Free tools Windows power users keep installed
One-click scans. No signup required.
There is no single best payroll package for every UK business. Sage Payroll is worth considering for standalone payroll with HR features; Xero and QuickBooks suit businesses already using those accounting systems; and Employment Hero is an option when you want payroll managed as a service. For a free or lower-cost route, compare HMRC Basic PAYE Tools with the limits of your payroll needs. This use-case comparison reflects information available on 4 October 2026; it is not a product test or an HMRC ranking.
What should UK businesses look for in payroll software?
If you run payroll yourself, HMRC says you need software to report PAYE information online unless your business is exempt. HMRC’s recognised-software register confirms that software can report PAYE online; it is not an endorsement or quality ranking. HMRC says it cannot recommend one product over another. HMRC payroll software guidance and its recognised software register explain the distinction.
Before choosing, match the package to your payroll workload, not just its headline price. Check employee limits, multiple PAYE schemes, weekly and monthly pay runs, statutory pay, payslips, pension assessment and contributions, and support for the reports you need, including EPS or EYU where applicable. Confirm whether pension payments can be sent to your provider directly, and whether accounting journals fit your existing process.
- Software or service: identify who enters and checks payroll data, runs pay, submits reports and handles pensions.
- Total cost: add the accounting subscription, employee charges, paid add-ons, VAT and any service fees; distinguish introductory discounts from ongoing rates.
- Changeover: ask about migration, data export and employee Payroll IDs. HMRC warns that a change in IDs may require the FPS payroll-ID-changed indicator; mishandling can lead to incorrect or duplicated PAYE bills and records.
The seven options below are candidates for different situations, not a tested ranking. Verify current availability, feature scope and pricing with each provider before committing.
Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →Which payroll software is best for a small UK business?
1. Sage Payroll — standalone payroll with HR features
Sage describes its cloud payroll as handling PAYE, National Insurance and pension calculations, payslips, and submissions to HMRC and pension providers. It also offers HR features. Sage says payroll can be bought on its own or included with Sage Accounting, so check which arrangement matches your bookkeeping setup. See Sage Payroll.
On Sage’s UK pricing page accessed in 2026, the displayed starting price was £1.20 a month excluding VAT, alongside a promotion of 90% off for three months followed by £12 a month. Sage states that five employees are included in its plans and extra employees cost more. These are vendor-published figures, not a guaranteed quote; calculate the ongoing price for your headcount and confirm the offer at purchase. Sage pricing.
Rank #2
- QUALITY PAYROLL RECORDS: Adams Payroll Record Books provides everything you need to account for your employees' compensation; it tracks hours worked, gross earnings, deductions and net pay
- TWO-PART CARBONLESS FORMS: 2-part carbonless design features white and canary copies to create clear records for employees and management
- WRAP-AROUND COVER: Fold the back cover between sets to keep forms neat and legible
- CONSECUTIVELY NUMBERED: Large 6-digit numbers in the upper right hand corner help you thumb through orders quickly
- 55 SETS PER BOOK: Stock up so you never run out; each books provide 55 carbonless sets
2. Xero Payroll — for businesses already using Xero
Xero says its UK payroll is HMRC-recognised and submits RTI after each pay run. Its listed functions include pay, tax, leave and pension calculations, while employees can use Xero Me for payslips, leave, timesheets and expenses. The payroll allowance varies by Xero accounting tier, and additional employees may cost extra. Check the current tier limits and whether you need to buy or change an accounting plan to get payroll. Xero payroll and Xero pricing plans.
3. QuickBooks Payroll — for businesses using QuickBooks accounting
QuickBooks describes Payroll Core as HMRC-recognised, with automated payroll calculations, direct HMRC submissions, weekly or monthly pay schedules and statutory payment functions. Its UK plan information lists RTI, payslips, auto-enrolment and pension submissions; pension integrations and workforce features vary by plan. Check support for your specific pension provider and the combined price of payroll, accounting and any required add-ons. QuickBooks Core Payroll.
