Planning to Switch Payroll Providers? Start Now to Be Ready by April 2026

Posted onJune 24, 2025

Why starting early is key, and how to take control of your payroll transformation

If you’ve just wrapped up payroll year-end, P60s issued, P11Ds on the radar, you might be left thinking: “There has to be a better way.”

Whether you’ve outgrown your current system, struggled with manual workarounds, or face recurring issues with reporting and compliance, you’re not alone. These are precisely the kinds of frustrations our clients bring to us year after year.

A common misconception is that there is plenty of time to make the switch to a new payroll system before the new tax year begins on 6th April 2026. However, when you break down everything involved, it becomes clear: starting now is the smart move.

At Tugela People, we’ve worked alongside mid-sized businesses through every stage of payroll transformation. Our experience shows that last-minute implementations often result in cut corners, rushed decisions, and unnecessary stress.

So, if you're even thinking about changing your payroll setup, here's a step-by-step timeline that outlines what to expect and when to take action to ensure you’re ready for next year.

June -July 2025: Reflect and Reassess

You’ve just navigated the pressures of payroll year-end. This is your opportunity to review what worked and what didn’t.

Ask yourself:

What’s not working in our current payroll setup?
Are manual processes slowing us down?
Have our business needs outgrown the system?
Are we confident in our compliance and reporting?

This is when many of our clients start to realise their current solution is no longer fit for purpose. And crucially, it’s the best time to pause and plan the right next step because the issues you’re facing now will likely resurface next year if no changes are made.

August 2025: Define What You Really Need

Before you jump into software demos, take a step back.

At Tugela People, we recommend that clients begin by creating a detailed specification document that outlines their requirements. Involve key stakeholders, such as HR, Finance, IT, and any other parties impacted by payroll. Make a list of what is crucial for your business, including functionality, automation, service expectations, and integration capabilities. The clearer you are about your needs, the better the outcome will be.

Consider:

Workforce size and growth plans
Legal and compliance requirements (especially if you operate internationally)
Feature must-haves (e.g., self-service portals, automation, reporting)
Integration with existing systems (HRIS, T&A, Finance)

This clarity will help guide your discussions with suppliers and protect you from being distracted and ‘dazzled’ by flashy demos that do not align with your long-term needs. This stage lays the groundwork for everything that follows. Don't skip it!

September–October 2025: Evaluate the Market

Now that you have established your priorities, it is time to explore your options.

This involves assessing the market and identifying the providers best suited to your needs. Use this opportunity to gather reliable, objective information, rather than solely relying on polished presentations.

Carefully evaluate each option against key criteria: functionality, service standards, cultural fit, long-term viability, and how well the solution aligns with your business now and in the future.

During this phase, you should:

Issue RFIs or RFPs based on your defined requirements.
Schedule product demonstrations with shortlisted providers
Request references and review relevant client case studies.
Ask detailed questions about onboarding timelines, implementation support, and time-to-value.
Ensure the solution can scale with your business and integrate with existing systems.

To maintain momentum and stay on track for an April 2026 go-live, aim to finalise your selection and sign contracts by the end of October.

November - December 2025: Set the Groundwork for Implementation

Once you’ve selected a provider, it’s time to start planning your implementation. This stage is often overlooked, but investing time here will pay off in the months ahead.

Start by assembling your internal payroll project team. Include key stakeholders from HR, payroll, finance, IT, and operations, and clearly define roles and responsibilities from the outset. Appoint a project leader who can coordinate across departments and maintain momentum.

Next, establish governance structures. Determine how you’ll track progress, whether through regular check-ins, shared project trackers, or formal escalation routes, and clarify expectations around communication with your provider. Lock in key milestones and agree on who will be responsible for approving deliverables along the way.

It’s also important to consider the practical aspects of the implementation. Identify who will be responsible for collating payroll and employee data, reviewing configuration settings, managing testing, and signing off outputs. Schedule workshops, reviews, and training sessions in stakeholders’ calendars to avoid delays later.

