7 Best Payroll Software for UK Businesses

7 Best Payroll Software for Uk Businesses

7 Best Payroll Software for UK Businesses

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UK payroll software program studies PAYE data robotically after every payroll, retains observe of adjusting labour legal guidelines, manages worker pension deductions, distributes end-of-year P60s and P45s, and is HMRC-compliant. However, one of the best payroll software program layers on performance, equivalent to automation, worker self-service, and superior payroll cadences like managing Development Business Scheme (CIS) returns.

I’ve researched seven prime UK payroll options and ranked them from finest to worst in accordance with an goal scoring rubric.

High payroll software program for UK companies comparability

Plans and pricing are updated as of 17/02/2025.
* Pricing excludes VAT.
** Beginning value is for Xero Develop, the most cost effective plan that features payroll.

Sage Payroll: Finest general

My ranking: 4.25 out of 5

the Sage Logo.
picture sage payroll

Sage Payroll is Sage’s starter payroll platform appropriate for small and medium-sized companies (SMBs). You’ve entry to crucial payroll options, together with computerized Actual Time Data (RTI) submissions to the HMRC for every payroll plus pension enrolments. Sage Payroll additionally consists of primary HR options in each plan, like doc, depart, and absence administration, stopping you from integrating with a third-party human sources data system (HRIS) for this performance.

It’s also possible to mix Sage Payroll with different Sage merchandise for added HR and accounting capabilities. This lets you handle individuals and funds in a single centralised system for extra streamlined processes.

Pricing

With a rating of 4.13 out of 5 for pricing, Sage Payroll charges one of many highest in my roundup as a result of its clear pricing, 30-day free trial, and most cost-effective beginning value. It does get dearer as you progress by way of its product tiers and acquire entry to HR options like org charts and scheduling. However for those who’re involved with affordability, I’d look to BrightPay as an alternative for rapid value financial savings.

Plans:*

  • Payroll Necessities: £10/mo. + 20% VAT
  • Payroll Normal: £20/mo. + 20% VAT
  • Payroll Premium: £30/mo. + 20% VAT

* All plans embody as much as 5 workers. For six workers and extra, you’ll have to pay a further £2, £4, and £6 per thirty days on the Necessities, Normal, or Premium plans, respectively.

Notice: Sage Payroll is at the moment working a three-month free promotion for brand spanking new clients. Take a look at its web site for the newest.

Key options

  • Entry to HR and payroll assist
  • Worker self-service
  • Fundamental scheduling capabilities within the Premium plan
  • Customized automations for approvals in Normal plan and up

Sage Payroll execs and cons

Execs Cons
  • Integrates with Sage Accounting and Sage HR
  • HR options in all plans
  • Simple-to-navigate
  • Timesheet restricted to Normal plan and up
  • 150-employee cap
  • Too simplistic for companies with complicated payroll cadences

Why I selected Sage Payroll

Sage Payroll is a good stepping-stone for brand spanking new companies that should steadiness compliant payroll processes with primary HR options to keep up a small workforce. It’s the solely platform in my lineup to supply each in all its product tiers whereas sustaining a clear pricing construction.

However top-of-the-line causes to go along with Sage Payroll is its over 40 years of expertise with UK corporations and its enterprise-level choice of merchandise to suit any enterprise cadence. This implies you’ll be able to keep throughout the Sage household of merchandise as your small business evolves, lowering information migration complications and new product studying curves.

For instance, when you exceed Sage Payroll’s 150-employee cap, you’ll be able to improve to Sage 50 and entry superior payroll capabilities, equivalent to departmental views of the organisation. This extra granular take a look at enterprise prices permits you to adapt rapidly to monetary headwinds and even help in strategic workforce planning.

Sage Displays Its Payroll Dashboard with a Progress Bar at the Top and a Line Graph Charting the Total Costs of Pay Runs Between January and July of 2022.
view of sage payrolls 4 step payroll course of supply sage

Rent and pay individuals internationally? Take a look at the 5 Finest World Payroll Companies.

BrightPay: Finest for affordability

My ranking: 4.03 out of 5 (if relevant)

Brightpay Logo
picture brightpay

BrightPay is Vivid’s payroll platform resolution that not too long ago launched a cloud model of its desktop utility. BrightPay is the one resolution in my roundup to supply this, making it a extra versatile possibility for those who favour a extra conventional software program expertise.