4. BrightPay — recognised software, but confirm the current offer
BrightPay appears on HMRC’s recognised paid-software register. That establishes its PAYE reporting recognition, not whether a particular version suits your business. An independent comparison reports that desktop BrightPay stopped receiving compliance updates after 5 April 2026 and that cloud pricing is quote- or calculator-led; this point is not confirmed here by a current BrightPay pricing page. Ask BrightPay to confirm the supported version, any migration required and the price for your business before choosing. HMRC recognised software register; Which Payroll’s 2026 comparison.
5. Employment Hero Payroll — choose between software and managed payroll
Employment Hero lists Free Payroll, Core Payroll and Managed Payroll. Its UK pricing page accessed in 2026 displayed headline prices of £0, £3 and £12 per employee per month respectively, with a minimum billing basis of 10 users. The actual bill and eligibility depend on the provider’s conditions, so confirm them directly rather than treating “free” as universal.
The key distinction is responsibility: Managed Payroll adds end-to-end managed pay runs, HMRC reporting, RTI and pension-enrolment work. Compare that service with software-only plans by establishing exactly what your team must still do. Employment Hero is on HMRC’s recognised list. Employment Hero UK pricing; HMRC recognised software register.
6. FreeAgent — check current payroll scope and price
FreeAgent is listed by HMRC as recognised PAYE reporting software. The register does not establish its current employee limits, included payroll features or price, so confirm those details with FreeAgent before treating it as a fit. In particular, check whether its current offer covers your pay frequencies, pension workflow and accounting setup. HMRC recognised software register.
7. HMRC Basic PAYE Tools — a free option to assess for simple payroll
HMRC lists Basic PAYE Tools among the free software options for employers with fewer than 10 employees. The employee threshold alone does not show that it will suit your payroll: check current HMRC guidance for feature limits and confirm that it covers your pay arrangements and reporting needs. Do not assume it offers the same pension-provider connections, integrations or support as a commercial package. HMRC recognised software register.
Quick Recap
Which option fits your business?
| Option | Most relevant when | What to verify |
|---|---|---|
| Sage Payroll | You want standalone payroll, or payroll alongside Sage Accounting, with HR features. | Price at your headcount, ongoing rate after any promotion, and employee charges. |
| Xero Payroll | You already use Xero and want payroll connected to its accounting workflow. | Payroll allowance and extra-person charges for the accounting tier you need. |
| QuickBooks Payroll | You already use QuickBooks and want its payroll and accounting workflow. | Pension-provider support and the full subscription and add-on cost. |
| BrightPay | You want to assess a product on HMRC’s paid-software register. | Supported version, desktop-to-cloud status and current quote. |
| Employment Hero Payroll | You are comparing payroll software with a managed-payroll service. | Plan conditions, 10-user minimum billing basis, and what work is managed. |
| FreeAgent | You want to investigate an HMRC-recognised PAYE reporting option. | Current product scope, employee limits, price and pension workflow. |
| HMRC Basic PAYE Tools | You have fewer than 10 employees and want to assess HMRC’s free option. | Whether current feature limits fit your payroll complexity and support needs. |
How to choose and switch payroll software
- Map your payroll: record headcount, expected growth, PAYE schemes, pay frequencies, statutory pay and pension arrangements.
- Confirm compliance tasks: ask providers whether they support the PAYE submissions and pension reporting your business needs, including any required EPS or EYU reporting.
- Price the real setup: compare annual costs at your current and expected employee counts, including VAT, accounting tiers, add-ons and the post-promotion rate.
- Agree responsibility: document who will provide payroll inputs, approve pay, submit RTI, make pension payments and resolve errors—especially if considering a managed service.
- Plan migration: ask how employee records and Payroll IDs will transfer, and follow HMRC’s instructions if IDs change so the appropriate FPS indicator is used.
- Check the fit before payroll day: confirm support, data handling, export access and the exact provider connections you rely on; consult your accountant or payroll adviser if the consequences of a mismatch are material.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
