Can I change payroll providers part way through the year?

If you’ve been thinking about switching payroll companies, you’re not alone. Over the years, I’ve spoken with many new payroll clients who’ve said, “I wish I’d moved sooner!”

One of the most common misconceptions is that the only good time to change payroll providers is at the end of the tax year. While it’s true that a year-end switch can make the process slightly simpler, an experienced payroll provider can handle a mid-year payroll provider change just as effectively, and often with minimal disruption.

Yes, there are a few extra steps, but with good planning and the right payroll partner, the transition can be smooth and stress-free.

Key considerations before changing payroll providers mid-year

If you’re planning to switch payroll providers mid-year in the UK, think about:

• Researching your new provider – Make sure they’re reputable, reliable, and have strong client feedback.
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• Planning the transition – Keep employees informed so they know their pay won’t be affected.
• Notifying your current provider – Let them know you’re moving and ensure a professional handover.

How long does a payroll provider switch take?

There’s no set timeframe for switching payroll companies mid-year. It will depend on:

• The size of your workforce
• How quickly your current provider can supply information
• The complexity of your payroll

To ensure accuracy, your new payroll company will want enough time to complete the handover, run “dummy” payrolls, and check all year-to-date (YTD) figures before live processing begins.

Documents your new payroll provider will need

When you change payroll providers partway through the year, they will usually require:

• P11 file – Year-to-date employee information for HMRC balancing
• Most recent payslips – From your current payroll provider
• Full employee data – Including personal details, contact information, and salaries
• Pension details – Pension provider, enrolment dates, and YTD pension contributions
• Last Full Payment Submission (FPS) – Including employee payroll numbers/references to avoid PAYE duplication

How Lambert Chapman makes mid-year payroll switching easy

At Lambert Chapman, we regularly help businesses switch payroll providers mid-year without disruption. Our payroll team will liaise directly with your outgoing provider, ensuring a smooth transfer of information and complete continuity for your staff.

If you’re considering changing your payroll company – whether at year-end or mid-year – we can help you make the move with confidence. Contact the team today.