As a result of BrightPay’s cloud utility is so new, it nonetheless reserves a number of capabilities for its desktop model, equivalent to some statutory payroll studies, doc uploads, and even CIS assist. Within the case of the latter, Vivid permits you to use the desktop model freed from cost to facilitate CIS returns, whereas the others stay on the product’s 2025 roadmap. Apparently, entry to options like employer and worker portals continues to be solely obtainable in BrightPay’s desktop model with the BrightPay Join add-on that gives automated information backup to the cloud.

Pricing

BrightPay presents all of its options to its clients in every plan. Its value relies upon first on whether or not you need a desktop or cloud model after which on what number of workers you’ve gotten.

BrightPay desktop plans

  • As much as 3 workers: £84/12 months + VAT
  • As much as 10 workers: £149/12 months + VAT
  • As much as 25 workers: £239/12 months + VAT
  • Limitless workers: £339/12 months + VAT

BrightPay cloud instance prices*

  • 3 workers: £8.25/mo. + VAT or £84/12 months + VAT
  • 10 workers: £22.95/mo. + VAT or £235.20/12 months + VAT
  • 25 workers: £40.95/mo. + VAT or £415.20/12 months + VAT
  • 50 workers: £68.55/mo. + VAT or £691.20/12 months + VAT
  • 100 workers: £103.55/mo. + VAT or £1,051.20/12 months + VAT
  • 250+ workers: Name for a quote.

It’s also possible to add BrightPay Join, BrightPay’s automated information cloud backup service, to the desktop model for a further month-to-month payment. Plans are based mostly on the variety of workers you’ve gotten, with some instance prices under:

  • 1 worker: £0.65/mo.
  • 5 workers: £2.73/mo.
  • 10 workers: £5.08/mo.
  • 25 workers: £11.38/mo.
  • 50 workers: £20.63/mo.
  • 100 workers: £36.13/mo.
  • 250 workers: £75.13/mo.
  • 500 workers: £130.13/mo.
  • 1000 workers: £210.13/mo.

* The value per thirty days will increase as your headcount will increase. The costs listed are examples. It’s also possible to take a look at BrightPay’s value calculator for extra correct estimates for your small business.

Key options

  • Potential to have a number of pay runs on the identical pay frequency on the cloud model
  • Customisable worker calendar
  • Computerized pension re-enrolment alerts
  • Limitless attachment orders for each worker
  • Per-employee expense and advantages monitoring

BrightPay execs and cons

Execs Cons
  • Help for weekly, fortnightly, 4-weekly, month-to-month, quarterly, and yearly pay frequencies
  • Payroll assist within the UK and Eire
  • Bureau model obtainable for payroll service suppliers
  • Restricted extensibility as a result of few integrations
  • Cellular app restricted to desktop customers with BrightPay Join
  • No native time monitoring performance

Why I selected BrightPay

BrightPay is essentially the most reasonably priced platform in my lineup, incomes a whopping 4.56 out of 5 rating for pricing. It’s because BrightPay’s pricing is clear, doesn’t require a long-term contract (for its cloud model), presents yearly reductions, and gives a 60-day free trial — one of many longest trial durations I’ve ever seen. This provides BrightPay a aggressive edge since you’ve gotten loads of time to demo the product earlier than committing.

BrightPay lacks the accounting options of Xero and QuickBooks and the delicate HR capabilities of ADP iHCM and Rippling. However for those who solely want payroll assist, BrightPay helps all statutory payroll necessities at a fraction of the price of rivals. For instance, with 100 workers, you’ll pay solely £103.55 per thirty days for BrightPay in comparison with £200 per thirty days for Sage Payroll Necessities — a financial savings of 48%.

Brightpay Displays Its Payroll Dashboard with a List of Employee’s Gross Pay, Tax, Net Pay, and Employer Costs for the Pay Period Ending 30 April 2023.
brightpay permits you to view payroll prices at a look with its month to month payslip view supply vivid

Interested in different low-cost payroll choices? Study extra by exploring the hyperlinks under.

Xero: Finest for startups

My ranking: 3.95 out of 5 (if relevant)

Xero Icon.
picture xero

Xero is a small enterprise accounting software program that gives HMRC-compliant payroll in its larger subscription plans. Regardless of this, Xero’s accounting capabilities mean you can entry extra sophisticated payroll assist, equivalent to CIS returns, expense administration, mileage, and undertaking monitoring.

Xero additionally integrates with tons of of HR purposes, together with different payroll platforms like BrightPay, Onfolk, Personio, and Oyster, to simply fill any performance gaps.

