For years, everyone said the same thing about changing payroll providers. Wait until April 6th. Start fresh with the new tax year. It seemed logical back then.
That old advice might actually be the worst timing possible.
Why everyone used to say April
The logic was simple. The new tax year equals a clean slate. No messy year-to-date figures to transfer. No historical data headaches. Everything resets to zero on April 6th.
This made sense when payroll systems were clunky. Transferring employee data mid-year meant hours of manual input. One wrong number could mess up someone’s entire tax record. Plus, April brought fresh tax codes and new rates from HMRC. Your new system could launch with everything current from day one.
The April switch makes sense, but not anymore.
Payroll technology has moved on, with most systems now exporting and importing year-to-date data with a few clicks. What used to be a nightmare is now routine.
Why April switching actually creates problems
With the biggest hurdle of data entry, now largely solved, what we are left with are four big headaches caused by an April switch..
New tax codes drop in Spring
HMRC sends updated tax codes in February and March. Your old provider downloads these automatically. But when you switch on April 6th, those new codes might not transfer over.
Your employees start the year with outdated tax codes. This can lead to incorrect deductions, unhappy staff and extra work fixing it all later.
Year-end reporting madness
April might start the new tax year, but last year’s work isn’t finished. Payroll teams spend April and May closing out records, filing final submissions, and preparing P60s.
If your old provider’s contract ends on March 31st, who handles these critical tasks? An ex-provider has no obligation to prioritise your filings once you’re not paying them.
Miss these deadlines and you’re in trouble with HMRC.
P60 confusion
Every employee needs their P60 by May 31st. But if you switched in April, who created them? Your old provider has most of the data. Your new provider might need to rebuild everything from transferred records.
Employees get confused when logging into different systems for different documents. HR gets frustrated managing two platforms.
Lost support when you need it most
Your old payroll team knows your setup inside out. After March 31st, they’re reassigned or gone. In fact, they may even be let go or redeployed to other clients once you have handed in your notice, especially if it is a long notice period. THey certainly won’t be motivated to ‘go the extra mile’ for you.
When you discover issues in May, your expert support has vanished, and you’re left handling year-end problems alone, or with a new team that doesn’t have all the information, right when compliance matters most.
When you should actually switch
Almost any other time works better than April. The best timing depends on your business, not the tax calendar.
Look at your workload. When is your team least busy? That’s when to plan your switch. Avoid your peak seasons, bonus periods, or major project deadlines.
Consider your new provider’s schedule too. April is chaos for everyone in payroll. October brings minimum wage updates and other regulatory changes. Summer often works well. Early autumn can be ideal.
Modern providers handle mid-year switches easily. They’ll import your year-to-date figures and continue seamlessly. Many actually prefer non-April starts because they can give you better attention.
Making the switch work
Once you have picked your transfer time to fit around your business and team capacity, your focus should shift to planning
Time it between pay cycles
Finish one full pay run with your old system, then switch before the next one starts. This avoids splitting payments across two providers.
Communicate early
Tell your team, managers, and employees what’s happening. Most employees just want to know they’ll still get paid correctly and on time. This is especially important if you are swapping epayslip delivery.
Clarify responsibilities
If you switch mid-year, make sure you know who handles what for year-end tasks. Get this in writing with your old provider.
Use your new provider’s expertise
Good providers assign migration specialists who’ve done this hundreds of times. They’ll guide you through data exports, imports, and setup.
There are technical complexities that go along with mid tax year switching, such as ensuring that RTI Payroll ID fields have been updated by your new provider (so HMRC doesn’t think your employees have two jobs!), but this should be routine and part of the first submission by your new provider.
So when is the best time to switch?
The best time to change payroll providers is when it works for your business. Not when the tax calendar says you should.
April switching made sense when payroll systems were primitive. Today’s technology makes it the worst possible timing. You’re adding complexity right when you need simplicity most.
Pick a quiet period. Plan properly. Work with providers who understand modern transitions. Your payroll and your employees will thank you for it.
Don’t wait (especially if you are experiencing bad service)
If your current payroll service isn’t meeting expectations, there’s no need to limp along until April. Moving earlier can mean fewer headaches, better onboarding, and a smoother experience for you and your employees.
At Ascend, we’ve helped businesses transition mid-year without drama. We take care of the details, liaising with your outgoing provider and making sure your first payroll run with us is one you can feel confident about.
If you have any concerns about the best time to switch, or have specific questions about the process, contact us, we are happy to talk through options.
