Compare payroll software for UK small businesses

Choosing the right payroll software can not only save you money; it can also save you valuable time. It’s an important decision to get right, as otherwise you could find yourself wanting to switch provider not long after you’ve set up with one.

Key Takeaways

The best overall payroll software for UK small businesses in 2026 is Sage (£20/month) for up to 10 employees – its key features include CSI, payslips, auto-enrolment and RTI, without requiring any further software. If you are looking for free payroll software, Primo Payroll also supports up to 10 employees and is RTI compliant; however, the software includes paid ads from third parties.

What to Look For in Payroll Software

• Check it is HMRC compatible – all the providers listed in this article are HMRC compatible
• Auto-enrolment pension management
• Simple dashboard
• Integration with other software (accounting/ HR systems/ pension providers)
• Number of employees supported
• Ability to scale up
• Cost
• Trustpilot reviews
• Check whether it is part of an existing ecosystem (e.g. only available with accounting/HR software)

Sage – best overall provider

Sage is an industry-leading payroll provider for UK businesses, combining value-for-money with an easy-to-use dashboard and accuracy. If you already have Sage accounting software, you will automatically integrate to have a complete overview of your business.

Sage is best for small businesses looking to support up to 10 employees with a cloud-based payroll solution. Up to 150 employees can be added easily at additional costs.

Right now, Sage are offering 90% off each plan for six months, making them a competitive option for those on a budget. However, prices will increase after this discount period.

Trustpilot score: 3.8/5 (19,281 reviews)

Pros:

• Easy-to-use dashboard
• Automatically integrates with Sage Accounting
• Auto-enrolment for pensions
• Easy scalability with plans

Cons:

• Discounted price only lasts for six months
• Starts at 10 employees, which may be too may or too few for some small businesses
• Costs to add employees may make the product not as value for money

Xero – best for existing Xero customers

Xero is trusted by millions of businesses worldwide for its accounting software, with payroll an additional feature for existing customers at a small cost. At £1.50 per employee (in Grow and Comprehensive plans), Xero is one of the cheapest providers for price per employee.  

Best for small businesses that already have Xero accounting software.

Xero is currently offering 90% off each plan for the first six months, making them the cheapest non-free payroll solution. However, prices will increase after this discount period, so factor this into your decision.

Trustpilot score: 4.1/5 (10,601 reviews)

Pros:

• Great price-per-employee
• 24/7 customer support
• Good all-in-one accounting and payroll solution

Cons:

• Payroll only available as part of accountancy package
• Discounted price only lasts for six months
• Small minimum number of employees supported per plan

Employment Hero – best combined HR & payroll solution

Employment Hero uses AI to streamline HR and payroll, reducing manual admin and saving users valuable time. Employment Hero does offer a free payroll option separate from HR software with no trial period or credit card needed, which fulfils all the essential requirements of payroll software.

While this will save money, users will maximise the benefits of Employment Hero by choosing an all-inclusive HR plan. You can read our review of their HR software here.

Best for small businesses looking for a combined HR and payroll solution.

Trustpilot score: 3.8/5 (391 reviews)

Pros:

• Free payroll solution with no trial period or credit card required
• Mobile-friendly interface
• Easy dashboard for employees to manage their details

Cons:

• Time saved with Employment Hero payroll might be wasted if you have a separate HR software provider

QuickBooks – best for existing QuickBooks clients

QuickBooks payroll software is only available if you are a QuickBooks accounting customer and comes in two tiers: Core and Advanced. If you don’t use QuickBooks for accounting, you will need to consider whether its accounting prices and features are right for you.

QuickBooks payroll add-ons are £5/month (Core) or £10/month (Advanced) with £1.30/employee/month cost.  

Right now, QuickBooks are offering 90% off for the first six months, which makes them a competitive option in the market. However, prices will increase after this discount period, so factor this into your decision.

Best for businesses already with QuickBooks.

