New research from Finity reveals a growing gap between perceived confidence and operational capability among payroll professionals ahead of HMRC’s introduction of Joint and Several Liability (JSL) in April 2026.
A survey of 342 finance professionals involved in payroll found that 100% say they feel confident their organisation is ready for the upcoming JSL reforms.
However, when asked about the biggest barriers preventing full readiness, the data tells a slightly different story. Three in five organisations (60%) say they need greater visibility of payroll data at source from HMRC while more than a quarter (28%) admit they still lack clarity around the JSL requirements.
For larger organisations with 250–1,000 employees, limited data visibility is the single biggest barrier to readiness, cited by 72% of respondents. Among the largest employers (1,000+ employees), concern shifts to whether existing technology can support heightened compliance and audit demands, alongside ongoing uncertainty about the reforms themselves.
The findings suggest that while confidence levels are high, underlying data visibility, technology capability and regulatory clarity gaps remain, raising questions about how prepared organisations truly are for the practical realities of JSL.
Under the JSL reforms, HMRC will have 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.
Despite strong intent and awareness across the profession, the findings suggest that technological challenges risk undermining readiness for one of the most significant upheavals to payroll compliance in decades.
