Buying payroll software in the UK can be an uphill task.
A simple Google search will bring forth hundreds of options.
So how do you pick the right one?
I did comprehensive research to find some of the best solutions in the market today.
In this article you’ll find:
The methodology that helped me settle on the best payroll software
A thorough evaluation of the top 9 picks
A definition of payroll software
Reasons why people buy payroll software
A comprehensive buyer’s guide to help you choose a solution that will work for you.
Answers to your frequently asked questions
My methodology
There are the steps I took to help me sift through the mountain of possible options. Each step shortened my lists further until I got the best payroll software in the UK.
1. I thoroughly analyzed 30+ solutions and eliminated the ones that didn’t have essential payroll features.
2. Next, I created accounts from the remaining software’ websites and tested the features to see if they worked as well as advertised.
3. I also checked out some user reviews. I needed to see what current and previous users’ experience with the software was.
4. Lastly, I asked myself a couple of questions that would be important to any buyer.
Let’s look under the bonnet.
Best Payroll Software UK
1. Papaya Global
Papaya Global offers more than just payroll outsourcing. It’s a fully-suited workforce management platform that covers 160+ countries.
• Global payroll solution with immigration and compliance oversight
• Advanced human resources information system
• Excellent customer service
Papaya Global Review
Papaya Global is a fully-featured Professional Employer Organization (PEO) for international companies, covering more than 160 countries. The platform handles global payroll services, compliance, onboarding, immigration, contract workers, and benefits. But along with these assets comes a steep price.
1. Products, Prices, and Features
Papaya Global has many features and products, but they don’t come cheap.
2. Pricing
The platform has various payment plans depending on the features offered. This is to accommodate businesses of all sizes.
There’s no limit to the number of employees. Instead, you pay for a chosen subscription “per head.” You can also contact the company directly for custom price quotes.
However, piling services, employees, and other costs makes subscriptions expensive in the long run. With that said, here are the starting prices:
- Full-Service Payroll – starts at $12 monthly per employee
- Payroll Platform License – starts at $3 monthly per employee
- Data and Insights Platform License – starts at $150 monthly per location
- Payments-as-a-Service – starts at $3 monthly per employee
- Employer of Record – starts at $650 monthly per employee
- Contractor Management – starts at $2 monthly per contractor
- Global Expertise Services – starts at $190 monthly per employee
3. Products and Key Features
Papaya Global is a unified HR and payroll platform with a long list of features. These include:
- Global Payroll Platform – This feature allows users to manage a global workforce in 160+ countries, whether employees are on the payroll or contractual. It makes local currency-specific payments following all cycle types. It also administers reports, analytics, cost plans, and benefits.
- Automated Onboarding – It has an intelligent onboarding status tracker for hiring and conducting country-specific onboarding procedures on employees.
- All-purpose Human Resources Information System (HRIS) – The platform has a robust, AI-assisted, highly customizable HRIS that manages various employee needs. It provides reports, mobility, and immigration services, interactive organization charts, and analytics.
- Benefits Management – Papaya Global helps businesses offer benefit packages. They provide access to local experts on insurance policies and different kinds of leaves.
- Global Compliance – The service has compliance oversight. It taps local experts to help businesses in dealing with compliance and equity.
- Integrations – The platform supports integrations like Single Sign-On (SSO) and third-party software like BambooHR, WorkDay, Hibob, and NetSuite.
- Employee Self-Service (ESS) Portal – Papaya Global has a dedicated desktop and mobile portal for all employees. They can use the app for payslips, wage and tax statements, and employment documents.
Ease of Use
One of Papaya Global’s best assets is its straightforward and user-friendly interface. The platform is well-organized, so payroll, onboarding, sending monthly expenses, arranging benefits, and adjustments are easy to navigate.
The ESS portal has an intuitive dashboard. It updates employees on payments, assigned tasks, onboarding, and leaves. It also offers a few helpful tools for mobility and an option to view salaries using their local currency–– which is only fitting since Papaya Global has to cover multiple countries.
