Selecting the right payroll software for your business can be a daunting task. A range of factors such as features, scalability, and pricing need to be considered. In this article, we review the top 16 best payroll software packages available in the UK, focusing on their features, pros, cons, and pricing.
Best payroll software UK
| Software | Pricing | Pros | Cons |
|---|---|---|---|
| 12 Cloud | Starting from £50/month | Highly scalable, Multi-country support, Robust security features, Integrated analytics tools | Complex interface, Expensive for small businesses, Limited customer support, Requires training |
| ADP | Quote-based | User-friendly, Extensive add-ons, Robust customer service, Good mobile accessibility | Pricey for advanced features, Not for very small businesses, Limited customisation, Time-consuming setup |
| BrightPay | Starts at £199/year | Auto-enrolment for pensions, Good customer support, Simple interface, Low annual cost | Limited reporting, Desktop-based, Limited third-party integration, Infrequent updates |
| Cintra | Quote-based | Fully HMRC-compliant, Bespoke solutions, High data security, Public sector specialisation | Limited for SMEs, High set-up cost, Complex interface, Slower customer service |
| FreeAgent | Starts at £14/month | Simple interface, Affordable, Direct filing with HMRC, Supports multiple users | Limited advanced features, No multi-currency, Lacks in-depth analytics, Limited phone support |
| IRIS | Starting from £10/month | Extensive reporting, HR tools integration, Regular updates, Supports various business sizes | Expensive for small businesses, Limited mobile support, Requires training, Customer service could improve |
| MHR | Quote-based | Comprehensive HR suite, Advanced analytics, Highly customisable, Scalable for growth | Complex interface, High upfront costs, Limited online support, Requires training |
| MoneySoft | Starts at £120/year | Affordable, Simple functionality, Quick setup, No-frills interface | Limited add-on features, No mobile app, Limited customisation, Basic reporting |
| Onfolk | Starts at £20/month | Easy to use, Cloud-based, Quick setup, Automated updates | Limited customisation, No advanced analytics, Limited third-party integration, Basic customer support |
| Orbital | Quote-based | Complex pay structures, Scalable, High data security, Advanced analytics | High costs, Not for SMEs, Limited customer service, Requires extensive training |
| Payfit | Starts at £39/month | User-friendly, Customisable, Mobile app, Quick implementation | Limited third-party integration, Expensive for small businesses, Limited reporting, No multi-country support |
| QuickBooks | Starts at £8/month | Integration with accounting, User-friendly, Multiple payment options, Good mobile app | Limited advanced features, Costs can add up, Limited customisation, Lacks robust analytics |
| Sage | Starting from £12.50/month | Reliable brand, Comprehensive features, Good customer support, Highly scalable | Can be expensive, Dated interface, Limited mobile capabilities, Complexity requires training |
| Shape | Starts at £35/month | AI-driven analytics, Modern interface, Customisable dashboard, High data security | Limited customer reviews, Expensive for small businesses, Limited third-party integration, Advanced features require training |
| Xero | Starts at £11/month | Strong mobile features, Good accounting integration, User-friendly, Regular updates | Limited customisation, Costs can add up, Lacks advanced analytics, Limited phone support |
12 Cloud
12 Cloud is tailored for large enterprises, offering advanced features and high scalability. It comes with robust security measures and integrated analytics tools, making it a comprehensive solution for multinational organisations.
Best suited for: Large enterprises looking for a scalable solution with multi-country support.
Pricing: Starting from £50 per month
- Takes 2 minutes
- Receive quotes to compare
- Easy and no commitment
Pros:
- Highly scalable
- Multi-country support
- Robust security features
- Integrated analytics tools
Cons:
- Complex interface
- Expensive for small businesses
- Limited customer support
- Requires training to maximise utility
ADP
ADP stands out for its user-friendly interface and extensive add-ons. Ideal for businesses seeking more than just payroll services, it also offers time and attendance tracking amongst other features.
Best suited for: Medium to large businesses looking for extensive HR and payroll functionalities with a focus on mobile accessibility.
- Give your requirements
- Receive quotes to compare
- Choose a provider or walk away - your choice!
Pricing: Quote-based
Pros:
- User-friendly interface
- Extensive add-ons like time and attendance tracking
- Robust customer service
- Good mobile accessibility
Cons:
- Pricy for advanced features
- Not ideal for very small businesses
- Limited customisation options
- Setup can be time-consuming
BrightPay
UK-based BrightPay is designed for small and medium-sized enterprises. It offers auto-enrolment for pensions and a straightforward, user-friendly interface at a reasonable annual cost.
