The start of the new tax year has prompted HBHR to warn that payroll accuracy is becoming a frontline retention issue rather than a back-office detail. The company said employers are facing rising payroll complexity alongside new HMRC requirements, at a moment when workers are already under acute financial pressure.
HMRC has told employers to prepare payroll records and apply the correct tax codes from 6 April 2026, placing extra emphasis on clean data and up-to-date processes.
Callum Pennington, chief executive and co-founder of HBHR, said: “This means that an error or late payslip isn’t simply an admin hiccup. For employees, it is rent, credit scores and family budgets. For employers, it represents churn, damaged trust and increased hiring costs.” He added: “This new tax year should be treated as a reset.”
The warning draws a direct line between payroll resilience and workforce stability, especially where repeated errors can undermine confidence in an employer’s operations.
HBHR said one in three workers are just one late pay cheque away from crisis, while 61% would look for a new job if errors continued. That frames payroll as both a compliance function and an employee experience issue, particularly for businesses managing complex shifts, time tracking, and absence data.
Employers reviewing their systems can check HMRC’s latest payroll instructions for the 2026-27 tax year or the company’s HBHR payroll page as they prepare for the months ahead.
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