Service & Support
Overall, the customer support team behind Papay Global is well-trained, professional, and friendly. Most of the platform’s customers praise its service and support crew.
The point person assigned to you takes a proactive approach to handling your business. They respond to calls and emails fast. They have quick turnarounds with their tasks, and they give timely queries and recommendations. The support crew shines particularly in onboarding, platform training, weekly meetings, and in providing summary reports.
Final Verdict
Papaya Global melds payroll and HR solutions into one workforce management platform capable of maintaining employees worldwide.
It’s great for businesses with international or outsourced staff that need assistance, not just in payroll but also in onboarding, employee management, immigration, mobility, and location-specific laws and compliance.
However, Papaya Global may not be a good fit for small companies. The services they offer come with a hefty price in the long run. Investing in this platform may not be cost-effective if a company hasn’t achieved a particular size yet.
2. Paychex Flex
Paychex is an all-inclusive HR and payroll solution that can easily scale with a growing business.
• Highly detailed, complex payroll solution
• Perfect for businesses of any size
• 24/7 support
Paychex Flex offers an excellent online payroll service in a modular format that makes it easy to scale between small and larger businesses. In addition to payroll, a variety of HR services are also included along with several options for training and 24/7 support.
In addition to the corporate software, employees can download the free mobile app to view and update their information remotely, check their pay and manage their tax.
1. Products, Prices, and Features
At $60 a month, Paychex Flex is not the cheapest software out there since it is aimed at businesses of any size – from 1 to 1000+ employees. However, the software is generally considered to offer good value for money and has the track record to back it up.
The payroll software provides hiring and applicant tracking, onboarding, HR info, health insurance, benefits, payroll checks, time tracking, admin and retirement services. The employee self-service portal allows staff to view their payment info, company policies and job history, request time off and update their info.
2. Ease of Use
The software is quite traditional and plain-looking which belies a strong, robust core that can easily complete any task. This is a serious payroll software for big corporations and dedicated finance companies so small startups might find it a bit stuffy.
However, it works great and gets the job done quickly and efficiently for even the largest and most complex of businesses. New users may need a bit of time learning to navigate the entire system but it works great once you get the hang of it.
Service & Support
Customer service is provided by phone 24/7 which is a huge plus in the payroll software industry. There are also in-person training and webinars available online to get you up and running. The majority of users say customer service is very helpful although they do find they have to make quite a few calls.
TechJury’s Verdict
Paychex Flex is a great solution for bigger businesses and a strong competitor to other costly services like ADP. This is a software package aimed at big corporations so it may not appeal to small startups, especially not at this price.
For businesses that have grown and are now supporting 50+ staff, yet are running older software that is not able to keep up – Paychex will offer a significant improvement. A fair bit of training is required but in the long run, this will pay off well.
3. ADP Workforce
ADP offers real-time analytics that can give a clear picture of costs and productivity. It also allows for quote-based pricing and has an easy-to-use interface.
• Real-time analytics
• Great dashboard
• Useful calculators on website
ADP started off as a manual payroll processing business called Automatic Payrolls way back in 1949. The company proudly boasts that mid-size companies rely on it more than on the next five most-popular payroll and HR providers combined.
Sounds impressive, right? Let’s see what features help this old-timer rank as one of the top payroll software in 2022.
1. Products, Prices, and Features
Prices are quote-based. I requested a customized demo from their website but didn’t actually get one. Alternatively, you can call a toll-free number to talk to a sales rep directly.
Now:
Real-time analytics is one of ADP’s outstanding features. It provides metrics, regulatory reports, and dashboards on costs, retroactive overtime, productivity, and absences, allowing for smarter workforce management.
2. Ease of Use
The interface is easy to navigate and nicely organized. I found the dashboard particularly impressive, as it’s packed full of information without being overwhelming.
Considering the number of features available, ADP Workforce is very well-presented and easy to navigate, even for first-time users. The more complex features do require a modicum of training and the initial setup should be completed with help from ADP support but beyond that, it becomes quite intuitive and efficient to run.
