FreeAgent payroll prices and options review – 2024 UK costs guide

Managing payroll can be a daunting task for many UK businesses. It’s not just about disbursing salaries; it’s about ensuring compliance, managing taxes, and handling a myriad of other details. Recognising this complexity, FreeAgent offers payroll services tailored for UK businesses, be it limited companies, partnerships or LLPs, or sole traders. Here, we focus on the payroll-specific costs and features provided by FreeAgent.

Payroll with FreeAgent – an introduction

FreeAgent’s platform is known for its comprehensive financial management tools – it is a complete accounting package, not just a payroll software.

But when it comes to payroll, FreeAgent ease of use and compliance with UK tax regulations. Whether it’s handling employee payments, deducting taxes, or ensuring that end-of-year filings are accurate, FreeAgent positions itself as a one-stop solution.

Distinctiveness of FreeAgent payroll offerings

A significant differentiator for FreeAgent in the accounting software marketplace is the inclusion of payroll features as standard across all its plans.

While many competitors, including notable names like Xero and QuickBooks, charge an additional fee to integrate payroll functionalities into their primary accounting plans, FreeAgent offers this as an inherent component.

For businesses, this integrated approach not only streamlines financial management but also presents cost savings. With payroll being a fundamental requirement for many, having it embedded within the primary package without the need for additional expenditure provides enhanced value.

This factor positions FreeAgent as a holistic solution, especially for small to medium-sized enterprises looking for comprehensive features without encountering hidden costs.

FreeAgent price and features comparison table

Features	Limited company	Partnerships or LLP	Sole trader
Dashboard	✓	✓	✓
Business Insights with Radar	✓	✓	✓
Estimates	✓	✓	✓
Invoicing	✓	✓	✓
Expenses	✓	✓	✓
Projects	✓	✓	✓
Time Tracking	✓	✓	✓
Payroll	✓	✓	✓
Banking	✓	✓	✓
VAT filing	✓	✓	✓
Self Assessment	✓	✓	✓
End of Year filing	✓	✓
Monthly Price	£14.50 (then £29)	£12 (then £24)	£9.50 (then £19)
Annual Price	£145 (then £290)	£120 (then £240)	£95 (then £190)

Note: All prices are exclusive of VAT. The initial prices for both monthly and annual plans enjoy a 50% discount for a limited time.

Payroll-specific features:

• Time Tracking: Ensures accurate employee hours tracking, which is crucial for hourly paid staff.
• Payroll Management: Streamlines the process of calculating salaries, making deductions, and disbursing payments.
• End of Year filing: Simplifies the process of year-end tax submissions related to employee payments.
• Self Assessment: Facilitates the tax return process for businesses and self-employed individuals.

Understanding FreeAgent’s payroll pricing structure

As mentioned above, FreeAgent includes payroll features as standard across all its plans, so these prices are for the whole FreeAgent package, which includes payroll and many other functions.

Limited company

• Monthly payments: £14.50 + VAT for the first six months (50% off), thereafter £29 + VAT per month.
• Annual payments: £145 + VAT for the first year (50% off), thereafter £290 + VAT annually.

Partnerships or LLP

• Monthly payments: £12 + VAT for the first six months (50% off), thereafter £24 + VAT per month.
• Annual payments: £120 + VAT for the first year (50% off), thereafter £240 + VAT annually.

Sole trader

• Monthly payments: £9.50 + VAT for the first six months (50% off), thereafter £19 + VAT per month.
• Annual payments: £95 + VAT for the first year (50% off), thereafter £190 + VAT annually.

Free payroll processing with FreeAgent

For businesses keen on optimising costs, there’s an attractive proposition to consider: It’s possible to use FreeAgent completely free if you retain a business bank account with NatWest, Royal Bank of Scotland, or Ulster Bank.

Furthermore, businesses making at least one transaction a month through a Mettle bank account can also benefit from this free offering.

Such partnerships and deals highlight FreeAgent’s commitment to delivering value to its users, ensuring they get a comprehensive suite of accounting tools without a hefty price tag, especially when aligned with specific banking services.

Weighing the benefits

When considering payroll services, the cost is just one factor. The real value lies in the peace of mind knowing that payroll is handled correctly and compliantly. FreeAgent’s commitment to easing the payroll process while ensuring compliance with UK regulations makes it a top choice for many businesses.

In wrapping up, if payroll is a significant concern for your business, taking a closer look at FreeAgent’s offerings could be a wise move. With tailored solutions that cater to various business types, it aims to simplify and streamline payroll operations for businesses of all sizes.

FAQ for FreeAgent payroll costs