Top Payroll Trends Shaping UK Businesses for the 2026/27 Tax Year

We’ve seen a lot of trends in the payroll industry over the years. Some fell to the wayside as quickly as they came in, while others have stayed and fundamentally changed how payroll is processed.

Here are some trends that we believe are here to stay for the 2026/27 tax year.

This blog is part of our series on Payroll Compliance: Payrolling Benefits Regulations and Practices.

Trend 1: Why you should move to cloud payroll for the 2026/27 tax year

At first, the cloud seemed like a fad.

Back then, most people were still bound to their offices and tablets weren’t really used as work devices. So, running payroll from a browser instead of a desktop app was a pretty radical change and wasn’t deemed as necessary.

But now, as you know, things have changed.

Relying on locally installed desktop software is holding you back. Payroll teams need flexibility for the 2026/27 tax year, and only cloud payroll software can offer that.

How?

• Lets you work from absolutely anywhere

• Your team can collaborate on the same file in real time

• Urgent fixes can be done from home

• Software and legislation updates can happen in the background

The same shift towards real-time, connected systems is showing up across payroll legislation too, not just software. See what must employers do for mandatory payrolling of benefits from April 2027 for one of the biggest examples landing soon.

Trend 2: What AI tools actually change how you run payroll?

Initially, a lot of people thought that AI was just a fad. However, that turned out not to be the case. AI is very much here to stay. It’s changing how search engines work and transforming how businesses operate.

But when you, a payroll professional, use AI, you’re not just looking for an email draft or a presentation. You want it to actually change how you conduct your payroll operations on a weekly and monthly basis. And before this tax year, that wasn’t on the cards.

But this tax year, we’re going to do exactly that.

Here at Bright, we’ve got an onboarding AI agent for our cloud payroll software, BrightPay, called Oscar.

Oscar will change your payroll onboarding workflow by:

• Reaching out to new starters on WhatsApp

• Gathering all the details he needs

• Chases them for any missing info

• Pops it all into the software ready for approval

In fact, Oscar completely automates the entire process. This removes all of that nitty gritty admin involved in setting up new starters on BrightPay.

Trend 3: Don’t treat each piece of software separately

You likely use different tools for payroll, HR, and bookkeeping. And while these can be used individually, they shouldn’t be treated as just solo acts.

For a less bumpy workflow, these tools all need to be able to talk to one other. When your systems link up, client data can flow smoothly throughout your firm.

The benefits?

• No more typing the exact same numbers twice

• Save loads of time

• Reduce errors (big time)

For example, BrightPay is integrated with leading bookkeeping software, and has built-in HR features:

• Payroll journals can be sent from BrightPay directly to the general ledger in your bookkeeping platform without you having to leave the system.

• Our built-in HR features let employees submit annual leave requests, with employers being able to accept or reject these requests.

These connected workflows are exactly what separates a system built to last from one that will need replacing in a year or two. See what makes a future-proof payroll platform for the fuller checklist.

How to tell if your payroll software is up to scratch

There are certain pillars of the payroll profession that will always stand the test of time. These include:

• Payroll sitting at heart of businesses

• Clients constantly expecting incredible speed and accuracy

• Regulations always changing

We believe that these trends mentioned above will rewrite how you process payroll and help facilitate those payroll pillars that stand the test of time.

Getting the basics of reward and benefits right matters just as much as adopting new tools. See tax-efficient employee benefits in the UK for 2026 for what’s actually available to offer staff tax-efficiently.

So, if your current setup feels heavy and slow, it’s time for a change.

And we believe that BrightPay is the best choice.

It offers you that cloud foundation, with so many goodies added to the mix. Beyond what we’ve discussed above, we also offer a much faster way to pay employees, batch process static payroll clients in one click, smart integrations with pension platforms, and so much more.

If your firm is ready to take the next step, reach out to a member of our team today.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.