At Tugela People, we often see projects stall at this stage, not due to technology issues, but because internal teams weren’t fully prepared. When clients engage us early in the process, we help them build the right structure, secure buy-in, and stay realistic about timelines. This preparation is what sets successful implementations apart.

January 2026: Prepare and Clean Your Data

This phase is all about preparation.

Your implementation team, including HR, Payroll, Finance, and IT, will need to start compiling and reviewing employee data. It’s an ideal time to cleanse records, correct formatting, eliminate duplicates, and update missing details.

Accurate data = smoother migration = fewer problems.

Your tasks during this stage should include:

Conducting a full audit of current payroll data
Identifying missing, outdated, or duplicate records
Mapping out what data needs to be migrated and specifying the required format
Assigning ownership for preparing and submitting data to the supplier

We often support clients during this stage, particularly when historic data needs restructuring for compliance or reporting purposes. This stage is often overlooked but is critical to the project's success.

February 2026: Configure, Test & Train

Now everything starts to come together.

Your system is configured to align with your payroll policies, and you start to test end-to-end processes. You will start parallel runs, which involve operating the new system alongside the old one to identify any discrepancies. This step is crucial for building confidence and resolving any errors before going live.

At Tugela People, we recommend at least two full parallel pay runs before switching over fully. It's one of the most effective ways to validate accuracy and ensure no one misses a payment.

During this phase, you will also,

Provide your team with comprehensive training
Establish post-go-live support structures
Finalise compliance reporting and workflows
Make any final configuration adjustments

March 2026: Final Adjustments & Readiness

This is the final opportunity for fine-tuning.

During this stage, you will review results from parallel runs, finalise configurations, and confirm that everyone is ready. If any additional training is needed, now’s the time to arrange it.

At Tugela People, we maintain close communication with our clients during this stage to provide reassurance and address any last-minute challenges promptly.

April 2026: Go Live with Confidence

Congratulations! You’re ready to process your first payroll in the new system.

When your first payroll run in the new system arrives, all the preparation and testing will pay off. A smooth go-live is the goal, and with the right foundation, it’s achievable.

At Tugela People, we provide our clients with hypercare support in the early weeks post-implementation, ensuring that they have hands-on guidance, quick issue resolution, and the reassurance that they're not facing those first few runs alone.

May - June 2026: Monitor and Improve

Go-live isn’t the finish line. It marks the start of a continuous improvement cycle. As you settle into your new payroll solution, take time to review your early runs, check for any discrepancies, and ensure reports are accurate. This is the perfect opportunity to fine-tune your workflows based on real usage, identify areas where automation could enhance efficiency, and develop a plan to maintain compliance as regulations change.

The period after go-live is when long-term value begins to accumulate, not just from the software itself, but from how effectively it supports your payroll function and your people.

Payroll isn’t just a monthly process. It’s a strategic function that supports your entire workforce. And when it runs well, people notice in a positive way!

Final Thoughts: Start Now, Avoid the Rush

Changing payroll systems isn’t just a tech project. It’s a transformation that affects people, processes, and business continuity. Anyone who’s closed a tax year under pressure knows that getting a head start makes all the difference. So, if you're looking to be up and running by April 2026, now’s the time to take that first step.

If you're unsure where to start or lack the resources to lead the project internally, our Payroll Consultancy Services are here to help. We will manage the entire project on your behalf, from determining your needs and reviewing current systems to selecting the right solution and overseeing the full implementation. Our experienced consultants become your dedicated project team, ensuring that everything remains on track and nothing gets overlooked.

Switching payroll providers isn't an annual task; it’s something you do infrequently, so it’s essential to get it right. With proper preparation and the right partner, the process can be smooth and stress-free.

Ready to start planning your payroll transformation?

Let’s talk Payroll. If you’re planning a change before the new tax year, get in touch and we’ll help you map out the journey, realistically, strategically, and with confidence. Reach out to us on +44(0)1908 030360 or info@tugelapeople.com. Alternatively, complete the ‘Get in touch’ form, and a member of our team will be in contact with you.