Best suited for: Small and medium-sized businesses, especially those in need of simple pension auto-enrolment features.
Pricing: Starts at £199 per year
Pros:
- Auto-enrolment for pensions
- Good customer support
- Simple, user-friendly interface
- Low annual cost
Cons:
- Limited reporting capabilities
- Desktop-based; lacks a mobile application
- Limited third-party integrations
- Updates can be infrequent
Cintra
Cintra focuses on bespoke payroll solutions for large enterprises and public sector organisations. With a range of advanced features, it’s tailored for complex payroll requirements, especially for organisations that need to be HMRC compliant.
Best suited for: Large enterprises and public sector organisations with complex payroll needs.
Pricing: Quote-based
Pros:
- Fully HMRC-compliant
- Bespoke solutions
- High data security
- Specialised for public sectors
Cons:
- Limited suitability for SMEs
- High initial set-up cost
- Complex user interface
- Slower customer service response times
FreeAgent
FreeAgent is an affordable and simple solution for freelancers and very small businesses. It allows direct filing with HMRC and supports multiple users, making it a straightforward option for basic payroll needs.
Best suited for: Freelancers and micro-businesses who want an affordable, simple solution with direct HMRC filing.
Pricing: Starts at £14 per month
Pros:
- Simple, intuitive interface
- Affordable pricing
- Direct filing with HMRC
- Supports multiple users
Cons:
- Limited advanced features
- No multi-currency support
- Lacks an in-depth analytics dashboard
- Limited phone support
IRIS
IRIS caters to a wide range of business sizes but is particularly useful for medium to large organisations. It offers extensive reporting capabilities and the potential for integration with other HR tools.
Best suited for: Medium to large businesses that require extensive reporting and HR integration.
Pricing: Starting from £10 per month
Pros:
- Extensive reporting capabilities
- Integration with other HR tools
- Regular software updates
- Supports a wide range of business sizes
Cons:
- Expensive for small businesses
- Limited mobile support
- Requires training to utilise fully
- Customer service could be improved
MHR
MHR provides a robust suite of HR services alongside its payroll offerings. Its advanced analytics dashboard and high customisability make it a complete package for businesses planning for growth.
Best suited for: Businesses looking for a comprehensive HR and payroll package with room for scalability.
Pricing: Quote-based
Pros:
- Comprehensive HR suite
- Advanced analytics dashboard
- Highly customisable
- Scalable for growth
Cons:
- Complex interface
- High upfront costs
- Limited online support resources
- May require in-house training
MoneySoft
MoneySoft offers a simple, no-frills approach to payroll, ideal for SMEs who just want to get the job done. The software is focused on basic, essential functions without complicating the user interface.
Best suited for: Small and medium-sized businesses seeking an affordable, straightforward payroll solution.
Pricing: Starts at £120 per year
Pros:
- Affordable annual pricing
- Simple, focused functionality
- Quick setup
- No-frills interface
Cons:
- Limited add-on features
- No mobile application
- Limited customisation options
- Basic reporting features
Onfolk
Onfolk is a cloud-based solution perfect for businesses that prefer an automated approach to payroll. With a quick setup process and automated updates, it offers an easy-to-use experience.
Best suited for: Businesses seeking a straightforward, cloud-based payroll solution with automation features.
Pricing: Starts at £20 per month
Pros:
- Easy-to-use interface
- Cloud-based
- Quick setup
- Automated updates
Cons:
- Limited customisation options
- No advanced analytics
- Limited third-party integrations
- Basic customer support
Orbital
Orbital offers a solution for enterprises that have complex payroll structures. Its scalable design and high data security measures make it ideal for large organisations.
Best suited for: Large enterprises with complex payroll structures and a need for high data security.
Pricing: Quote-based
Pros:
- Handles complex pay structures
- Scalable for large businesses
- High data security
- Advanced analytics tools
Cons:
- High upfront and monthly costs
- Not suitable for SMEs
- Limited customer service support
- Requires extensive training
Payfit
Payfit offers a user-friendly and highly customisable interface. The software is quick to implement and comes with a mobile app for convenient on-the-go payroll management.
Best suited for: Businesses that want a highly customisable, user-friendly software with mobile app support.
