Best Payroll Software UK. Guide for business sizes and necessities

If your business has employees, you’ll need to get to grips with payroll. The good news is that there are tools and software available to make it easier.

But which is the best payroll software for UK businesses? In this guide, we’ll run through the best options for organisations of different sizes, and for different business types. We’ll cover everything from price and features to pros and cons, so you can make an informed decision.

Whatever your business needs, there’ll be a solution available to streamline payroll processing - and we’ll help you find it.

We’ll also look at a solution ideal for global companies of all sizes - Wise Business. It offers convenient international mass payout tools, so you can pay staff all over the world for low fees and great exchange rates.

💡Learn more about Wise Business

Best payroll software for small business UK

So, what should you be looking for in payroll software? Small businesses will need to focus on getting the essential payroll services they need, for a low cost - without paying extra for tools they don’t need.

The main features to look for include:

• Ease of use - ideally, no payroll training or experience required to use it.
• Security - your company finance data needs to be safeguarded, as well as confidential employee information.
• Reporting tools - it should be easy to create reports for analysis and for your accounting records.
• Customer support - you need to be able to get help when you need it.
• HMRC certified and Making Tax Digital (MTD) compliant.

Sage Payroll

Sage Business Cloud Payroll is a popular solution for small businesses, from a trusted name in accountancy software.

Features include the following:¹

• Manage payroll for up to 100 employees
• Fully HMRC compatible solution
• Self-serve payslips and P60s for employees in the Sage app
• Reporting and analytics tools
• 24/7 expert support
• Automatically assess and enrol staff into workplace pensions
• Real-time collaboration with your accountant
• Easy setup and import
• Links with Sage Accounting software, where you can automatically track your payroll data.

Sage also has simple pricing tiers available to suit the size of your business. Here’s a snapshot:¹

• £8 a month for 1-5 employees
• £13 a month for 6-10 employees
• £19 a month for 11-15 employees
• £29 a month for 16-25 employees
• £39 a month for 26-35 employees.

Pros ✅	Cons ❌
Easy to use Simple pricing based on business size 24/7 customer support Pay employees in 4 simple steps Cloud-based - so no need to install any software	Not suitable for larger businesses or more complex payroll needs Doesn’t have all the functions of a desktop solution Interface could be more user-friendly

Xero Payroll

Another big name in the world of accounting software, Xero also offers a cloud-based payroll solution suitable for small businesses. It’s HMRC-recognised and offers online automation tools to make tax, payroll and pension calculations easier.

Features of Xero Payroll software include the following:²

• Automated payroll calculations
• Online employee self-service tools through Xero Me - including viewing payslips, submitting timesheets and requesting leave
• Track hours with built-in timesheets
• Fast pension re-enrolment
• Accurate digital pay records and easy submission to HMRC
• Manage CIS scheme deductions and submit returns
• 24/7 online support.

Xero Payroll is available as an optional add-on for Xero Accounting. It’s currently free for 2 months (offer could be changed or withdrawn at any time). After that, you’ll pay £5 per month for up to 5 employees. It’s then £1 extra per month for each additional employee.³

Pros ✅	Cons ❌
Competitively priced for small businesses - pay per employee Save time with automated payroll calculations 24/7 support Self-service functionality for employees online or through the Xero app	Only available as an Accounting add-on (which has a monthly fee from £14) Not suitable for larger or growing businesses Can be expensive if you only need payroll software Setup can take a little while

Best payroll software for medium business UK

If you manage a medium-sized business or your startup is growing, you may need a scaled-up payroll solution.

Medium-sized organisations are likely to need additional features, particularly when it comes to automating tasks and making bulk payments. The more employees, the more complicated and time-consuming payroll can be.

