Best payroll software for small businesses

Best payroll software for small businesses


Payroll can be made a whole lot easier if you have the right software. Automating routine tasks and making payment easier for workers, whatever their working and pay structure, will save you time and energy in your day-to-day.

We’ll be looking at some of the best payroll software for small businesses in the UK, including features and pricing.

Payroll software solution reviews

  1. Employment Hero
  2. Sage UK
  3. Xero
  4. Quickbooks
  5. Moorepay
  6. PayFit
  7. HiBob
  8. Cintra (PSSG)
  9. ACCESS UK LTD
  10. Monday.com

How much should I expect to pay for payroll software?

This will vary between platforms. Some offerings, like the one from Employment Hero, have a free option for the most basic package. Be warned that they are more limited.

Others start at a few pounds per user per month (‘per user, per month’ is how these packages are normally priced) but might include extras such as a subscription fee. Be sure to read the terms carefully. If you’re still unsure, many of the following platforms have a free trial period.

As this article was published in January, there will be discounts on some of the products which may have expired by the time you read this.

How we’ve set out these payroll software solutions

Like many other types software, these platforms will offer up largely similar packages. All of the products below are cloud-based and recognised by HMRC, so we’ve tried to pick out some of the more unique features in each.

As well as pricing, we’ve focused on integrations (so that you can integrate existing data into your new payroll platform) and Trustpilot reviews. Bear in mind that reviews might be for a broader product  – say, HR  – rather than payroll specifically. The rating is there to give you an idea of how customers have rated the companies.

Employment Hero

https://employmenthero.com/uk/products/free-payroll-software/

Suitable for any size of business, but a good one if you just need the bare bones.

Features

  • No limit to how many employees you can have on the system
  • Auto submits RTI and PAYE after configuring your payroll only once
  • Be alerted if information is missing
  • Gross-to-net, run variance and pension contribution reports

Trustpilot rating: 3.9 (374 reviews)

Integrations:

Pricing

Free (doesn’t include integrations and PAYE configuration)

Payroll Premium: £2 per employee per month

Payroll Managed: £12 per employee per month

Sage UK

https://www.sage.com/en-gb/sage-business-cloud/payroll

Good for businesses that have 1-150 employees.

Features

  • Additional modules for timesheets, shift scheduling, recruitment and expenses
  • Regular talks and articles from experts around payroll
  • Take software certifications to bolster your knowledge
  • Scalable with the size of your business with flexible modules and plans

Trustpilot rating: 3.8 (19,000)

Integrations:

  • Sage Accounting
  • Deputy
  • Stripe
  • Zapier

Pricing

Payroll Essentials: £2 per month for the first three months; then £20 per month

Payroll Standard: £4 per month for the first three months; then £40 per month

Payroll Premium: £6 per month for the first three months; then £60 per month

Xero

https://www.xero.com/uk/try-now/payroll-software

Suitable for most small businesses.

Features

  • Built-in timesheets
  • Payroll tasks and reminders with calendar view of employee leave and birthdays and upcoming HMRC payment dates
  • Pay different staff at different intervals, such as office workers vs factory workers
  • Set up for IR35 workers with simplified entry of worker information

Trustpilot review: 4.1 (10,000 reviews)

Integrations

  • Stripe
  • Square
  • HubSpot
  • Employment Hero

Pricing

Simple: 70p per month (usually £7)

Grow: £3.70 per month (usually £16)

Comprehensive: £5 per month (usually £50)

Ultimate: £6.50 per month (usually £65)

Quickbooks

https://quickbooks.intuit.com/uk/payroll

Suitable for sole traders and small businesses.

Features

  • No commitment and you can cancel anytime
  • Automatically calculate contractor/sub-contractor deductions from file construction industry scheme taxes straight to the taxman
  • Automatically send details to NEST, Smart Pension, People’s Pension, NOW and Aviva
  • Free onboarding session

Trustpilot review: 4.0 (16,000 reviews)

Integrations

  • Quickbooks Connector apps (Etsy, Square, PayPal, Amazon)
  • Stripe
  • Wise

Pricing

Sole Trader: £1 per month for six months; then £10 per month

Simple Start: £1.60 per month for six months; then £16 per month

Essentials: £3.80 per month for six months; then £38 per month

Plus: £5.60 per month for six months; then £56 per month

Advanced: £12.30 per month for six months; then £123 per month

Moorepay

https://www.moorepay.co.uk/

Suitable for most businesses.

