Best Payroll Software for UK Businesses in 2026
UK payroll needs HMRC Real Time Information submissions, PAYE calculations, auto-enrolment pensions, and year-end reporting. We compared 10+ platforms to find the 5 best UK payroll solutions.
Watch: Best Payroll Software UK
What UK Payroll Needs
HMRC RTI Submissions
Real Time Information (RTI) requires Full Payment Submissions (FPS) on or before each payday. Late or incorrect submissions result in penalties.
PAYE & National Insurance Calculations
Income tax bands, NI thresholds, student loan deductions, and Scottish/Welsh tax rates need automatic calculation with each pay run.
Auto-Enrolment Pension Management
Qualifying employees must be auto-enrolled into a workplace pension. The platform must handle assessment, enrolment, contributions, and pension provider submissions.
Year-End Reporting
P60s, P11Ds, P45s, and the final FPS must be filed accurately. Automated year-end processes prevent costly HMRC penalties.
Top 5 Payroll Software for UK Businesses
Sage Payroll
Best Overall UK Payroll Software
Why It's Best for UK Payroll
Sage is the UK payroll market leader. HMRC-recognised, with the deepest UK payroll functionality including Scottish tax rates, student loan calculations, and pension scheme integration.
Key Features
- HMRC-recognised RTI submissions
- PAYE & NI calculations
- Auto-enrolment management
- Statutory pay (SSP, SMP, SPP)
Additional Features
- Year-end reporting (P60, P11D)
- Scottish/Welsh tax rates
- Multiple pension provider integration
- Payslip generation and distribution
✓ Pros
- UK payroll market leader
- Most comprehensive UK features
- HMRC recognised
- All statutory payments
- Best pension integration
✗ Cons
- Interface feels dated
- Pricing increases with employees
- Can be complex to learn
- Support varies
UK businesses of all sizes wanting the most comprehensive UK payroll
Xero Payroll
Best for Small UK Businesses Using Xero Accounting
Why It's Best for UK Payroll
Xero Payroll is included free with Xero accounting subscriptions. Seamless payroll-to-accounting integration and automatic journal entries make it the obvious choice for Xero users.
Key Features
- HMRC RTI submissions
- PAYE & NI calculations
- Auto-enrolment
- Statutory payments
Additional Features
- Payslip generation
- Holiday pay calculations
- Employee self-service
- Accounting integration
✓ Pros
- Free with Xero accounting
- Seamless accounting integration
- Clean modern interface
- HMRC compliant
- Good for small businesses
✗ Cons
- Less depth than Sage
- Limited pension providers
- Basic for larger companies
- Xero subscription required
Small UK businesses (1-50 employees) already using Xero for accounting
Moorepay
Best Managed Payroll Service for UK
Why It's Best for UK Payroll
Moorepay offers fully managed payroll — they process your payroll for you. Perfect for UK businesses that want to hand off payroll entirely to UK-based experts.
Key Features
- Fully managed payroll processing
- HMRC compliance
- Auto-enrolment management
- Statutory payments
Additional Features
- Payslip distribution
- Year-end reporting
- HR software included
- Dedicated payroll manager
✓ Pros
- Fully managed service
- UK-based payroll experts
- HR software included
- Reduces compliance risk
- Saves internal time
✗ Cons
- More expensive than DIY
- Less control over process
- Dependent on provider
- May require notice for changes
UK businesses (25-500 employees) wanting fully managed payroll
BrightPay
Best Value UK Desktop Payroll
Why It's Best for UK Payroll
BrightPay offers the best value for UK payroll with one-time annual pricing. HMRC-recognised with excellent reviews and a simple, clean interface.
Key Features
- HMRC RTI submissions
- PAYE & NI calculations
- Auto-enrolment
- Statutory pay calculations
Additional Features
- Payslip generation
- Year-end reporting
- BrightPay Connect (cloud add-on)
- Employee self-service
✓ Pros
- Best value pricing (annual fee)
- Highly rated by users
- Clean interface
- HMRC recognised
- Employee self-service
✗ Cons
- Desktop-based (cloud is add-on)
- Less suited for remote teams
- Annual license model
- Limited integrations
UK businesses (5-100 employees) wanting affordable, reliable payroll
PayFit
Best Modern Cloud Payroll for UK
Why It's Best for UK Payroll
PayFit brings modern European cloud payroll design to the UK market. Its clean interface, automated RTI submissions, and excellent employee experience make it the most modern UK payroll option.
Key Features
- Automated RTI submissions
- PAYE & NI calculations
- Auto-enrolment
- Leave management
Additional Features
- Expense management
- Payslip portal
- HR features included
- API integrations
✓ Pros
- Most modern interface
- Good employee experience
- HR features included
- European tech approach
- Growing fast in UK
✗ Cons
- Newer in UK market
- Higher per-employee cost
- Less proven than Sage
- Limited pension providers
Modern UK businesses (10-200 employees) wanting the best payroll user experience
Quick Comparison
| Platform | Pricing | RTI Filing | Auto-Enrolment | Employee Self-Service | Best For |
|---|---|---|---|---|---|
| Sage | From £7/mo | Automated | Full | Yes | All sizes |
| Xero | Included (£15/mo) | Automated | Good | Yes | 1-50 |
| Moorepay | ~£5/ee/mo | Managed | Full | Yes | 25-500 |
| BrightPay | £139/yr+ | Automated | Good | Add-on | 5-100 |
| PayFit | £15+£6/ee | Automated | Good | Yes | 10-200 |
Ready to Choose?
Compare all UK payroll software options with detailed features, pricing, and HMRC compliance information.
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