Pricing: Starts at £39 per month
Pros:
- User-friendly interface
- Highly customisable
- Mobile app for on-the-go management
- Quick implementation process
Cons:
- Limited third-party integrations
- Expensive for small businesses
- Limited advanced reporting
- No multi-country support
QuickBooks
QuickBooks offers seamless integration with its accounting software, making it a two-in-one solution for small businesses. Its user-friendly design and multiple payment options provide an easy payroll process.
Best suited for: Small businesses already using QuickBooks for accounting and seeking an integrated payroll solution.
Pricing: Starts at £8 per month
Pros:
- Seamless integration with accounting
- User-friendly interface
- Multiple payment options
- Good mobile application
Cons:
- Limited advanced payroll features
- Monthly costs can add up with add-ons
- Limited customisation options
- Lacks robust analytics features
Sage
Sage is a tried-and-true solution offering a comprehensive set of features. Known for its reliability, it is suitable for businesses of all sizes and offers good customer support.
Best suited for: Businesses of all sizes looking for a reliable, comprehensive payroll and accounting solution.
Pricing: Starting from £12.50 per month
Pros:
- Reliable and reputable brand
- Comprehensive feature set
- Good customer support
- Highly scalable
Cons:
- Can be expensive with add-ons
- Dated user interface
- Limited mobile capabilities
- Complexity requires training
Shape
Shape is a newcomer to the market, offering AI-driven analytics and a modern, user-friendly interface. Its customisable dashboard and high data security make it an interesting option for businesses willing to try new tech solutions.
Best suited for: Businesses looking for a modern, analytics-driven payroll solution and willing to adapt to new technology.
Pricing: Starts at £35 per month
Pros:
- AI-driven analytics
- Modern, user-friendly interface
- Customisable dashboard
- High data security
Cons:
- Limited customer reviews
- Expensive for small businesses
- Limited third-party integrations
- Advanced features may require training
Xero
Xero stands out for its strong mobile functionalities, making it ideal for businesses that require on-the-go payroll management. It offers good integration with accounting software and a user-friendly interface.
Best suited for: Businesses needing a strong mobile payroll solution that integrates well with accounting software.
Pricing: Starts at £11 per month
Pros:
- Strong mobile features
- Good integration with accounting software
- User-friendly interface
- Regular updates
Cons:
- Limited customisation options
- Monthly costs can add up
- Lacks advanced analytics
- Limited phone support
Conclusion
The right payroll software for your business will depend on various factors including the size of your company, the complexity of your payroll needs, and your budget.
This comprehensive comparison aims to serve as a resourceful guide to streamline your decision-making process, offering insights into the pros, cons, and pricing of the top 16 payroll software packages in the UK.
FAQ for best UK payroll software
Below is an FAQ section to address some common questions you may have about selecting a payroll software for your UK business.
Payroll software automates the process of paying salaries to employees, taking into account deductions, benefits, and tax calculations.
It’s not mandatory, but using payroll software can help ensure that you’re in compliance with UK tax laws and regulations, which can be complex.
Yes, you can switch payroll software at any point. However, you will need to carefully migrate all the existing payroll data to the new system.
Key features to consider include tax compliance, reporting capabilities, ease of use, scalability, and customer support.
Some providers offer free versions of their software, but these are typically limited in terms of features and scalability.
Security protocols vary between providers, but most reputable companies offer robust data encryption and security features.
Each has its own pros and cons. Cloud-based software provides accessibility and real-time updates, while on-premises solutions may offer more customisation and control.
Some advanced payroll software options offer multi-currency support, but not all do. Check this feature if your business operates in more than one country.
Many modern payroll software packages are user-friendly and require minimal training. However, some advanced systems may require a learning curve.
Most leading payroll software can integrate with popular accounting systems like QuickBooks, Sage, and Xero.
The cost varies widely based on features, scalability, and the number of employees. Prices can range from as low as £8/month to custom quote-based pricing for larger enterprises.
Cloud-based solutions generally update automatically. For on-premises software, updates may need to be manually installed.
Yes, most payroll software helps with tax calculations and can automatically file reports with HMRC.
Absolutely. Reliable customer support can help resolve issues quickly, which is essential for smooth payroll processing.
Some software allows for high levels of customisation, while others offer a fixed set of features.
Potential downsides include software glitches, a steep learning curve for complex systems, and the possibility of high costs for advanced features.
Most modern payroll software options in the UK can handle auto-enrolment for pension contributions.
Yes, most payroll software can accommodate both hourly and salaried employees.
Most software can handle various types of compensation, including bonuses and commissions, as long as these are set up correctly in the system.
Yes, generating payslips is a standard feature in most payroll software packages.