If there’s one thing umbrella payroll firms know all too well, it’s that contractor demand can be a rollercoaster. One month you’re flying—filling roles, onboarding workers, and handling payroll at pace. The next? Market shifts, margins tighten, and you’re staring down another unpredictable quarter.
That’s why more contractor payroll companies are taking a serious look at something new—not to replace what they do best, but to build something stronger around it.
The Hidden Giant: Bureau Payroll
You might be surprised to learn that while umbrella firms support around 660,000 contractors, the UK’s payroll bureau market quietly services nearly 12 million employees. That’s right—millions of workers across SMEs, accountancy firms, and professional services are paid through payroll bureau providers every month. It’s a sector built on stability and scale, and increasingly, it’s calling out for the kind of expertise umbrella firms already have in spades: compliance, speed, and digital systems.
So why the shift now? It’s simple. Employers want fewer systems, more flexibility, and someone who can handle everything—contractors, temps, and permanent staff—all under one roof. Umbrella firms that expand their service offering can meet that demand head-on.
Same Team, New Market
My Digital Payroll, the latest product from cloud-based payroll software provider My Digital, was built to support this shift. It’s designed specifically for contractor payroll businesses looking to step into bureau services—without the cost, confusion, or operational headache.
With this new platform, payroll teams can seamlessly switch between umbrella and bureau models. There’s no jumping between systems, no rekeying of data—just one interface, one login, and all payroll types in one place. And thanks to built-in AI features that automate data imports and reduce manual inputs, the software doesn’t just work well—it saves time, too.
“With My Digital Payroll, we seamlessly expanded our service offering to include payroll bureau, driving growth and diversification,” said Brendan D’Souza, CFO at Bar2. “Expanding our services was a great decision to offset risk and create new revenue streams, and My Digital’s all-in-one system enabled us to run an efficient operation, seamlessly managing both umbrella payroll and payroll bureau services. Our staff can now effortlessly handle all payroll types within the same trusted system. With My Digital’s innovative technology and reliable support, we feel confident in scaling our business for the future.”
A Logical Next Step
The appeal is clear: by adding bureau services, contractor payroll firms can reduce reliance on unpredictable temp volumes and create new, recurring revenue streams. It’s not about reinventing the wheel—it’s about steering it in a smarter direction.
“Over the last decade, we’ve secured our position as a payroll software leader in the temporary workforce space,” said Daniel Moss, CEO of My Digital. “The launch of My Digital Payroll marks the beginning of our expansion into the general payroll market and is a major milestone in our growth journey. Our team has done a fantastic job delivering this product, and many of our existing customers are already seeing the value of broadening their services.”
Contractor payroll firms have the tech, the people, and the experience. What they need now is a bigger playground. My Digital Payroll gives them the tools—and the confidence—to take that next step.
