Payroll transition checklist
How to switch payroll providers without missing an RTI submission
Plan the handover around a clean pay period, reconcile year-to-date figures and make responsibility for the next FPS explicit.
Changing payroll provider is primarily a data and responsibility handover. The safest switch has one named owner for the final run under the old arrangement and one for the first run under the new arrangement. The figures, Payroll IDs and HMRC reporting history then need to join up.
1. Pick the cut-over point
A tax-year boundary can be convenient but is not essential. A clean month or week end works if the year-to-date data is complete. Avoid switching during a complex pay run if possible, and allow time for the new provider to check records before the next approval deadline.
2. Collect the payroll handover pack
Request employee details, tax codes, National Insurance categories, current Payroll IDs, starter declarations, year-to-date gross pay and deductions, pension data, statutory payment records, attachment orders, previous FPS/EPS information and copies of recent reports.
- Employer PAYE references and Accounts Office reference
- Employee and director setup details
- Year-to-date pay, tax and National Insurance
- Current leave, statutory pay and deduction records
- Submission receipts and recent payroll journals
3. Reconcile before migration
Compare the final payroll reports with HMRC records, accounting entries and amounts paid to employees and HMRC. Investigate differences rather than carrying them into the new system. The new provider should confirm opening balances and produce a parallel or pre-submission comparison where practical.
4. Protect Payroll IDs
HMRC warns that changing an employee’s Payroll ID without using the Payroll ID changed indicator can create a duplicate employment record and an incorrect tax code. Retain IDs where possible. If an ID must change, make sure the new software reports both the old and new information correctly.
5. Confirm the first live run
Agree the data cut-off, approval contact, payment date, pension upload and the person filing the FPS. HMRC generally requires payroll information on or before payday. Save the submission receipt, compare totals with the agreed control report and keep the previous system data accessible.
After the switch
Do not immediately delete the old system or records. Retain access in line with legal and contractual requirements, review the first HMRC account update and check employee tax codes or queries. Document what was transferred and any items still being resolved.
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Official sources and review notes
This guide was checked against the following official guidance on 29 August 2026.
General information only, not personal tax, employment-law or pensions advice. Rules and outcomes depend on your circumstances. Check current GOV.UK guidance or obtain professional advice before acting.