Pricing

Xero has 4 subscription tiers to select from: Ignite, Develop, Complete, and Final. Nevertheless, its most cost-effective tier, Ignite, doesn’t embody payroll, that means the least you’ll pay to entry payroll is £33 per thirty days for its Develop plan.

Xero tied with Sage Payroll for pricing, incomes a 4.13 out of 5. It’s because Xero expands its accounting and payroll options with each subscription tier, whereas Sage Payroll focuses on levelling up its HR capabilities.

Plans:

  • Develop: £33/mo. + VAT (as much as 1 individual)
  • Complete: £47/mo. + VAT (as much as 5 individuals)
  • Final: £59/mo. + VAT (as much as 10 individuals)*

* Every further individual after 10 is one other £1 month-to-month for as much as 200 individuals.

Notice: Xero is at the moment working a six-month free promotion for brand spanking new clients. Take a look at its web site for the newest.

Key options

  • Computerized pension assessments, reminders, and enrolments
  • Xero Me worker self-service payroll app
  • Predictive analytics with Analytics Plus within the Complete plan and up
  • Worker reimbursement administration with receipt cellular seize

Xero execs and cons

Execs Cons
  • Accounting, payroll, and worker expertise options in a single place.
  • Consumer-friendly interface.
  • Cellular app for workers.
  • 200-employee cap.
  • Should buy Develop plan to entry payroll.
  • Lacks cellphone technical assist.

Why I selected Xero

Xero is especially well-suited for startups because it combines accounting, payroll, and worker expertise options into one product. As you monitor your organization’s revenue and loss, Xero robotically facilitates pay-as-you-earn (PAYE) HMRC necessities and reconciles payroll prices together with your normal ledger.

Apart from its project-tracking capabilities, equivalent to its in-app time-tracker, Xero’s employee-specific Xero Me cellular utility gives quick access for workers to view and handle payslips, leaves, and bills. For startups with an usually distributed workforce, this is usually a main plus for workers not tied to a desk since they’ll full necessary duties with out a desktop pc.

Xero Payroll Overview Displays Data Like Total Payroll Last Month, Year-to-date Payroll, and Payroll-related Tasks.
with xeros payroll overview youll be able to entry high level payroll information and rapidly view duties like pay runs leaves or timesheets awaiting approval supply xero

 

Study extra about Xero

QuickBooks Payroll: Finest for payroll and accounting

My ranking: 3.92 out of 5 (if relevant)

the Quickbooks Logo.
picture quickbooks

QuickBooks On-line is a widely known accounting resolution that’s a part of Intuit’s small enterprise product portfolio. Like Xero, QuickBooks On-line helps payroll however solely as an optionally available add-on with QuickBooks Payroll. QuickBooks Payroll is an efficient alternative for those who’re already utilizing QuickBooks On-line for accounting functions however want to start out paying workers.

QuickBooks Payroll presents further HR options by way of QuickBooks Time, together with time-off administration, scheduling, and geolocation to forestall time fraud. Though a further value, it is a main plus for those who pay a majority of your workforce at an hourly price.

Pricing

QuickBooks Payroll has two plans, Core and Superior. The Core plan calculates and distributes paychecks, remits RTI to the HMRC, helps weekly and month-to-month pay schedules, and calculates statutory parental and sick leaves. The Superior plan consists of every little thing in Core, plus timesheet administration, computerized pay runs, and extra payroll frequency choices.

Intuit doesn’t reveal the beginning value for its QuickBooks Payroll Core or Superior plans. You additionally must buy QuickBooks On-line first earlier than selecting a payroll plan. QuickBooks On-line plans begin at £16 per thirty days plus 20% VAT. You even have two low cost choices to select from: 90% off the plan’s base value for six months or a one-month free trial.

Key options

  • Computerized pension assessments and enrolment
  • Statutory fee administration
  • Computerized pay runs for administrators and salaried workers on the Superior plan
  • Rotas, timesheets, and expense administration on the Superior plan

QuickBooks Payroll execs and cons

Execs Cons
  • Automation and customisation choices with the Superior payroll plan.
  • Computerized syncing of payroll information with QuickBooks On-line.
  • Aggressive reductions.
  • Restricted to weekly or month-to-month payroll frequencies with the Core plan.
  • Requires the Superior plan for entry to pension suppliers exterior of Nest.

Why I selected QuickBooks Payroll

QuickBooks Payroll’s reference to QuickBooks On-line makes it a strong software for working all of your small enterprise monetary wants in a single place. Though functionally similar to Xero, QuickBooks Payroll is the higher possibility for those who’re on the lookout for extra superior controls, equivalent to monitoring inventory and computerized payroll in its larger plans.

