Best HR Software for UK Businesses in 2026
UK businesses need HR software that handles HMRC compliance, auto-enrolment pensions, statutory leave calculations, and UK employment law. We compared 10+ platforms to find the 5 best for UK companies.
Watch: Best HR Software UK
What UK Businesses Need in HR Software
HMRC Payroll Compliance
Real Time Information (RTI) submissions, PAYE calculations, National Insurance, and year-end P60/P11D reporting need to be automated and accurate.
Auto-Enrolment Pensions
Workplace pension auto-enrolment is mandatory. The platform must handle assessment, enrolment, opt-out management, and pension provider integration.
UK Statutory Leave Management
28 days annual leave, statutory sick pay (SSP), maternity/paternity leave, and shared parental leave require UK-specific calculations.
GDPR & UK Data Protection
UK GDPR requires strict data handling, employee consent management, data subject access requests, and the right to be forgotten.
Top 5 HR Software Platforms for UK Businesses
BreatheHR
Best Overall HR Platform for UK SMEs
Why It's Best for UK Businesses
BreatheHR is built exclusively for UK businesses. Every feature — from holiday calculations to sick leave tracking — follows UK employment law. It's the most popular HR software for UK SMEs.
Key Features
- UK holiday management (28+ days)
- Sickness & absence tracking
- Document storage (GDPR compliant)
- Performance management
Additional Capabilities
- Recruitment module
- Expense management
- Reporting & analytics
- Employee self-service
✓ Pros
- Built specifically for UK
- Most popular UK HR software
- Affordable pricing
- Easy to use
- GDPR compliant by default
✗ Cons
- No payroll (integration needed)
- Limited for international teams
- Basic performance tools
- Not suitable for enterprises
UK SMEs (10-250 employees) wanting purpose-built UK HR software
HiBob
Best for Modern UK Companies with Global Teams
Why It's Best for UK Businesses
HiBob handles UK employment requirements while supporting international teams. Its modern, social interface appeals to UK tech companies and creative businesses.
Key Features
- UK payroll integration
- Holiday management
- Sick leave tracking
- GDPR compliance tools
Additional Capabilities
- People analytics
- Compensation management
- Global workforce support
- Workflow automation
✓ Pros
- Modern and engaging UI
- Good for UK + international
- Strong people analytics
- Culture-building tools
- Growing UK presence
✗ Cons
- Custom pricing
- Payroll needs integration
- Newer in UK market
- Less UK-specific than BreatheHR
Modern UK companies (50-1,000 employees) with international teams
Personio
Best for UK & European Businesses
Why It's Best for UK Businesses
Personio is Europe's leading HR platform with strong UK support. GDPR-native, multilingual, and designed for companies operating across the UK and Europe.
Key Features
- UK payroll preparation
- Absence management
- Recruitment & ATS
- Onboarding workflows
Additional Capabilities
- Performance management
- Document management
- Compensation management
- GDPR-native design
✓ Pros
- Strong European platform
- GDPR by design
- Good for UK + EU operations
- Comprehensive features
- Growing rapidly
✗ Cons
- Payroll is preparation only
- Less US-focused features
- Newer UK market presence
- Custom pricing
UK companies (25-500 employees) also operating in Europe
Sage HR
Best for UK Businesses Using Sage Accounting
Why It's Best for UK Businesses
Sage HR integrates seamlessly with Sage Business Cloud accounting and payroll. For UK businesses already using Sage for finances, it's a natural extension for HR management.
Key Features
- Shift scheduling
- Leave management
- Timesheets
- Performance management
Additional Capabilities
- Recruitment
- Expense claims
- Reporting
- Sage payroll integration
✓ Pros
- Sage ecosystem integration
- Affordable pricing
- Good shift scheduling
- UK-based company
- Simple interface
✗ Cons
- Less modern UI
- Limited standalone value
- Basic performance tools
- Fewer integrations outside Sage
UK businesses (10-250 employees) already using Sage accounting/payroll
BambooHR
Best International HRIS for UK Companies
Why It's Best for UK Businesses
BambooHR is the global HRIS leader with good UK support. For UK companies wanting a platform with strong US/international presence and broad integration ecosystem.
Key Features
- Employee database
- Onboarding workflows
- Performance management
- Time off management
Additional Capabilities
- Applicant tracking
- E-signatures
- Reporting
- Employee satisfaction
✓ Pros
- Most user-friendly HRIS
- Strong integration ecosystem
- Good global presence
- Comprehensive features
- Proven platform
✗ Cons
- Not UK-specific
- Priced in USD
- Limited UK payroll support
- Less UK employment law awareness
UK companies (25-500 employees) with international operations wanting global HRIS
Quick Comparison
| Platform | Pricing | UK Payroll | GDPR | Auto-Enrolment | Best For |
|---|---|---|---|---|---|
| BreatheHR | £4.50/user | Integration | Built-in | Via payroll | 10-250 |
| HiBob | ~£7/user | Integration | Built-in | Via payroll | 50-1,000 |
| Personio | ~£5/user | Preparation | Native | Via payroll | 25-500 |
| Sage HR | £4/user | Sage integration | Built-in | Via Sage | 10-250 |
| BambooHR | ~£4.20/user | Limited | Good | Limited | 25-500 |
Ready to Choose?
Explore our comprehensive HR software reviews to find the perfect platform for your UK business.
View All HR Software