Payroll teams say they are ready for sweeping new tax rules coming into force in April, but gaps in data, systems and regulatory clarity suggest many organisations may be less prepared than they believe.
New requirements under Joint and Several Liability will give HM Revenue and Customs greater powers to hold multiple parties in labour supply chains accountable for unpaid tax and National Insurance. The changes are expected to increase scrutiny on payroll accuracy, data transparency and audit processes.
While confidence remains high across the profession, concerns about data access and system capability are raising questions about how smoothly organisations will adapt once enforcement begins.
Research by Finity, a payroll technology provider, found that all respondents said they felt confident their organisation was ready for the reforms, despite significant operational challenges reported elsewhere in the data.
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Confidence masks gaps in data and clarity
Three in five respondents said they needed better visibility of payroll data from HM Revenue and Customs, while more than a quarter reported uncertainty around how the new rules will work in practice.
For mid-sized organisations, limited access to payroll data was the most frequently cited issue. Among larger employers, concerns shifted towards whether existing systems could cope with increased compliance and audit requirements.
The findings suggest that confidence may be based more on awareness than on fully developed capability, particularly where organisations are relying on fragmented systems or incomplete data flows.
Legacy systems and manual processes raise risk
Technology limitations are emerging as a major barrier to readiness. Nearly half of respondents said outdated or disconnected payroll systems were preventing full preparedness, while a further 32 percent pointed to reliance on manual processes.
These challenges are particularly significant under the new regime, where organisations will be expected to demonstrate consistent compliance across complex supply chains.
Varun Monteiro, chief executive of Finity, said the reforms were exposing weaknesses that already existed within payroll operations. “What our research really highlights is that JSL is exposing weaknesses in payroll operations, rather than a lack of intent or awareness.”
He said payroll teams were facing increased expectations without always having the tools to meet them. “Payroll teams are being asked to do more, manage greater risk and provide watertight assurance across supply chains, and while they are taking JSL seriously, many feel held back by fragmented data, limited visibility and technology that was never designed for this level of accountability.”
Push for greater data visibility and modern systems
The research points to growing demand for clearer and more accessible payroll data, particularly from HM Revenue and Customs, alongside investment in more integrated systems.
Monteiro said stronger data access and connected systems would be essential for meeting the new requirements. “Crucially, there is a real appetite for more transparent visibility of payroll data at source from HMRC supported by modern, connected payroll systems that can ensure real-time compliance.
“JSL turns compliance into a continuous process and to do that successfully, the profession must feel confident, not just in the people and processes delivering it, but in the underlying systems and data flows that support them.”
He warned that organisations risked being caught out if underlying issues were not addressed. “Without that foundation, organisations risk reaching the April roll-out exposed, even if they feel ready for it.”
Short window to prepare before April rollout
With just over a month until the reforms take effect, payroll teams are under pressure to review systems, processes and supply chain oversight.
Monteiro said immediate action would be critical to reduce risk. He said organisations should focus on strengthening infrastructure and data access ahead of implementation, adding: “With under two months until the reforms take effect, we are urging organisations to review their payroll infrastructure, data access and supply chain processes to ensure they are genuinely JSL-ready.”
He said those that invest early would be better placed to manage compliance demands as enforcement increases. “Only those that invest now in connected payroll systems and clearer data visibility will be well-placed to manage risk across their supply chains as enforcement tightens.”
The research was based on a survey of 342 finance and payroll professionals conducted between December 2025 and January 2026.