What’s extra, QuickBooks Payroll presents extra in depth HR options that will help you handle your small business’s cash extra successfully. Rota administration, for instance, comes customary in QuickBooks Payroll’s Superior subscription for extra exact worker scheduling that minimises Excel spreadsheet errors. You even have further reporting choices, equivalent to splitting payroll prices by class and division, for extra granular insights into labour prices and income streams.

Quickbooks Payroll Displays Its Payroll Dashboard with Total Labour Costs Between 2021 and 2022 at the Top and Tabs to Access Employees, Pay Runs, Approved Leave, Reports, and Payroll Settings Below.
quickbooks payroll has a user friendly interface that permits you to entry your upcoming pay runs and labour prices alongside your bookkeeping data supply quickbooks

Study extra about QuickBooks Payroll

ADP iHCM: Finest for workforce administration

My ranking: 3.86 out of 5 (if relevant)

Adp Ihcm
picture adp ihcm

ADP presents an array of payroll and HR merchandise to suit quite a lot of enterprise sizes and desires. Its iHCM product features a wholesome mixture of crucial HR instruments that the majority standalone payroll options lack, equivalent to recruiting, efficiency administration, and studying administration.

Apart from its HR options, one other benefit of ADP iHCM is its scalability. The platform helps as much as 1,000 workers, presents an open API to increase the platform’s performance, and might even centralise payroll processing for greater than 140 international locations. This can be a nice possibility in case your operations prolong into mainland Europe, even when these world staff are contractors.

Pricing

ADP doesn’t disclose its costs on-line; it’s essential to contact its gross sales crew for a quote. But it surely does supply three completely different iHCM plans that I outlined under:

  • Important Version: Fundamental payroll, personnel, timesheets, and doc administration.
  • Normal Version: All the things in Important, plus depart and absence administration, onboarding, bills, and entry to its AI software.
  • Superior Version: All the things in Normal, plus superior analytics, efficiency administration, recruitment, and studying administration.

ADP iHCM additionally presents a good variety of add-ons to select from, together with:

  • ADP RealTime: Time and labour administration
  • ADP HR In every single place: Employment authorized recommendation
  • ADP Payroll Disbursement Service: Cash motion providers
  • ADP LocalPay: Managed payroll providers for UK workers in Eire or the Channel Islands
  • ADP BackCheck: On-line employment screening providers
  • APIs for utility integration

Nevertheless, as a result of ADP’s lack of pricing transparency, reductions, and free trial, it scored solely a mere 1.63 out of 5 for pricing.

Key options

  • Unified system for payroll and advantages administration
  • Computerized P60s and P45s technology and submitting
  • Worker portals for managing self-service duties, like accessing payslips
  • Strategic enterprise studies on payroll, recruitment, and employees demographics

ADP iHCM execs and cons

Execs Cons
  • Presents managed payroll providers
  • AI software for optimising processes based mostly on consumer behaviour
  • World payroll assist in 140 international locations
  • Time-tracking and pension compliance are add-on options.
  • Steep studying curve, particularly for brand spanking new companies

Why I selected ADP iHCM

ADP iHCM is the one platform in my prime 5 with options that contact upon each stage of the worker life cycle. I used to be significantly impressed with its optionally available Expertise Cloud module, which has options to assist coaching, upskilling, and retaining employees. When you want a platform with extra complicated payroll schemes alongside options to handle your workforce and put together your small business for the long run, ADP iHCM is my best choice.

Nevertheless, I ought to be aware that ADP’s myriad of merchandise, add-ons, and providers might be fairly complicated and overwhelming for small companies with easy pay cadences. If that’s you, I’d contemplate BrightPay, which nonetheless permits for a number of pay frequencies.

That mentioned, with a complete rating of 3.86, beginning with ADP iHCM could also be simpler to stick with long-term for those who anticipate your small business wants to vary quickly — particularly for those who leverage its managed payroll providers.

a Laptop and a Mobile Phone Display Adp’s Pay Statements Dashboard; the Laptop Shows a Bar Graph with Gross and Net Remuneration Month over Month, While the Mobile Phone Shows a List of 2020 Payslips.
adp ihcm lets workers observe and evaluate their earnings and advantages over time for extra perception into their funds supply adp

Study extra about ADP

Honourable mentions

The next platforms didn’t fairly make my prime 5, however they nonetheless offered some nice options which may higher match the wants of your organisation.