Some users will find the occasional feature that needs upgrading or reconfiguring as new processes become available. So far, ADP appears to be fairly proactive at ensuring updates are distributed and user concerns are addressed as they arise.
3. Available apps and how they perform
ADP Workforce is available for both Windows and Mac OS or online via any web browser. It is widely regarded as one of the best software payroll platforms out there, but as with other complex programs, it requires a fair amount of initial training. For companies that are willing to spend the time and money on training for their staff, the software will be highly beneficial.
The platform runs well on both Mac and Windows systems without the need for additional resources or expensive upgrades. During times of excessive use or when running a large earnings report, it can slow down or occasionally even crash. However, these occurrences are rare and happen no more or less frequently than with any other similar software.
Service & Support
There are several demos to help guide you through the process, though they’re really step-by-step tutorials. There’s also an Articles & Insights section, which features guides and blog posts on various aspects of payroll. Sadly missing is a FAQ section; a list of alphabetically-organized topics would also come in handy.
Apart from that, the Resources section has three useful tools:
- Salary paycheck calculator – do all the gross-to-net pay calculations to estimate net take-home pay in any part of the US.
- 401(k) Planner – estimates the future value of retirement savings based on the interest rate, contribution amount, and current balance.
- Tax guides and forms page – a comprehensive repository of tax and compliance-related forms and materials.
TechJury’s Verdict
ADP is one of the longest-running payroll and HR software providers in the world which gives it a certain edge over other products. While the long history of quality financial and business experience shows, the software does have an air of antiquity about it.
While some of the more modern developers offer web-based products that will impress younger employees, they don’t offer the same range of technical features that ADP Workforce does.
For this reason, ADP Workforce is a highly valued product among both large and medium-sized businesses that require slightly more advanced payroll calculations. It consistently receives five-star reviews from accountants and payroll specialists around the world, solidifying its place on our list of leading payroll software.
4. Gusto
Gusto is a full-service modern payroll software that’s making payroll and benefits processing easy for over 100,000 US-based businesses and employers in all 50 states.
• Customizable plans
• Autopilot feature
• Easy to set up and use
Founded in 2011 as ZenPayroll, Gusto is a company that provides a cloud-based payroll, benefits, and employment contract management software for over 100,000 US-based businesses in all 50 states. It’s also Xero’s preferred payroll partner in the US, so if you’re looking for payroll software on Xero’s US website, you’ll be invited to sign up with Gusto.
1. Products, Prices, and Features
All Gusto products come with a one-month free trial, which is fairly standard with payroll software free trials. You can customize any plan by adding extra benefits like pay-as-you-go workers’ comp, health benefits, 401 (k) retirement, and 529 college savings. Gusto calculates, files, and pays automatically all local, state, and federal payroll taxes.
2. It gets better:
There’s an Autopilot feature, which automatically runs payroll for you one day before your payroll deadlines. Nice! Gusto is clearly a leading payroll automation software.
3. Here’s what you can choose from:
- Core is an easy-to-use payroll for smaller teams that want to keep it simple. It’s priced at $6/mo per person plus a $39 base price. You get full-service payroll, employee profiles and self-service, health benefits administration, workers’ comp administration, best-in-class support, and paid-time-off policies.
- Complete, which is the company’s recommended product, is aimed at busy, growing businesses. It costs $12/mo per person plus a $39 base price. You get everything in Core plus permissions, employee offers and onboarding, simple time tracking, PTO policies and time-off requests, and employee directory and surveys
- Concierge, priced at $12/mo per person plus a $149 base price, is Gusto’s premium product, which provides payroll and certified HR support to protect your business and team by certified HR pros and an HR resource center.
4. Ease of Use
Setting up an account with Gusto payroll is easy and hassle-free. The interface is pared-down and intuitive, and you know exactly how far along the process you are and what to expect next. You can even invite your employees to enter their own personal information to save yourself the bother.
Before you move on to the next step, you get a bulleted list with all the necessary information and/or documents you need to have handy (for example, company bank routing and account number and online banking credentials for step 5, adding a bank account). And should you need help, there’s a link that takes you straight to the relevant article in the Help Center.