Key factors to look out for when choosing payroll software include:

• Scalability - will the software be able to scale up as your business grows?
• Integration with HR and other accounting tools
• Performance and reliability - you need software that is fast, effective and with minimal downtime.
• Smart automation tools - to save your time and money when processing large volumes of payroll data.
• Custom reporting tools
• Employee self-service capabilities
• Automated tax filing
• HMRC compliance.

QuickBooks Advanced Payroll

Advanced Payroll from Intuit QuickBooks is a step up from its standard payroll software. It’s cloud-based software designed for businesses who need customisable reports, in-depth analysis and HR tools.

Features include:⁴

• Automatic pay runs for directors or salaried employees
• Multiple pension schemes, plus easy assessment and auto-enrolment
• Custom integrations
• Deductions, including salary sacrifice and cycle to work schemes
• HR features, including timesheets, rotas, leave management and expenses.
• 30 additional reports, compared to QuickBooks Core
• HMRC-recognised submissions
• Multiple pay schedules
• Statutory payments.

QuickBooks Advanced Payroll is only available as an add-on when you sign up for QuickBooks Advanced. To get QuickBooks Advanced + Payroll, you’ll pay £70 a month plus £1 a month per employee.⁴

However, there are some discounts available. For example, right now you can get 3 months for free.⁴

Pros ✅	Cons ❌
Free onboarding session available Advanced tools and features, including HR Award-winning UK-based phone support Cancel anytime	Only available with QuickBooks subscription - £70 a month Maximum of 25 users Accountancy services could work out to be more cost-effective

Best payroll software UK for large companies

For larger organisations, payroll becomes significantly more complex. Automated tax filing and compliance with UK payroll regulations both become much more important, along with performance, reliability and security. Plus, integration with HR and accounting tools. The software should also comply with UK data protection laws.

And to save time and resources, features such as employee self-service and automated reporting will also be crucial.

Moorepay Payroll Software

Moorepay Payroll Software is a cloud-based solution built using the latest Microsoft Azure technology. It’s HMRC recognised, as well as being accredited by the CIPP’s Payroll Assurance Scheme.⁵

It’s also award winning, being named Payroll and HR Software Product of the Year 2022 by The Rewards. It’s used by the likes of McDonalds and Huawei.⁵

Moorepay’s main features include:⁵

• Automated calculations
• A full-featured, user-friendly payroll dashboard
• Open API infrastructure, so it can be integrated with existing business software and tools
• Seamless integration with Microsoft Office 365
• New starter wizard tool
• Rapid employee searching
• Timesheets and expenses
• Reporting and analytics
• Auto-enrolment ready
• Reminders and alerts
• Self-service mobile app for employees.
• Free technical support over email or phone - no need to raise a ticket.

Moorepay Payroll doesn’t have standardised pricing, so you’ll need to get a custom quote for a solution that meets the needs of your organisation. You can also book a demo first.

Pros ✅	Cons ❌
Great UK-based customer support Extremely user-friendly Mobile app - which also offers employee self-service functionality Accurate, fully compliant reporting Robust security features	Best for SMEs rather than larger companies No pricing or package details available upfront Other software packages may be cheaper

Best global payroll software

If your business has teams based in other countries, or uses remote freelancers and contractors spread across the globe, you’ll need a different kind of payroll solution.

Managing payroll between countries and currencies will inevitably be complicated. You’ll need access to a number of additional features to help you manage and streamline payroll processing. This includes:

• Support for cross-border payments and wide country coverage
• Compliance with local labour laws and tax regulations
• Tools for international hiring and onboarding
• Enhanced data security standards.

Deel Payroll

Deel Global Payroll lets you run payroll in 100+ countries from one central online platform. It’s used by the likes of Nike, Subway, Dropbox and many more.⁶

Key features include:⁶

• Access to in-house payroll experts, with expertise across local jurisdictions in 100 countries
• Fast 24/7 in-app support
• Integration with global HR services, plus 20+ other integrations
• Consistent reporting in one central system, with a single point of contact
• Fully managed compliance, including employee benefits and deductions, local filing with authorities, salary and tax payments, payslip creation and delivery, and localised contracts.
• Fast employee onboarding
• Global reporting and analytics.

