HMRC Confirms Mandatory Registration for Payroll Providers:
What It Means and Why it Matters
From April 2026, payroll providers and tax agents who interact with HMRC on behalf of clients will be legally required to register and meet a new set of minimum standards.
This is part of a wider effort by HMRC to modernise tax administration, improve transparency, and strengthen compliance across the payroll and tax advisory landscape.
What’s Changing?
Until now, there has been no formal registration process for payroll bureaus. While many reputable providers operate with strong internal processes and professional standards, there has been no regulatory requirement to prove it.
That is about to change.
From April 2026, HMRC will:
- Require payroll agents to register directly
- Set minimum professional standards
- Apply these rules to anyone managing payroll on behalf of clients, including accountants, bookkeepers, and payroll bureaus
This brings payroll in line with other regulated financial services where trust and compliance frameworks are already the norm.
Why It Matters to Employers
If you outsource payroll, this change affects who you can work with and how confident you can be in the service you are getting.
Once this measure comes into effect, it will be even more important to ensure:
- Your provider is properly registered
- They meet the standards HMRC expects
- You are not unknowingly exposed to risk through non-compliant partners
The goal is not to create more red tape for small businesses. It is to give you more assurance that your payroll is being handled professionally, securely, and within the law.
What We’re Doing at Intelligent Payroll?
We welcome this change. Raising standards across the industry benefits everyone, especially employers who need to trust the service behind their payroll.
We have already taken steps to ensure we will be registered and compliant well before the deadline. There is nothing you need to do if you are a client. We will handle everything in the background.
A Note for Accountants and Bookkeepers
If you run payroll on behalf of clients, even if it is just a few, you will also need to register. HMRC has been clear that these rules apply to anyone interacting with payroll data on behalf of another business.
If you are unsure how this applies to you, now is a good time to take stock of your setup.
What Should Employers Do Now?
For now, there is no immediate action. But it is worth checking:
- Is your current provider planning for this?
- Are they confident about compliance in time for April 2026?
- Do they have the systems and experience to keep you protected as standards tighten?
If you are not sure, or if you would like a second opinion, we are happy to talk through your options. No pressure. Just clarity.
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Still have questions?
We are here to make payroll simpler, safer, and easier to trust. Get in touch if you would like to know more about how this change might affect your business.
For more information, contact us today or book a demo.