Switching Payroll Providers Mid-Year? No Sweat!

Let’s be real - payroll is all about keeping things smooth and efficient. And if you’ve ever thought about switching payroll providers, you’ve probably heard the same old advice: "Wait until the new tax year in April!" But here’s the thing—that advice might be more myth than must-do. Sure, April gives you a "clean slate" with fresh year-to-date figures, but is it really the best time to make the switch? Let’s break it down.

April: The Perfect Time… or Just a Busy Mess?

Yes, starting fresh in April sounds nice. But let’s not forget—April is chaos for payroll teams. You’re wrapping up the old tax year (P60s, P11Ds, PSA returns), updating systems with new thresholds, and making sure everything reconciles. 

So, do you really want to pile on a provider switch during this madness? Probably not. 

So, When Is the Right Time? 

Truth is, there’s no one-size-fits-all answer. Every business has its own rhythm. Here’s what to consider when picking your ideal switch time: 

·        Seasonal staff changes? If summer or Christmas means onboarding (and offboarding) temps, maybe avoid those peaks. 

·        Holiday absences? If half your team is on leave, adding a payroll transition might not be the smartest move. 

·        Busy periods? Salary reviews, minimum wage updates—if you’re already swamped, don’t make life harder. 

Bottom line: Ask yourself, "When’s the right time for us?" And don’t forget—your new provider has busy times too (like October for employment law changes and April for payroll updates). So, sync up! 

Making the Move: What to Think About 

Switching providers isn’t just a click-and-go process—it’s a project. Here’s how to make sure it goes smoothly: 

1. Why Are You Switching? 

Get clear on your reasons. Are you looking for: 

·        Better integration with other systems? 

·        Cost savings? 

·        A smoother user experience? 

·        Stronger compliance? 

·        More efficiency? 

And don’t forget to check your current contract for any sneaky exit clauses!

2. The Nitty-Gritty Setup 

Your new provider will help, but you’ll want to prep: 

·        Contractual schemes (like maternity pay) 

·        How a "day’s pay" is calculated 

·        Reporting needs (especially if syncing with finance systems) 

·        Pension contribution calculations 

 3. Communication Is Key 

Don’t leave employees in the dark! They still expect to be paid on time, without hiccups. Make sure everyone who needs to know (HR, finance, IT) is looped in. 

 4. Get the Right Support 

A good provider will offer a dedicated project lead to guide you. As Austin Shaw from MyPAYE Ltd puts it: 

"Why wait 'til year-end to sort your payroll? Upgrading shouldn’t be a faff—our managed onboarding makes switching dead easy, whenever you’re ready. With hassle-free cloud migration and proper expert backup, we’ll have you set up sharpish, spot-on, and just how you like it."

Mid-Year Switch? No Problem! 

Worried about transferring year-to-date figures mid-tax year? Don’t be. A good provider can handle it seamlessly. 

But—important note! — any switch (April or not) can sometimes confuse HMRC’s systems. The risk? Duplicate employment records, which could mean double tax liabilities or HMRC thinking your employee has two jobs. 

How to Avoid HMRC Headaches 

The fix? Correctly using three RTI fields: 

1.     Payroll ID (your new system’s ID) 

2.     Old Payroll ID (the one you used before) 

3.     Payroll ID changed (telling HMRC there’s an update) 

Mention RTI data items 38, 39, and 40 to your new provider, and they’ll make sure everything’s submitted right. 

Oh, and always do at least one parallel run—compare your old and new system’s results to catch any discrepancies. 

Final Thought: Stop Waiting for April! 

Yes, payroll pros are obsessed with timing (for good reason—getting paid on time is kind of a big deal). But that doesn’t mean you have to wait for April to switch providers. 

The best time is when it works for you—whether that’s mid-year, end-of-year, or somewhere in between. 

Ready to Make the Move? 

If you’re thinking about switching, MyPAYE has a dedicated team to make it painless. Want to learn more? Get in touch with our experts on 0161 413 5050 or email sales@liquidaccounts.com