Best UK payroll software guide – Top 23 packages reviewed

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 23 best payroll software packages available in the UK, focusing on their features, pros, cons, and pricing.


 

Video: Answering your common questions about payroll prices and costs

Best payroll software UK

SoftwarePricingProsCons
12 CloudStarting from £50/monthHighly scalable, Multi-country support, Robust security features, Integrated analytics toolsComplex interface, Expensive for small businesses, Limited customer support, Requires training
12PayFree for up to 9 employeesFree entry-level means low cost of entry for very small businessesNo electronic payslips for free version, extra cost for some modules
ADPQuote-basedUser-friendly, Extensive add-ons, Robust customer service, Good mobile accessibilityPricey for advanced features, Not for very small businesses, Limited customisation, Time-consuming setup
BrightPayStarts at £199/yearAuto-enrolment for pensions, Good customer support, Simple interface, Low annual costLimited reporting, Desktop-based, Limited third-party integration, Infrequent updates
CintraQuote-basedFully HMRC-compliant, Bespoke solutions, High data security, Public sector specialisationLimited for SMEs, High set-up cost, Complex interface, Slower customer service
FreeAgentStarts at £14/monthSimple interface, Affordable, Direct filing with HMRC, Supports multiple usersLimited advanced features, No multi-currency, Lacks in-depth analytics, Limited phone support
IRISStarting from £10/monthExtensive reporting, HR tools integration, Regular updates, Supports various business sizesExpensive for small businesses, Limited mobile support, Requires training, Customer service could improve
MHRQuote-basedComprehensive HR suite, Advanced analytics, Highly customisable, Scalable for growthComplex interface, High upfront costs, Limited online support, Requires training
MoneySoftStarts at £120/yearAffordable, Simple functionality, Quick setup, No-frills interfaceLimited add-on features, No mobile app, Limited customisation, Basic reporting
Moorepay£50/year (estimated)An industry leader, widely used with good reviewsHidden pricing, lack of transparency on fees
OnfolkStarts at £20/monthEasy to use, Cloud-based, Quick setup, Automated updatesLimited customisation, No advanced analytics, Limited third-party integration, Basic customer support
OrbitalQuote-basedComplex pay structures, Scalable, High data security, Advanced analyticsHigh costs, Not for SMEs, Limited customer service, Requires extensive training
PayEscape£53/month base fee, plus £3.20/month per employeeDedicated customer support, easy workflow and usabilityNo free trial, additional charges may apply
PayfitStarts at £39/monthUser-friendly, Customisable, Mobile app, Quick implementationLimited third-party integration, Expensive for small businesses, Limited reporting, No multi-country support
QuickBooksStarts at £8/monthIntegration with accounting, User-friendly, Multiple payment options, Good mobile appLimited advanced features, Costs can add up, Limited customisation, Lacks robust analytics
RipplingStarts at £7 per user per monthGood user experience, modern software, supports international employeesCustomisation adds to price, as does integration with other software
SageStarting from £12.50/monthReliable brand, Comprehensive features, Good customer support, Highly scalableCan be expensive, Dated interface, Limited mobile capabilities, Complexity requires training
SD WorxStarting from £10 per employee per monthWidely used and popular option, also offers international payrollLack of transparency on pricing, additional fees can add up
ShapeStarts at £35/monthAI-driven analytics, Modern interface, Customisable dashboard, High data securityLimited customer reviews, Expensive for small businesses, Limited third-party integration, Advanced features require training
ShiftAIStarts at £2/monthStreamlines payroll and HR tasks with automated features, HMRC compliance, and scalable plans, robust support and integration capabilitiesLearning curve, limits advanced features to higher-tier plans, offers full functionality mainly to iOS users
XeroStarts at £11/monthStrong mobile features, Good accounting integration, User-friendly, Regular updatesLimited customisation, Costs can add up, Lacks advanced analytics, Limited phone support
ZalarisStarts at around £100 per month (estimated)Powerful HR features, suited to larger organisationsComplexity can be overwhelming, adding features can increase costs significantly
ZellisFrom £50/month, but with many other costly modules availableWide range of available features from simple payroll to advanced HR tools (at additional cost)Can be expensive and unnecessarily feature-packed for small businesses
Best UK payroll software for small businesses and large organisations

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

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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

12Pay

12Pay‘s payroll solutions are certified by HMRC and offer a suite of functionalities, including compliance with tax and NI legislation, direct RTI submissions, multiple payslip printing methods, and optional pension auto-enrolment.

Best suited for:

12Pay is well-suited for a diverse range of UK companies, from fledgeling enterprises in need of basic payroll management to expansive organisations requiring robust payroll processing capabilities.