Trustpilot score: 3.9/5 (16,378 reviews)

Pros:

• Low price-per-employee
• Competitive discount
• Familiar with many UK accountants

Cons:

• Requires accounting software to utilise payroll software
• Payroll is an add-on feature with costs

Primo Payroll – best free payroll software

Primo Payroll (by Accentra Technologies) is free for one employer and up to ten employees, offering RTI submission, auto-enrolment, payslips by email, and calculators for gross to net and net to gross. While this provides outstanding value-for-money, you will have adverts in your dashboard.

Best for micro businesses on a budget.

Trustpilot score: 3.9/5 (13 reviews)

Pros:

• Excellent price-per-employee (£0)
• Cloud-based software
• More generous than HMRC’s

Cons:

• Basic interface
• Adverts with free plan
• Low priority software support with free plan

HiBob – best for scaling-up globally

HiBob’s all-in-one HR and payroll software solution is geared towards global businesses and trusted by over 4,400 companies worldwide. Its ability to handle US and UK payroll makes it ideal for companies with a cross-Atlantic presence. However, HiBob’s payroll software is part of its wider HR software plan and cannot be purchased separately.

Best for medium-sized businesses looking to scale-up globally.

Trustpilot score: 4.4/5 (153 reviews)

Pros:

• Simple system design built with users in mind.
• Handles UK and US payroll
• AI tools to help summarise reviews and pull workforce insights

Cons:

• Not a separate payroll software – payroll is part of HR software plan
• Some users have reported customer support response times outside of conventional UK business hours
• Smaller UK-based organisations may find the features exceed their requirements
• Prices must be quoted directly by HiBob sales team

Moorepay – best for switching providers

Moorepay is an award-winning, UK-based, cloud-based payroll software provider ideal for medium-sized businesses with complex payroll requirements. Its software is easy-to-use, packed with automation and available on mobile devices.

While Moorepay boasts a wide range of features, many small businesses may find the offerings excessive to their needs. Moorepay is ideal for medium-sized businesses who need to scale up from their previous provider and are familiar with payroll software.

Trustpilot score: 4.4/5 (1,794 reviews)

Pros:

• 24/7, 365 day customer support
• Free, personalised quote
• Easy to switch from previous provider
• Open API infrastructure allows you to hook your existing software up to your payroll system

Cons:

• Doesn’t cater to international employees
• Startups and small businesses might find the cost and features excessive

Cintra (PSSG) – best for outsourcing payroll

Trusted by Sunderland AFC, Cintra is an award-winning, comprehensive HR and payroll solution based in north-east England. It offers in-house and outsourced payroll. Unlike some providers, Cintra does not offer rolling monthly contracts, instead locking clients into 3-5 year contracts.

Cintra is best for medium-sized businesses considering outsourcing payroll.

Trustpilot score: 3.5/5 (50 reviews)

Pros:

• Ability to outsource payroll with dual-model
• ISO 27001 and Cyber Essentials certified

Cons:

• Trustpilot reviews suggest a declining service
• No public pricing

Which Payroll Software Should You Choose?

While there are various factors that will influence your decision, including whether the payroll software is part of an ecosystem (e.g. only available with accounting/HR software), these are key reasons to choose a provider:

• Choose Sage if you want the best overall product
• Choose Xero if you already have Xero accounting software
• Choose Employment Hero if you want best combined HR and payroll software
• Choose QuickBooks if you already have QuickBooks accounting software
• Choose Primo Payroll if you want the most comprehensive free option
• Choose HiBob if you are scaling globally
• Choose Moorepay if you would like a personalised quote
• Choose Cintra if you might want to outsource payroll later down the line

Frequently Asked Questions

What is Payroll Software?

Payroll software keeps a record of all your employees, how much they should be paid, tax and national insurance contributions. Some payroll software includes the ability to send payslips and keep records.

How Much Does Payroll Software Cost?

Prices are between £7 per month and £33 per month.  

Is There Free Payroll Software?

Yes. HMRC has a list of compatible, free payroll software providers and offers its own Basic PAYE Tools.

Which Payroll Software is Right For Me?

There are several factors that will determine which payroll software is right for you:

• Cost
• Ease of use
• Customer reviews
• Brand reputation
• Ability to expand as your company scales up
• Whether you are already in an existing ecosystem (e.g. you already have the company’s accounting/HR software)

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