The best payroll software in the UK is the one that sends your Full Payment Submission to HMRC on time every payday, handles auto-enrolment and gives staff easy payslips. Some options are free for very small employers. This page lists ten in no particular order, then shows how to choose and set up.
Running payroll in the UK isn't admin you can catch up on later. Every time you pay staff, HMRC expects to hear about it, and pension auto-enrolment adds its own duties. Good payroll software turns that into a routine you barely think about; the wrong one turns payday into a monthly worry.
Below are ten UK payroll options in no particular order, listed alphabetically: free payroll for micro employers, dedicated payroll products for small firms and bureaus, and accounting packages with payroll built in. Each description comes from the provider's own website, re-checked today. Check HMRC's list of recognised payroll software too, and ask your accountant if your setup is unusual.
Ten UK payroll options compared
Yes in the free plan column means the provider's own site describes a free plan, Trial only means a free trial before you choose a plan, and No means you'll start with a demo.
| Tool | Type | Good for | Free plan |
|---|---|---|---|
| BrightPay | Desktop and cloud payroll | Employers wanting unlimited employees | Trial only |
| Employment Hero | Free UK payroll software | Startups running payroll for the first time | Yes |
| FreeAgent | Accounting with payroll | Small firms combining books and payroll | Trial only |
| Moneysoft | UK payroll software | Small firms, agents and CIS contractors | Trial only |
| Paycircle | Cloud payroll platform | Small employers and payroll bureaus | No |
| Primo Payroll | Micro employer payroll | Micro employers with very few staff | Yes |
| Sage Payroll | Cloud payroll from Sage | Start-ups already using Sage | Trial only |
| Shape Payroll | Cloud payroll for SMEs | Growing firms wanting pension integration | No |
| Staffology | Cloud payroll by IRIS | Employers wanting integrated payroll | Trial only |
| Xero | Accounting with payroll | Small teams wanting payroll in their books | Trial only |
UK payroll providers, alphabetically
BrightPay
Best for: Employers and bureaus who want payroll for unlimited employees, with auto-enrolment and payslips included and a 60-day trial to test it first.
Employment Hero
Best for: Startups and first-time employers who want HMRC-recognised payroll with unlimited staff on a plan its site calls free forever.
FreeAgent
Best for: Limited companies wanting monthly payroll inside the same cloud accounting system as their bookkeeping and tax, tried free for 30 days.
Moneysoft
Best for: Accountants, agents and CIS contractors who want straightforward HMRC-recognised payroll software, with a free no-obligation trial first.
Paycircle
Best for: Payroll bureaus and small businesses who want automation to cut payroll admin, starting with a demo of the platform.
Primo Payroll
Best for: Micro employers with a handful of staff who want a free payroll plan, with fuller plans for auto-enrolment and bigger teams as they grow.
Sage Payroll
Best for: Start-ups and small businesses wanting cloud payroll from a familiar accounting vendor, with a one month free trial.
Shape Payroll
Best for: Growing UK businesses and bureaus who want cloud payroll with NEST pensions integration and an employee payslip portal, starting with a booked demo.
Staffology
Best for: Built for employers of many sizes who want cloud payroll that connects to their other systems, with a free trial before they decide.
Xero
Best for: Teams who want payroll bundled into their accounting plan, covering a set number of people, with a month free to try.
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The HMRC payday deadline for every payroll
GOV.UK's guide to running payroll is clear on timing. HMRC says you use your payroll software to send a Full Payment Submission, or FPS, on or before your employees' payday, even if you pay HMRC quarterly instead of monthly. It also says to enter the usual payday date, even if you pay staff earlier or later than that.
So two features matter more than any dashboard. The software should send the FPS as part of running payroll, not as a separate job you might forget, and it should let you record the usual payday when you move a pay run forward for a bank holiday or Christmas. Ask to see both in the trial or demo. If you're unsure about a specific situation, such as paying someone after they've left, check GOV.UK or ask your accountant.
Setting up UK payroll in six steps
- Register as an employer with HMRC before the first payday.
- Gather each employee's details, tax code and starter information.
- Choose software from HMRC's list of recognised payroll products.
- Set your pay frequency and usual payday in the software.
- Set up workplace pension auto-enrolment with your pension provider.
- Run a test payroll, check the payslips, then send your first FPS on or before payday.
Standalone payroll or payroll inside your accounts?
- Free payroll: works well for micro employers with a few staff and simple pay, though extra features may sit on fuller plans.
- Dedicated payroll software: better for bureaus, agents and employers with complex pay, CIS or many employees.
- Payroll in your accounting software: keeps wages and bookkeeping in one place, handy for small limited companies.
- Pensions: check how the software connects to your pension provider, as that's where many manual jobs creep in.
Payroll slips worth avoiding
- Sending the FPS after payday because a pay run went out late.
- Forgetting to record the usual payday when you pay early for a holiday.
- Missing a new starter's details, so their first payslip goes out wrong.
- Running payroll in one tool and keeping pension records somewhere else by hand.
If you're not ready to run HR in-house, my round-up of HR support services for UK small firms covers outside help, and if you're hiring for the first time, here are five ways to settle a new hire's salary.
Do you make UK payroll software? Tool makers can ask to be considered for a featured place on this list.
My plain advice on UK payroll software
If you've got a handful of staff and simple pay, start with a free or entry-level payroll product and check it sends the FPS automatically. If your bookkeeping already lives in a cloud accounting package with payroll built in, use that and keep everything in one place. Bureaus, agents and firms with CIS or complex pay should look at dedicated payroll software and test it with a real pay run during the trial.
Whatever you choose, run your first payroll a few days early. That gives you room to fix a missing tax code or pension detail before payday, rather than discovering it after HMRC was due to hear from you.
Frequently asked questions
What is an FPS?
A Full Payment Submission tells HMRC about your employees' pay and deductions each time you run payroll. GOV.UK says it must be sent on or before payday.
Is there free payroll software in the UK?
Yes. Some providers offer a free plan, often aimed at micro employers or with unlimited staff. Check what's included, such as auto-enrolment.
Do I need HMRC-recognised payroll software?
HMRC publishes a list of recognised payroll software, and choosing from that list is the safest starting point for sending reports to HMRC.
Can I run payroll in my accounting software?
Many cloud accounting packages include payroll, which suits small companies that want wages and bookkeeping together.
What if I pay staff early?
GOV.UK says to enter your usual payday date on the FPS, even if you pay earlier or later.
Does payroll software handle auto-enrolment?
Most UK payroll software includes auto-enrolment tools, but check how it connects to your pension provider.
