Payroll Data Gaps Exposed Ahead of JSL, with 60% of Professionals Demanding Greater HMRC Data Visibility

Why It Matters

Without real‑time HMRC data and modern payroll infrastructure, firms risk joint tax liability and costly compliance failures under JSL, reshaping risk management across supply chains.

Key Takeaways

• 60% of payroll professionals demand greater HMRC data visibility.
• 72% of 250‑1,000‑employee firms cite limited visibility as top barrier.
• 47% blame outdated payroll systems for JSL unpreparedness.
• 32% identify manual processes as biggest obstacle to compliance.
• HMRC’s JSL reforms make agencies jointly liable for unpaid taxes.

Pulse Analysis

The Joint and Several Liability (JSL) reforms slated for April 2026 represent one of the most sweeping changes to UK payroll compliance in decades. By extending HMRC’s authority to hold both agencies and end‑clients jointly responsible for unpaid tax and National Insurance, the rules force businesses to treat payroll data as a continuous compliance stream rather than a periodic filing exercise. This shift elevates the strategic importance of real‑time data exchange, robust audit trails, and integrated technology platforms that can withstand heightened scrutiny across complex labour supply chains.

Finity’s survey of 342 finance professionals uncovers a stark contrast between confidence and capability. While every respondent believes their organisation is ready, 60% highlight a need for greater visibility of payroll data at source from HMRC. The gap widens for mid‑size firms (250‑1,000 employees), where 72% name limited data visibility as the primary obstacle. At the same time, 47% point to legacy, disconnected payroll systems, and 32% cite reliance on manual processes as the biggest hindrances. These findings suggest that many firms are betting on intent rather than infrastructure, leaving them vulnerable to enforcement actions once the reforms take effect.

The practical implication for businesses is clear: invest now in connected payroll solutions and API‑enabled data flows. HMRC’s ongoing engagement with the industry on API development offers a pathway to the transparency payroll teams crave. Companies that modernise their payroll stacks, automate compliance checks, and secure direct data feeds from HMRC will not only meet JSL requirements but also gain a competitive edge in risk management. Delaying these upgrades could expose firms to joint liability penalties, eroding profit margins and damaging reputation in an increasingly compliance‑driven market.