5. What’s more:
You’re told approximately how long each step takes, so you can plan ahead. You can skip steps and come back to them later, which is pretty convenient. You don’t have to commit to a plan until the very end of the setup. Then again, you wouldn’t expect anything less from one of the top 11 payroll software options on the market.
And once you’re done with the setup, you’re good to go! The software is sleek and easy to navigate. Everything is broken down into easily manageable steps, and the dashboard allows you to find your way around without any trouble.
6. Available Apps and How They Perform
Gusto offers a cloud-based or SaaS application that can be easily implemented into the IT services of any sized company. The application can be tailored to fit your needs depending on the package you choose, from Core to Concierge.
The software interface is intuitive and easy to use, although it doesn’t offer much in the way of improvement over other similar apps. However, it runs very smoothly and efficiently on multiple browsers and different platforms. It is consistently ranked highly by the majority of users.
Service & Support
The GustoBot offers to put you through to a friendly human if you want to discuss pricing, which is a nice touch. You can chat or speak on the phone with one of the company’s reps from the San Francisco or Denver offices Monday through Friday, 6 am to 5 pm PST. There’s a ticketing system, but you need to create a Gusto account before you can use it.
Apart from that, the help center is well organized and packed with useful information, as is the FAQ section.
You can also read customer stories to get some personal feedback. They’re all from small business owners, which gives you a pretty good idea of Gusto’s target audience.
Lastly, there’s a really neat interactive demo that lets you explore the software’s various features using a fictitious company. You need to have an account to access, but it’s available immediately once you’ve registered, even if you haven’t finished the setup process. You can check out both the admin and employee profiles.
TechJury’s Verdict
Gusto is one of the most widely used web-based payroll software solutions with a long history of customer satisfaction. The simple, attractive interface and calm yet professional demeanor exhibited by both developers and support staff help to make Gusto a highly enjoyable experience for users.
The range of pricing options is an especially important feature that makes Gusto stand out from similar software in the payroll industry. This versatility makes Gusto the perfect product for businesses of any size, without watering-down or overcomplicating its implementation.
5. Intuit Payroll
Intuit payroll software is a UK platform that will give you peace of mind and a happy workforce all while saving you time and money. This software tool offers you access to powerful features such as; HMRC submissions, payslip printing, CIS, automatic enrolment, video support amongst many others.
• Video call support
• Quick and easy set up
• Affordable
Intuit QuickBooks acquired PaySuite cloud-based payroll software in the UK, in 2014. The partnership brought the 5 million+ businesses that were previously PaySuite’s clients to join QuickBooks’s customer base.
Features
Here are Intuit’s features:
1. HMRC submissions
Intuit is one of the UK’s best payroll software because it submits the necessary data to HMRC in real-time. You can set this feature to run automatically to avoid missed filing.
The system then sends you automatic updates so that you can have peace of mind knowing no fines are coming your way.
2. Automatic pension enrolment
Pension enrolment is yet another function that you can set to run automatically with this solution. This is one payroll area that will leave you with enough time to run other areas of your organization.
3. Employee self-service
Your staff can upload their own data to free up your management time.
4. Video support
Sometimes, you just want to talk to a real person when experiencing an issue with any software.
Aside from phone and online chat, this solution has a video call feature, which makes it one of the top payroll software in the UK. Here you can get to see instructions on the support person’s screen in real-time. Quite unusual, but extremely useful.
5. Real-time insights
This software comes with inbuilt reports to help you understand your payroll data better. The documents will give you better insights into things like staffing costs, leave requests, or rotas.
6. Construction Industry Scheme (CIS)
If you’re a business in the construction space, then this solution is ideal for you. It supports HMRC’s CIS on both plans.
7. Payslip creation
With this solution, you can create and send payslips to your staff via email. The payslips show things like deductions and net pay in case your employees want to follow up on anything.
This software is also a payslip generator for UK employees. Your team can print them out if they wish to.
