Payroll guide
How to switch payroll providers
Switch UK payroll providers with a six-step plan, a secure handover checklist and checks to make before your first pay run.
Find MarlinBy Find Marlin · Published · Reviewed
Your payroll changeover plan
Review your existing agreement
Check the notice period, exit charges and how you’ll get your records back. Agree a realistic changeover plan before ending the current service.
Write your payroll brief
List your employee numbers, pay frequencies, pension arrangements and specialist requirements. Decide which tasks your team will keep.
Compare providers and confirm capacity
Compare full fees, support and security arrangements. Ask the new provider to confirm it can meet your first pay date and agree who will approve the run.
Transfer payroll records securely
Ask the new provider for a handover list. Agree how the records will be transferred and who will check them before the first calculation.
Agree who owns each pay run
Record the old provider’s last run, the new provider’s first run and who will make the associated HMRC submissions. Confirm the first cut-off and pay dates.
Check the first run before approval
Where practical, test against a previous run. Reconcile employee details, year-to-date balances and deductions. Resolve discrepancies before approval and confirm who handles payments, pensions and submissions.
What to include in the handover
Confirm the exact list with the new provider and agree a secure transfer method before sharing any employee records.
- Employee and payroll records, including relevant starters and leavers
- Employer PAYE references and employee payroll IDs
- Year-to-date pay and deductions, tax codes and National Insurance details
- Workplace pension scheme and contribution information
- Relevant statutory payment records and recent payroll reports
Can you switch halfway through the tax year?
Yes. Agree how year-to-date figures and payroll IDs will carry over. Confirm which provider files each submission to reduce the risk of duplicate or missing records.
Tell employees what is changing
Let staff know if their payslip access or payroll contact will change. Tell them who to speak to if they have a query after the first pay run.
Frequently asked questions
- What should I check if payroll IDs change?
- Ask the new provider how it will link each employee’s previous payroll ID to the new one in the HMRC submission. HMRC can otherwise treat the employee as a new starter.
- Can I test the first payroll before going live?
- Ask whether the new provider can run a test calculation using a previous pay period. Compare pay and deductions and resolve discrepancies before approving the first live run.
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Payroll switching checklist
First pay date: ____________________ First cut-off: ____________________
- Review your existing agreement
Check the notice period, exit charges and how you’ll get your records back. Agree a realistic changeover plan before ending the current service. - Write your payroll brief
List your employee numbers, pay frequencies, pension arrangements and specialist requirements. Decide which tasks your team will keep. - Compare providers and confirm capacity
Compare full fees, support and security arrangements. Ask the new provider to confirm it can meet your first pay date and agree who will approve the run. - Transfer payroll records securely
Ask the new provider for a handover list. Agree how the records will be transferred and who will check them before the first calculation. - Agree who owns each pay run
Record the old provider’s last run, the new provider’s first run and who will make the associated HMRC submissions. Confirm the first cut-off and pay dates. - Check the first run before approval
Where practical, test against a previous run. Reconcile employee details, year-to-date balances and deductions. Resolve discrepancies before approval and confirm who handles payments, pensions and submissions.
Records to hand over securely
- Employee and payroll records, including relevant starters and leavers
- Employer PAYE references and employee payroll IDs
- Year-to-date pay and deductions, tax codes and National Insurance details
- Workplace pension scheme and contribution information
- Relevant statutory payment records and recent payroll reports