Pricing:

With no charge for the Express service, 12Pay ensures affordability, while the Premium and Bureau services are available at annual fees of £79+VAT and £156+VAT, respectively, plus additional charges for supplementary features.

Pros:

  • Complimentary version for startups
  • Seamless transition to more advanced packages
  • Extensive capabilities with Premium and Bureau options
  • Bureau version caters to an unlimited number of employees and companies

Cons:

  • Express package has limited functionality
  • Extra charges for pension and CIS features
  • Lack of electronic payslip distribution in the free package

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.

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Best suited for:

Medium to large businesses looking for extensive HR and payroll functionalities with a focus on mobile accessibility.

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

Moorepay

Moorepay is a leading UK provider of payroll and HR solutions, offering scalable software and outsourced services tailored to meet the needs of businesses of all sizes, ensuring compliance and efficiency.

Best suited for:

Small to medium-sized enterprises (SMEs) looking for scalable, comprehensive payroll and HR solutions, as well as larger organisations seeking efficient outsourcing services to ensure compliance and streamline operations.

Pricing:

Starts at £50 per year (estimated)

Pros:

  • Scalable solutions for businesses of all sizes
  • Ensures compliance with UK payroll regulations
  • Offers both software and outsourced services
  • Regular software updates included
  • Comprehensive HR integration options

Cons:

  • Initial set-up can be costly
  • Outsourcing may be expensive for large companies
  • Additional services increase overall cost
  • No free trial for software
  • Integration costs can be high

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

PayEscape

PayEscape is a UK-based payroll services provider offering flexible weekly and monthly pricing plans tailored to businesses of all sizes, ensuring efficient and compliant payroll management with dedicated support.

Best suited for:

Small to medium-sized businesses seeking cost-effective, scalable payroll solutions with the flexibility of weekly or monthly processing to match workforce dynamics.

Pricing:

£53 per month base fee, plus £3.20 per employee per month

Pros:

  • Flexible weekly and monthly pricing plans
  • Cost-effective for varying employee counts
  • Dedicated customer support
  • Scalable for businesses of all sizes
  • Streamlines payroll management efficiently

Cons:

  • Additional charges may apply for extra services
  • No free trial mentioned
  • VAT not included in listed prices
  • Limited information on integration with other software
  • Setup process details unclear

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

Rippling

Rippling is an integrated cloud-based platform offering comprehensive solutions for payroll, HR, finance, and IT, streamlining operations with automated processes, compliance management, and customizable features for businesses of all sizes.

Best suited for:

Small to medium-sized businesses looking for a scalable, all-in-one solution to manage payroll, HR, finance, and IT, aiming to streamline operations and ensure compliance efficiently.

Pricing:

Starts at £7 per user per month

Pros:

  • Unified platform for HR, payroll, finance, and IT
  • Automated compliance and tax filings
  • Customisable features and integrations
  • Scalable for businesses of all sizes
  • User-friendly interface

Cons:

  • Starting cost may be high for small businesses
  • Customisations can increase price
  • Integration costs for third-party software
  • Complexity might overwhelm new users
  • Potential for additional fees for advanced 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

SD Worx

SD Worx delivers comprehensive, scalable payroll and HR solutions. Known for reliability, innovation, and customer-centric support, it offers SaaS, managed services, and integrated HR systems for businesses seeking efficient workforce management.

Best suited for:

Businesses of all sizes seeking flexible, reliable payroll and HR solutions that can adapt to their evolving needs, from startups to large multinational corporations.

Pricing:

Starts at around £10 per employee per month

Pros:

  • Comprehensive payroll and HR solutions
  • Scalable for any business size
  • Robust customer support
  • Regular software updates
  • Global compliance expertise

Cons:

  • Can be costly for small businesses
  • Complex setup process
  • Additional costs for extra features
  • Contract termination fees
  • Data migration fees may apply

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

ShiftAI

ShiftAI offers streamlined payroll and HR solutions for UK SMEs, with features like automated HMRC submissions, integrated pensions, employee self-service, and scalable plans with robust support and custom integrations.

Best suited for:

Small to medium-sized UK businesses seeking an efficient, integrated payroll and HR system with HMRC compliance and customisable features.

Pricing:

£2 per month, or £24 per year, per employee.

Pros:

  • Automated Payroll Processing: Saves time and reduces errors with automated tax, pension, and deduction calculations.
  • Integration Capabilities: Seamlessly integrates with popular accounting and pension platforms.
  • User-Friendly Interface: Designed for ease of use without the need for extensive payroll knowledge.
  • Scalable Plans: Flexible pricing plans suitable for startups to SMEs with 100+ employees.
  • Self-Service Portal: Employees can access payslips, request holidays, and update personal information.
  • Mobile Accessibility: iOS app available for on-the-go HR and payroll management.
  • Customer Support: Ranges from basic assistance to priority telephone and Zoom support based on the plan.
  • Time-Saving Features: Average payroll processing time is just 2-4 minutes per month.