Pricing
Intuit allows you to save 50% of the initial costs for six months. Note that you have to subscribe to at least one QuickBooks plan and choose payroll as an add-on. Here are the software’s pricing options:
- Standard payroll – £4/month+£1/month or each employee
- Advanced payroll – £8/month+£1/month or each employee
Verdict
Intuit is a reliable payroll tool for the construction industry, but it can work with any other business type in the UK. Some of this tool’s features include HMRC submissions, payslip printing, CIS, automatic enrolment, and video support.
Note that the solution can be difficult to troubleshoot because there are too many steps. Therefore, it becomes hard trying to figure which part of the process is causing the issue.
The good news is that Intuit has 24/7 support to assist you whenever you get stuck.
6. Rippling
With Rippling, your business can say goodbye to the tedious tasks of using calculators and manually entering data for payroll. Rippling streamlines the process by automatically syncing employee hours, deductions, and other relevant data, ensuring accuracy and efficiency in your payroll operations.
• Outstanding customizability
• Global payroll
• Templates gallery for reports and automations
7. Sage Business Cloud Payroll
Sage payroll software for UK businesses has an extensive set of features. This system is HMRC compliant and is one of the easiest to use for in-house payroll control. Sage Payroll has the latest payroll features such as RTI, automatic enrolment and adjustment, full compliance, and many more.
• User-friendly
• Robust reporting
• Built-in payslip printer
Sage Payroll is a subset of the Sage Group, a startup that has been in operation since 2011. Today, the company is present in 23 countries and has a customer base of 1,000,000+.
Features
Here are Sage Payroll’s features:
1. RTI ready
Sage Payroll offers real-time information reporting, which makes PAYE submission easier. You can use this software to submit Real-Time Information (RTI) digitally every time you pay your staff.
If you’re looking for a solution that complies with HMRC, then this platform is perfect for you. This tool will help you report PAYE information online and in real-time.
2. Payments and deductions
This is one of the best payroll software for small businesses in the UK because it calculates employees’ deductions and payments. Examples deductions that this software records on payslips include:
- Student loans
- Statutory payments (maternity/sick leave)
- NIC
- Pension contributions
What’s more?
This solution allows you to make corrections and updates the next payroll.
3. Workplace pensions
With Sage Payroll, you can set up pension schemes (People’s Pensions, NEST or NOW). Alternatively, you can set up a provider that you prefer.
4. Payslips and P60s printing
This software comes with an inbuilt payroll printer. Therefore, you can print payslips and P60s without the need for special stationery. You save time and you also save money!
5. Error fixing
Most systems require that you reprocess pay runs after editing errors on employee pay.
Not with Sage Payroll.
This software has an inbuilt feature that helps you fix any errors that may arise easily and quickly. The solution then updates the corrections for the next pay runs. The changes also reflect on your staff’s payslips, too. The software also shows the amended items.
6. Auto updates
With this software, you’ll always be in tune with the latest payroll regulations since these update automatically.
Pricing
Sage Payroll has a 30-day trial period.
That’s not all:
You get to use the software free of charge for three months after subscription!
Here are the rates of this payroll software for UK small business:
- Payroll 5 – £7/month plus VAT (up to 5 employees)
- Payroll 10 – £12/month plus VAT (up to 10 employees)
- Payroll 15 – £17/month plus VAT (up to 15 employees)
- Payroll 25 – £27/month plus VAT (up to 25 employees)
If you need to pay over 25 people, you can opt for Sage 50cloud Payroll.
The best thing about this plan is that it allows you to run payroll for an unlimited number of staff at only £81.50/month plus VAT.
Sage also gives you the option to link it to accounting software for up to 25 employees, for £51+VAT/month (up to 25 staff)
*Every plan gets to enjoy the same exact features. The number of employees brings about the cost difference.
* Note that you have to install Sage 50cloud Payroll on your desktop.
*Sage Business Cloud Payroll purely runs on cloud so no download necessary.
Verdict
This simple payroll software for UK businesses eliminates manual processes.
What’s more?
You don’t have to install anything to use Sage Payroll. All you need is an internet-connected device.
