[UK] Payroll data gaps revealed ahead of HMRC introducing JSL

In the UK, new research shows a widening gap between perceived confidence and operational capability among payroll professionals ahead of HMRC’s introduction of Joint and Several Liability (JSL) in April 2026, Financial IT reports.

In its research, Finity surveyed 342 finance professionals involved in payroll and discovered that 100 per cent feel confident their organisation is ready for the upcoming JSL reforms.

But when questions turned to the biggest barriers preventing full readiness, the data reportedly told a different story. Three in five organisations (60 per cent) say they need greater visibility of payroll data at source from HMRC, while more than a quarter (28 per cent) admit they still lack clarity around the JSL requirements. 

Larger organisations with 250-1,000 employees had limited data visibility as their single biggest barrier to readiness, cited by 72 per cent of respondents. Among the largest employers (1,000+ employees), concerns were raised about whether existing technology can support heightened compliance and audit demands, with ongoing uncertainty about the reforms themselves.

The JSL reforms will grant HMRC greater powers to hold agencies and end clients jointly liable for unpaid tax and National Insurance contributions in labour supply chains, significantly increasing the importance of accurate, timely and transparent payroll data.

The findings reportedly show that technological challenges risk undermining readiness for one of the biggest payroll compliance upheavals in decades.

Nearly half (47 per cent) of respondents cited outdated or disconnected payroll systems as the single biggest barrier to their business’s full preparedness for JSL. Almost a third (32 per cent) said a lack of automation or reliance on manual processes posed the biggest obstacle.

Varun Monteiro - CEO of Finity - said, “What our research really highlights is that JSL is exposing weaknesses in payroll operations, rather than a lack of intent or awareness. 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

“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. Without that foundation, organisations risk reaching the April roll-out exposed, even if they feel ready for it.”

Mr Monteiro has valuable advice for UK employers. He said, “We are urging organisations to review their payroll infrastructure, data access and supply chain processes to ensure they are genuinely JSL-ready. 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.”

Source: Financial IT

(Link and quotes via original reporting)

In the UK, new research shows a widening gap between perceived confidence and operational capability among payroll professionals ahead of HMRC’s introduction of Joint and Several Liability (JSL) in April 2026, Financial IT reports.

In its research, Finity surveyed 342 finance professionals involved in payroll and discovered that 100 per cent feel confident their organisation is ready for the upcoming JSL reforms.

But when questions turned to the biggest barriers preventing full readiness, the data reportedly told a different story. Three in five organisations (60 per cent) say they need greater visibility of payroll data at source from HMRC, while more than a quarter (28 per cent) admit they still lack clarity around the JSL requirements. 

Larger organisations with 250-1,000 employees had limited data visibility as their single biggest barrier to readiness, cited by 72 per cent of respondents. Among the largest employers (1,000+ employees), concerns were raised about whether existing technology can support heightened compliance and audit demands, with ongoing uncertainty about the reforms themselves.

The JSL reforms will grant HMRC greater powers to hold agencies and end clients jointly liable for unpaid tax and National Insurance contributions in labour supply chains, significantly increasing the importance of accurate, timely and transparent payroll data.

The findings reportedly show that technological challenges risk undermining readiness for one of the biggest payroll compliance upheavals in decades.

Nearly half (47 per cent) of respondents cited outdated or disconnected payroll systems as the single biggest barrier to their business’s full preparedness for JSL. Almost a third (32 per cent) said a lack of automation or reliance on manual processes posed the biggest obstacle.

Varun Monteiro - CEO of Finity - said, “What our research really highlights is that JSL is exposing weaknesses in payroll operations, rather than a lack of intent or awareness. 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

“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. Without that foundation, organisations risk reaching the April roll-out exposed, even if they feel ready for it.”

Mr Monteiro has valuable advice for UK employers. He said, “We are urging organisations to review their payroll infrastructure, data access and supply chain processes to ensure they are genuinely JSL-ready. 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.”

Source: Financial IT

(Link and quotes via original reporting)