Cons:

  • Platform Familiarity: May require a learning curve for users new to payroll software.
  • Mobile App Availability: Currently, only an iOS app is available, potentially excluding Android users.
  • Base Fee: Monthly base fee for certain plans, which might be a consideration for very small businesses.
  • Custom Integrations: Only available on the higher-tier Business Plan, not on the Startup or Premium plans.
  • Demo on Request: For the Business Plan, a demo has to be requested which could delay the evaluation process.
  • Annual Commitment: For the best rates, an annual commitment is required, which might not be preferable for all businesses.
  • Limited Global Functionality: Primarily focused on UK businesses, which may not suit companies with international payroll needs.
  • Advanced Features Limited to Business Plan: Some advanced features are not available on the lower-tier plans.
  • Direct Payments: While ShiftAI allows for payment templates to banks, it doesn’t process payments directly.

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

Zalaris

Zalaris is a leading provider of cloud-based HR and payroll solutions, offering comprehensive services including payroll processing, talent management, and HR analytics across multiple countries.

Best suited for:

Medium to large enterprises seeking scalable, comprehensive HR and payroll solutions with multi-country support and customisation options.

Pricing:

Starting at around £100 per month (estimated)

Pros:

  • Comprehensive HR and payroll services
  • Cloud-based, accessible anywhere
  • Multi-country support for global businesses
  • Customisable solutions available
  • Scalable for growing companies

Cons:

  • Potentially costly for small businesses
  • Complexity may overwhelm small HR teams
  • Customisation can add to overall costs
  • Setup fees for SaaS model

Zellis

Zellis offers comprehensive payroll and HR solutions, integrating seamless payroll processing, human capital management, and real-time reporting for UK businesses, ensuring compliance, efficiency, and scalability across various industries.

Best suited for:

Businesses of all sizes seeking a robust, scalable payroll and HR solution that ensures compliance with UK regulations and offers comprehensive reporting and management features.

Pricing:

Basic payroll starting from £50 per month, but with many additional and costly modules available

Pros:

  • Comprehensive payroll and HR solutions
  • Scalable for businesses of all sizes
  • Ensures compliance with UK regulations
  • Offers real-time reporting features
  • Customisable to specific business needs

Cons:

  • Can be costly for small businesses
  • Complex setup for custom solutions
  • Potential additional costs for premium features
  • Learning curve for new users

Conclusion – Choosing the best payroll software

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.

What is payroll software?

Payroll software automates the process of paying salaries to employees, taking into account deductions, benefits, and tax calculations.

Is it mandatory to use payroll software in the UK?

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.

Can I switch payroll software mid-year?

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.

What are the key features to look for in payroll software?

Key features to consider include tax compliance, reporting capabilities, ease of use, scalability, and customer support.

Are there free payroll software options?

Some providers offer free versions of their software, but these are typically limited in terms of features and scalability.

How secure is my data with payroll software?

Security protocols vary between providers, but most reputable companies offer robust data encryption and security features.

Is cloud-based payroll software better than on-premises solutions?

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.

Can payroll software handle multiple currencies?

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.

Do I need specific training to use payroll software?

Many modern payroll software packages are user-friendly and require minimal training. However, some advanced systems may require a learning curve.

Can I integrate payroll software with accounting systems?

Most leading payroll software can integrate with popular accounting systems like QuickBooks, Sage, and Xero.

How much does payroll software cost?

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.

Do I need to update payroll software manually?

Cloud-based solutions generally update automatically. For on-premises software, updates may need to be manually installed.

Can payroll software help with tax compliance?

Yes, most payroll software helps with tax calculations and can automatically file reports with HMRC.

Is customer support important when choosing payroll software?

Absolutely. Reliable customer support can help resolve issues quickly, which is essential for smooth payroll processing.

Can I customise the features of my payroll software?

Some software allows for high levels of customisation, while others offer a fixed set of features.

What are the potential downsides of using payroll software?

Potential downsides include software glitches, a steep learning curve for complex systems, and the possibility of high costs for advanced features.

Can payroll software handle pension contributions?

Most modern payroll software options in the UK can handle auto-enrolment for pension contributions.

Can I use payroll software for hourly and salaried employees?

Yes, most payroll software can accommodate both hourly and salaried employees.

Can payroll software handle bonuses and commissions?

Most software can handle various types of compensation, including bonuses and commissions, as long as these are set up correctly in the system.

Can I generate payslips through payroll software?

Yes, generating payslips is a standard feature in most payroll software packages.

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