Switching guide

Changing Payroll Provider: A Handover Guide

The key is to identify where the outgoing provider’s work stops and the new service starts.

Agree where the handover starts and ends

A payroll transfer needs a clear boundary between the outgoing provider’s final run and the incoming provider’s first run. Start by writing down both paydays. Then record who handles outstanding questions, submissions and documents relating to the earlier period. A good handover gives each task an owner instead of leaving both providers to assume the other is dealing with it.

For example, if an outgoing provider completes the June monthly payroll and Payroll Harbour starts with July, the records need to include the completed June position. If June is still being corrected, identify that explicitly. It is much easier to resolve the responsibility before July processing than after two different versions of the year-to-date figures have circulated.

Collect the right payroll records

A move during the tax year needs reliable employee records and year-to-date information. Request the current payroll reports, relevant tax codes, starter and leaver details, pension settings and outstanding adjustments. Tell us about anything unusual, including employees on statutory leave or payments that have been agreed but have not yet been processed.

The exact transfer records depend on the payroll, so we confirm what is required at onboarding. Do not assume that a PDF of the latest net pay list contains everything necessary. Nor should passwords or sensitive employee files be placed in an initial website enquiry. We agree the transfer route, contacts and access arrangements before receiving the records.

Check pension and agent arrangements

Payroll and pension processing need to move together. Establish which pension scheme is used, how contributions are calculated and who currently submits the information. Identify the authorised contacts and how any relevant access will be arranged. We confirm support for the scheme before accepting instructions and include routine processing for one supported pension scheme in the regular fee.

HMRC authorisations also need attention. Confirm whether the outgoing provider has performed the final agreed submissions and what authority Payroll Harbour needs for the new service. Registration or access steps should not be assumed complete merely because the commercial quote has been accepted. Keep the intended first payday visible while these arrangements are being checked.

Retain control over actual payments

Our service calculates payroll and prepares the agreed reports and submissions. You continue making payments to employees, HMRC and your pension provider. When changing provider, check whether the outgoing arrangement included any payment activity that will now need to be handled within the business. The bank timetable may be earlier than the payroll reporting deadline.

The direct debit for Payroll Harbour’s service fee is separate from those payments. It must be active before we start processing, but it does not collect wages, tax or pension contributions. Nominate somebody to check each payment route and ensure that changes in contacts or provider access do not interrupt a standing payment arrangement.

Allow time for a proper first review

Once the transfer information has been checked and the first run prepared, review the reports against the agreed instructions and the transferred position. Raise discrepancies promptly. Approval is an active step: confirm that the figures are authorised rather than leaving the provider to infer approval from silence. Keep a copy of the agreed transfer date and the final reports.

HMRC normally requires payroll reporting on or before payday. That makes it important to confirm readiness before cancelling the existing service. Payroll Harbour offers free standard setup and straightforward transfers. Missing records, conflicting balances, historical errors and substantial reconstruction may need separate work. If that applies, we explain the issue and quote before proceeding.

For accountants moving a portfolio, agree a manageable first group of employers and their pay dates. A staged move can separate straightforward transfers from cases needing more investigation. The same principle applies to a single employer: settle the records, the responsibilities and the timetable before expecting the next payday to run smoothly.