UK business software / London
HR and payroll software for London employers
London employers pay more, hire more internationally and compete harder for people. These are the HR, payroll and employer-of-record platforms we recommend for London teams, and what to check before you buy.
What is different about employing people in London
- The voluntary London Living Wage is £15.45 an hour, against £14.10 for the real Living Wage elsewhere in the UK and a legal minimum of £12.71 for workers aged 21 and over. Living Wage Foundation
- The 2026/27 Living Wage rates were announced on 15 October 2026, and accredited employers have until 1 May 2027 to pay them. Nearly 17,000 UK businesses pay the rates voluntarily. Living Wage Foundation
If you pay the London Living Wage, or employ people both inside and outside London, choose payroll software that stores pay rates by location and lets you schedule an uplift for a future date, so May rate changes do not mean editing every record by hand. Many London businesses also hire abroad; an employer of record lets you employ people in other countries without setting up a local company.
UK employer rates for 2026 to 2027
| National Living Wage (21 and over) | £12.71 an hour from 1 April 2026 |
|---|---|
| Employer National Insurance | 15% above £5,000 a year (£96 a week) |
| Employment Allowance | £10,500 |
| Statutory Sick Pay | £123.25 a week (or 80% of average weekly earnings if lower) |
| Statutory Maternity and Paternity Pay | £194.32 a week (or 90% of average weekly earnings if lower) |
GOV.UK, Rates and thresholds for employers 2026 to 2027
Every platform below is built for UK payroll and employment, so these rates are applied for you. Check each provider updates them before the start of each tax year.
Software we recommend for London employers
Links to vendors are affiliate links: we may earn a commission if you buy, at no extra cost to you. It does not change which tools we list.
Employer of record
Compare UK employer of record providers- Visit Deel
Deel
Best for: Fast-growing UK companies hiring across multiple regions
Employer of record covering 150+ countries, with a built-in HRIS and automated UK compliance including PAYE and pension auto-enrolment.
- Visit Multiplier
Multiplier
Best for: Budget-conscious UK startups making first international hires
Employer of record with flat, transparent pricing that handles UK statutory requirements including pension contributions, holiday pay and PAYE.
- Visit Velocity Global
Velocity Global
Best for: UK enterprises requiring premium support and immigration services
Employer of record covering 185+ countries with dedicated account management and immigration services, including UK Skilled Worker and Global Talent visas.
Payroll software
Compare UK payroll software- Visit Employment Hero
Employment Hero
Best for: UK businesses wanting HR, payroll and benefits in one platform
Integrated HR and payroll with UK compliance features, an employee benefits marketplace, learning management and automated onboarding.
- Visit HiBob
HiBob
Best for: Mid-size UK companies wanting a modern HRIS with centralised payroll
HRIS with a payroll hub that connects to local payroll providers, plus time and attendance, compensation management and workforce analytics.
- Visit Xero
Xero
Best for: Businesses already using Xero for bookkeeping
Cloud accounting with built-in UK payroll that handles PAYE, National Insurance, pension auto-enrolment and HMRC submissions.
HR software
Compare UK HR software- Visit Deel HR
Deel HR
Best for: UK companies with international teams wanting a free, scalable HR platform
HR platform with a free HRIS tier, people analytics, workflow automation and org charts, with paid modules for payroll, EOR and contractors.
- Visit Moorepay
Moorepay
Best for: UK businesses wanting managed HR services with dedicated support
UK-specialist HR and payroll provider offering managed HR services alongside its software, with support on employment law, absence and employee relations.
- Visit Breathe HR
Breathe HR
Best for: UK SMEs with up to 250 people
UK-built HR software for small and medium businesses: holiday and absence, rotas and shift scheduling, time tracking, performance, recruitment and a Xero payroll integration.
CRM software
Compare UK CRM software- Visit Salesforce
Salesforce
Best for: UK businesses of all sizes wanting the most feature-rich CRM platform
Customer relationship management platform for sales, service and marketing teams.
How to choose in London
Plan for two pay floors
Model your payroll at both the National Living Wage and the London Living Wage, and confirm your software can hold different minimum rates for London and non-London staff.
Check international hiring early
If you expect to hire outside the UK, compare an employer of record with your own payroll before you need it, not when an offer is waiting.
Look at total cost, not seat price
Employer National Insurance at 15% and pension contributions add materially to London salaries. Software that forecasts total employment cost helps with budgeting.
Questions from employers
Do London employers have to pay the London Living Wage?
No. The London Living Wage (£15.45 an hour) is voluntary and paid by accredited employers. The legal minimum is the National Living Wage of £12.71 an hour for workers aged 21 and over.
Which payroll software suits London businesses?
Employment Hero suits businesses wanting HR, payroll and benefits together; HiBob suits mid-size companies wanting a central HRIS; Xero suits businesses already using it for accounts. Check each can hold location-based pay rates.
What is the best employer of record for a London company hiring abroad?
Deel suits fast-growing companies hiring in several regions, Multiplier suits a first international hire on a budget, and Velocity Global suits enterprises that need immigration support.
When do new Living Wage rates take effect?
Rates are announced each autumn. The 2026/27 rates were announced on 15 October 2026 and accredited employers have until 1 May 2027 to implement them.