Staffology Payroll by IRIS: Finest for small companies

My ranking: 3.72 out of 5

Staffology Payroll Logo
picture staffology payroll

When to decide on Staffology Payroll by IRIS: When you’ve got fewer than 50 workers and don’t want something however payroll assist, Staffology Payroll is HMRC-compliant, makes use of a easy interface, and might be cheaper than Sage Payroll to start out. Even higher, you’ll be able to bundle Staffology Payroll with Staffology HR to handle small enterprise HR features, like firm handbooks, paperwork, org charts, worker engagement, and rotas.

Why it didn’t make the checklist: Operating payroll in Staffology Payroll continues to be very guide, particularly in comparison with techniques like QuickBooks Payroll and Rippling. Staffology Payroll additionally requires you to combine with both Staffology HR or a third-party HRIS for primary worker self-service, together with viewing payslips.

Rippling: Finest for reporting and analytics

Rippling Logo
picture rippling

When to decide on Rippling: Rippling is an all-in-one HR platform with superior IT, payroll, advantages, attendance, studying, recruitment, and efficiency administration options. Its plans supply superior reporting choices, together with customisable chart visualisations, permitting you to view payroll information alongside metrics like employees demographics for extra in-depth insights.

Why it didn’t make the checklist: Rippling doesn’t reveal its beginning costs, and its payroll performance is an add-on module slightly than included in each plan. Its sheer variety of capabilities will also be an excessive amount of for a small enterprise the place customising workflow automation and apps is much less necessary than error-free payroll and managing enterprise revenue and loss.

UK enterprise payroll software program FAQs

What’s the finest software program for payroll within the UK?

Sage Payroll is among the finest payroll software program techniques within the UK. Its low beginning value of £10 a month to pay 5 workers makes it nice for small companies, and Sage’s extra strong payroll merchandise (Sage 50 and Sage Individuals) assist even greater organisations with tons of to 1000’s of workers.

Different prime UK payroll suppliers embody BrightPay, Xero, and ADP. After all, one of the best UK payroll supplier for you is dependent upon what your funds can accommodate, what options you want, and what number of workers you have to pay.

When you’re making an attempt to decide on a payroll supplier, contemplate signing up for a free trial (if one is obtainable), viewing a demo, or requesting a product tour. First-hand expertise can assist you resolve if a preferred, well-reviewed payroll program is one of the best match for you.

How a lot does payroll software program value within the UK?

Relying on the payroll software program, you’ll both pay a flat month-to-month price or a payment for every individual paid. Sage Payroll, for instance, makes use of each pricing schemes, costing £10 per thirty days for the primary 5 workers after which a further £2 per worker per thirty days for six or extra workers. Typically, the extra workers you have to pay, the dearer the payroll platform.

However, for those who’re new to payroll and wish to minimise payroll prices, I like to recommend making the most of HMRC’s Fundamental PAYE Instruments, which is free to companies with fewer than 10 workers. Notice that it’s a desktop, not a cloud utility.

Can I do my very own payroll within the UK?

Sure, as a UK enterprise proprietor and employer, you are able to do your individual in-house payroll utilizing payroll software program. Make certain to decide on solely HMRC-approved payroll to make sure your small business stays compliant with tax legislation.

Methodology

I picked my selections with you in thoughts.

First, I selected seven UK payroll options to run by way of an goal rubric based mostly on present choices and the critiques of consumers such as you. I then collaborated with a crew of in-house analysis analysts led by Irene Casucian to gather data on every platform’s payroll options, providers, consumer critiques, and technical capabilities. Under is a breakdown of the standards I used to guage every platform:

  • Payroll options: 30%
  • Payroll providers: 25%
  • Platform and interface: 20%
  • Pricing: 15%
  • Help: 10%

Because the market modifications, I reevaluate my selections so that you all the time obtain one of the best perception to your buying resolution.

Replace Notes

Feb. 25, 2025: Jessica Dennis reviewed seven UK payroll options utilizing a brand new scoring rubric. Because of this, Rippling moved to an honourable point out whereas ADP iHCM and Staffology Payroll by IRIS changed FreeAgent and Moneysoft. Jessica additionally rewrote many of the article, offering recent evaluation and skilled insights.

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roosho Senior Engineer (Technical Services)
I am Rakib Raihan RooSho, Jack of all IT Trades. You got it right. Good for nothing. I try a lot of things and fail more than that. That's how I learn. Whenever I succeed, I note that in my cookbook. Eventually, that became my blog. 
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