You’ll need to contact Deel’s sales team for pricing for its Global Payroll solution.

Pros ✅	Cons ❌
Payments in multiple currencies Expert support across 100+ countries Support maintaining compliance in international contracts Access to integrated global HR tools	Pricing details not available upfront May be cheaper software packages available

Remote Payroll

Remote Payroll offers international payroll, benefits, taxes and compliances services for businesses of all sizes. It has won multiple awards, including Top Global Payroll Software 2021 by SelectSoftware Reviews.⁷

Key features include:⁷

• A global platform for distributed teams
• Access to in-country local labour law experts to help mitigate compliance risks
• Onboarding platform, including data collection and digital contracts
• Payroll approvals, benefits management and employee documentation
• Simple invoicing across multiple countries
• Employee self-serve tools
• Remote IP Guard to protect your intellectual property.

Like some of the other solutions on our list, you’ll need to get a bespoke quote for Remote Global Payroll services based on your needs.

Pros ✅	Cons ❌
No minimum employee counts or contracts Pay international employees in local currencies User-friendly dashboard and interface Employee self-service tools Customisable reporting and payment plans	Pricing details not available upfront for Global Payroll services Could be expensive for smaller businesses No phone support No free trial

International payments with Wise Business

Wise Business offers a quick, easy and affordable way to make global payments with the real exchange rate. A powerful solution for international payroll – it’s an organised and fast way to pay people all over the world.

Sign up for a Wise Business account and you’ll get access to a cheaper way to make bulk global payments. If you’re making payments in multiple currencies, you’ll always get the real mid-market exchange rate and there's just a low, transparent fee to convert between currencies, so there's no surprises.

Wise is simple to use, and can save you time and money. Make up to 1,000 payments to multiple currencies with the click of a button. There’s no need to manually pay out to vendors or employees. Just fill in one spreadsheet and Wise’s smart tech will do the rest.

Payroll can be automated with the open API, with large volumes of payments distributed in seconds.

💡Read Povio's complete case study

You can automatically sync your activity with accounting software such as Xero and Quickbooks to manage your accounting needs seamlessly - and to meet HMRC and Making Tax Digital compliance requirements.

Wise Business is an authorised and regulated financial services provider, which uses advanced security tools to protect its customers.

Get started with Wise Business 🚀

Best free payroll software UK

If budget is a concern, there are free payroll tools out there. These will inevitably have their limitations, but could still be helpful for new businesses trying to get off the ground.

HMRC Basic PAYE Tools

One of the most commonly used types of free payroll software is HMRC Basic PAYE Tools. It lets you do most standard payroll tasks, including:

• Calculating tax and NI for your employees
• Submitting to HMRC
• Recording employee details
• Producing an ‘employer payment record’ showing how much you need to pay HMRC each month
• Helping you calculate statutory payments
• Producing payslips to print off and give to employees
• Allowing you to claim the NIC Employment Allowance.

Pros ✅	Cons ❌
Free - no subscription fees Basic functions Good for start-ups and small businesses on a budget Relatively straightforward interface	Not designed for organisations with more than 9 employees Limited features No automation tools - risk of errors Unable to assist with automatic enrolment

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After reading this guide, you should have a better idea of your options when it comes to payroll software. We’ve looked at solutions for businesses of all sizes, including those which have globally-dispersed teams. And of course, free payroll solutions.

Armed with this information, you should be all set to compare options and choose the right one for your organisation.

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Sources used:

1. Sage - Sage Business Cloud Payroll
2. Xero - Accounting Software - Payroll
3. Xero - Pricing plans
4. QuickBooks - QuickBooks Advanced
5. Moorepay - Payroll Software
6. Deel - Global Payroll
7. Remote - Get Started

Sources last checked on date: 01-Sep-2023