Some of Sage Payroll’s features include but are not limited to payslip printing, calculation and of payments and deductions, auto-updates, payslips and P60s, workplace pensions, RTI ready, and HMRC compliant.
But:
This software’s speed is slow when entering transactions like banking because it has a 3-step process. However, this is to minimize errors.
Also, it takes about seven days to clear a prenote. Note that the delays happen only during the authorization of new banking details. The process moves along much faster after that.
Newer version release comes with bugs. The good news is that the company quickly resolves the issues.
8. KashFlow Payroll
KashFlow payroll is a simple cloud-based platform that has everything you need to manage your payments efficiently. A simple click will have you managing everything from employee pensions to payslips. Some of this software’s features include reports, automatic enrolment, employee self-service, RTIs, holiday pay, and so much more.
• Robust reporting
• Customisable software
• Payment alerts
Duane Jackson, a web developer, founded KashFlow in 2004. Jackson’s business outgrew Excel, and he created a simple system to manage his accounts.
He soon started getting numerous requests for similar small business payroll software which gave birth to KashFlow. The company has multiple awards, as you can see here.
Features
KashFlow’s features are as follows:
1. RTIs
The software automatically updates any changes you make on your payroll. It also submits your P11D forms and P60s in real-time.
2. HMRC compliant
KashFlow is HMRC compliant. That means that at no point will you get penalties and fines from the government for failing to submit VAT returns.
3. Payslips finalising
This solution runs checks for any discrepancies on your payslips before you approve them for pay date. It then presents a list of items that need your attention.
4. Employee self-service
Staff can view their payslips from anywhere without any hassle, which makes this one of the top payroll software in the UK. Therefore, you don’t have to send each employee their payslip, which can be redundant.
5. Holiday pay
This platform comes with an easy-to-use calendar to help you keep track of your employees’ holiday entitlement.
6. Reports
KashFlow is payroll software in the UK that is always updating its reports feature based on user requests and feedback.
There’s also one mind-blowing detail.
This platform has 45+ report types. Yes, you read that right – 45+.
They fall under three broad categories, namely:
- Expenditure-related reports
- General reports
- Income-relates reports
7. Auto-enrolment
This software has an auto-enrolment feature to ensure that all your employees comply with the UK pension laws.
Pricing
KashFlow’s paid packages are as follows:
- Core – £6.75/month plus VAT for up to 5 employees (£1.13 for each additional employee)
- Core plus Accounting – £22.50/month + VAT for up to 5 employees (£1.13 for each additional employee), comes with accounting options, which is basically the only difference.
*Automatic enrolment add-on is at £1/employee, £13.50/5 employees for both plans.
Verdict
KashFlow is one of the more affordable solutions, especially when you take the features into account. They include robust reports, RTIs, employee self-service, holiday pay, HMRC compliance, automated payroll, and many others.
Note that this solution’s automatic enrolment doesn’t come with the monthly charges. You have to pay for it as an add-on. But bearing in mind that the platform doesn’t have upfront fees or yearly renewal fees, paying for this feature is fair.
9. Xero Payroll
Xero payroll for the UK is a flexible cloud-based solution that is ideal for you if you’re looking for a scalable option. This platform provides a single place for you to manage your payroll, finances, and pension. Some of Xero’s features include; automatic account updates, HMRC submissions, auto pension enrolment, leave management and working hours tracking.
• Real-time bank feeds
• Account advisors
• Constant upgrades
Xero went live as basic software in 2007. Since then, the company has grown in leaps and bounds and often has frequent software updates with more superior features. To date, this software’s client base amounts to 2,000,000+.
Features
Here are Xero’s features:
1. HMRC submissions
Xero is one of the best payroll software for UK enterprises because it updates your pension and payroll accounts automatically. In addition, it forwards your data to HMRC.
2. Hours tracking
Xero payroll has built-in timesheets to track how many hours your staff has worked. It then seamlessly automates calculations of payments due, making it easier for you to run payroll.
