope before asking you to commit to a live handover date.
- 2
HMRC authorisation
We arrange the PAYE agent authorisation through Form 64-8 and check the reporting setup. Scheme references and access need to be right; a change of bureau must not be mistaken for registering a new employer scheme.
- 3
Reconciliation and parallel run
We reconcile year-to-date balances and run a parallel payroll against your existing provider’s figures. Differences are explained and corrected. Test calculations remain separate from live HMRC submissions to avoid duplicate reporting.
- 4
Go-live and employee logins
After approval, we confirm the first live pay run, reporting ownership and employee portal access. We provide the agreed outputs and check the handover results, with a typical SME change taking two to four weeks.
Common mistakes and compliance traps
Do not reset cumulative pay, reuse incorrect payroll identifiers or send two live FPS files for the same run. Employee history must continue across the software change, not restart as though everybody had just joined.
Do not cancel the outgoing service before the final reports and responsibilities are agreed. A successful test calculation is only part of the move; pension files, payment outputs, secure access and employer approval also need checking.
Frequently asked questions
Can I switch payroll provider mid-tax-year?
A mid-tax-year payroll provider switch preserves and reconciles the continuing employees’ year-to-date records and agree responsibility for submissions at the handover. There is no general requirement to wait until the start of a new tax year.
How long does switching normally take?
A typical SME switch takes two to four weeks. Timing depends on complete records, the next pay date, authorisation and how much reconciliation is needed. We confirm the timetable after reviewing your situation.
Will the parallel run be sent to HMRC?
A payroll parallel run is a test comparison that is not sent to HMRC, not a second live payroll submission. We agree which provider files each live period and who handles any correction, avoiding duplicate reporting during the transition.
Do employees need new starter forms because we change provider?
A change of bureau does not itself make a continuing employee a new starter. Existing records and identifiers need to carry across appropriately; actual new starters are handled through the normal starter process.
How is data transferred securely?
We agree a secure handover route and authorised contacts. UK-only processing, role-based access and encrypted payslip portals are part of our data handling. Do not send an unprotected employee export through an unverified message.
Talk through your payroll
Tell us your headcount, pay frequency and current arrangements. A named specialist will respond within one working day.