Features

  • Built on Microsoft Azure technology
  • Accredited by the CIPP’s Payroll Assurance scheme
  • Open API infrastructure means you can connect existing software, ensuring more accurate data
  • Bulk upload timesheets

Trustpilot review: 4.5 (1,800 reviews)

Integrations

  • Microsoft 365
  • Sage
  • People HR
  • Dropbox

Pricing

Bespoke

PayFit

https://payfit.com/uk

Separate offerings for businesses with under 25 employees and over 25 employees.

Features

  • Get set up in three steps
  • Allows employees to scan and upload receipts
  • Automatic updates for every payroll regulation
  • Performance review software to help employees work towards their goals

Trustpilot rating: 4.4 (979 reviews)

Integrations

  • Oracle Netsuite
  • Smart Pension
  • Spendesk
  • Leapsome

Pricing

If you have under 25 employees, there are three packages available:

Light: £5 per employee per month + a £29 monthly subscription fee

Standard: £6 per employee per month + £59 monthly subscription fee

Premium: £7 per employee per month + £119 monthly subscription fee

Bespoke packages for businesses with over 25 employees.

HiBob

https://www.hibob.com/features/payroll-hub

Geared towards larger businesses – Growth (fewer than 200 employees), Scale (200-1,000 employees) and Enterprise (1,000+ employees).

Features

  • AI-powered platform connects to data to give you more focused insights
  • Support from CIPP-certified payroll professionals
  • Automate payroll onboarding and termination of employees
  • Support for IR-35 contractors and flexible employees like part-time, zero-hour, seasonal and shift workers with different overtime or hourly rates

Trustpilot review: 4.4 (151 reviews)

Integrations

Pricing

Bespoke

Cintra (PSSG)

https://cintra.co.uk/

Different packages for companies under 200 employees and over 200 employees.

Features

  • Advanced cybersecurity, Cyber Essentials Certified Plus
  • Scale with your business using flexible modules
  • Opportunities for customisation
  • Emergency payroll assistance is available in case BACS fails, for example

Trustpilot rating: 3.5 (50 reviews)

Integrations

  • Xero
  • Microsoft 365
  • Google Workspace

Pricing

Bespoke

ACCESS UK LTD

https://www.theaccessgroup.com/en-gb

Geared more towards medium-large businesses.

Features

  • AI-enabled software experience
  • Expense management tool in the app enables employees to upload receipts and file reimbursement claims for
  • Custom infographics so you can bring your data alive
  • All-inclusive unlimited training

Trustpilot rating: 4.6 (50 reviews)

Integrations

  • Microsoft 365
  • Experian
  • HMRC Making Tax Digital

Pricing

Bespoke

Monday.com

https://monday.com/w/platform

Suitable for most businesses, but has a greater focus on HR than payroll.

Features

  • Time Tracking app
  • Templated checklist for recruitment and onboarding
  • Automated notifications for HR requests
  • Competence management models and performance review templates

Trustpilot rating: 2.8 (3,400 reviews)

Integrations

  • G Suite
  • Calendly
  • Tracket
  • HubSpot

Pricing

Free: £0

Standard: £11 per seat per month

Pro: £17 per seat per month

Enterprise: Bespoke

I’m still not sure about which payroll software to go for

It can be helpful to connect with your network in this case. Your accountant will have a good idea of what’s out there, and your small business network will likely have their own recommendations.

Read more

Hired your first employee?

Here’s how to set up payroll – We’ve teamed up with Sage to explain the basics of payroll. Learn what payroll is, how to register and more

How to spend less time on accounting and payroll – Here some helpful accountancy and payroll software and practices can make the process less complicated and less time-consuming


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