3. Flexible calendar
With this software, you can choose payment periods suitable for your organization. That means you can pay your employees on a weekly, bi-weekly, or monthly basis.
4. Multiple pay rates
You might have staff that works different roles in your company. This software allows you to pay them at different rates for each pay period.
5. Encrypted payslips
Xero is one of the best UK payroll software because it comes with iOS and Android apps. Therefore, staff can access their payslips from anywhere. For security measures, the system encrypts the digital payslips to ensure they reach the intended recipients safely.
6. Expense refunds
Reimbursements can be time-consuming if you don’t have the right solution. Refund staff for expenses spent on the job as you run payroll with this solution.
Pricing
Xero Payroll comes with a 30-day trial period for you to experiment with its features.
It gets better.
This payroll software for the UK is free to use for three months!
Note: Xero payroll doesn’t come as a stand-alone package. You have to subscribe to one of the software’s all-inclusive accounts and then add the feature.
Here are the tool’s packages and their rates:
- Starter – £10/month plus £5/month for five employees and £1 for each additional staff
- Standard – £24/month plus £5/month for five employees and £1 for each additional staff
- Premium – £30/month plus £5/month for five employees and £1 for each additional staff
Verdict
Xero Payroll is a scalable software that will grow with your business. Its features include HMRC submissions, expenses refund, flexible calendar, built-in timesheets, encrypted payslips and multiple pay rates.
Although this platform is easy to set up, it has a steep learning curve. The good news is that you’ll get an advisor to guide you initially. After a while, it becomes easier to use.
10. HMRC Basic PAYE Tools
HMRC Basic PAYE Tools is a free payroll software for UK organizations from HMRC. This solution’s features include National Insurance number verification, full payment summary, employer payment summary, amongst others.
• Free tool
• HMRC compliant
• Calculates apprenticeship levy
Her Majesty Revenue and Customs is a non-ministerial organization that the UK Government formed in 2005. The purpose – tax collection, the issuance of national insurance numbers, the regulation of minimum wage, and some state support issuance.
Features
Here are HMRC Basic PAYE Tools features:
1. Full Payment Summary (FPS)
You can use this HMRC payroll software to let the organization know the deductions like National Insurance contribution or tax from your employees’ pay. Note that you must send every staff member’s FPS for each pay run.
2. National Insurance Number Verification
If you have new staff and would like to ascertain their insurance numbers, this software can help. In addition, you can use it to find out what a fresh employee’s insurance number is, in case they’ve forgotten.
3. Employee Payment Summary (EPS)
This feature comes in handy:
- If you want a refund for statutory payment
- If you haven’t run payroll for a specific period
- For calculating apprenticeship levy.
- If you’re a limited company that has gone deductions from the Construction Industry Scheme
4. Earlier Year Update (EYU)
If you have employee details that you’d like to change, you can use this tool to do so. It allows you to change deductions and pay information for a tax year that’s over.
Pricing
This is one of the few free payroll software in the UK. In other words, there are no charges for using this platform. You get all the good stuff without paying.
Verdict
HMRC Basic Tools is a simple solution that can help you run your payroll. Some of this software’s features include National Insurance number verification, full payment summary, earlier year update, an employer payment summary.
Note that this software doesn’t perform automatic enrolment for you. Therefore, you have to do the process manually, which means that your payroll could be prone to human error.
This software isn’t ideal for you if you have more than ten employees. It’s also unsuitable for agents/bookkeepers with more than three customers, and each must have less than nine employees.
In addition, if you’re looking for software with a payslip function, Basic PAYE Tools is not the software for you. Luckily, we have plenty of other options on our list with that feature.
Nevertheless, it’s still a useful tool for performing basic payroll functions. Anf it’s free, which definitely makes it a great solution for people on a tight budget.
11. IRIS Payroll
IRIS payroll for business is perfect for you if you want to reduce your administration time. This software automates your payments so that you can always pay your workforce on your time. Some IRIS features include payslip printing, HMRC compliant, job retention scheme, absence holiday diary, and auto-enrolment.
• Plenty of options
• Excellent telephone support
• Constant updates
This company has over 40 years of payroll management experience. Over 330,000 businesses in the United Kingdom rely on it to manage their payrolls.
Features
Here are IRIS’s features:
1. Job Retention Scheme (JRS)
This software fully supports furlough teams and is excellent with handling JRS claims. It also ensures that your payroll is fully compliant whether it’s on holiday pay calculations or allowances.
2. Flexible benefits
IRIS is one of the best online payroll software in the UK when it comes to supporting business initiatives on benefits like childcare vouchers or salary sacrifice.
3. Flexible payroll options
This software has 22 payroll products, which means you have quite a lot to choose from. Here are some of the solutions:
- IRIS Managed payroll – for companies that want to outsource payroll
- IRIS Payroll Basics – free software for less than ten employees
- IRIS Payroll Business- for up to 100 members of staff
- KashFlow payroll – web-based solution for furlough staff
- IRIS Payroll Professional – formerly Star Payroll for both mid-sized organisations and bureaus
- IRIS Payrite -ideal for SME payrolls, large retail, businesses and public sector
- IRIS Earnie IQ – best solution to handle evolving businesses
- IRIS GP Accounts – the best solution for customisation to meet your organisation’s unique needs
- IRIS GP Payroll – the best solution for practice managers
4. HMRC compliant
This solution is HMRC approved and RTI compliant. Also, it doesn’t have a 30-day limit.
5. Auto-enrolment
IRIS automatically enrols pensions to comply with government regulations.
6. Pay slip printing
IRIS calculates NI, PAYE, and all other statutory payments automatically. The software allows your staff to print out payslips through either tablet, smartphone, Mac, or PC.
7. Absence holiday diary
This feature monitors the time that your employees are off work. This is an important feature depending on whether your staff have paid or unpaid holiday/leave.
Pricing
IRIS is one of the best free payroll software in the UK because of its IRIS Payroll Basic plan. Note that your business must have less than ten employees to enjoy this tool.
The solution also has paid packages, some of which display pricing. For some plans, you have to contact the company for quotes.
Here are some of the company’s packages:
- IRIS Payroll Basics – £0 (10 employees)
- IRIS Payroll Business – £230 upfront fee +£96/year (up to 100 employees)
- IRIS Payroll Professional – Contact IRIS ( 100 to 2000 employees)
- IRIS Earnie IQ – Contact IRIS ( Over 250 employees)
- IRIS Managed Payroll – Contact IRIS ( For outsourcing)
- IRIS Bureau Payment – £116 upfront fee +£947/year (for bureaus)
Verdict
IRIS payroll is one of those solutions that have something for everyone. The software is so broad that it can be the best payroll software in the UK for large companies or serve small companies with less than ten staff.
Some of its features include payslip printing, HMRC compliant, job retention scheme, absence holiday diary and auto-enrolment.
Although some IRIS packages can be costly for small enterprises, it has a lot to offer larger organizations. Luckily, there are packages within the same solution that are suitable for SMEs.
12. FreeAgent
FreeAgent is one of the best accounting and payroll software in the UK. With this software, there is no need for your businesses to use multiple systems, i.e. accounting and payroll. Some of this platform’s features include payslip and P60 generation, HMRC compliance, furlough calculator, RTI support, employment allowance and many more.
• Easy to use
• Constant updates
• Excellent customer support
Ed Molyneux, Roan Laver, and Olly Headey founded FreeAgent in 2007. Since its inception, the company has been making headway with constant improvements on its features, to serve its clients better.
The bank of Scotland currently owns the software. To date, this solution has 200+ staff working to ensure that FreeAgent remains to be one of the most popular payroll software in the UK.
Features
Here are FreeAgent’s features:
1. HMRC compliant and RTI support
This software automatically forwards the necessary data to HMRC as you run your payroll every month. Therefore, with FreeAgent, staying compliant will never be an issue.
2. Time tracking
This tool has an inbuilt stopwatch and timesheets to track time for you automatically. That means you don’t have to waste time entering the hours worked into the system.
3. Pay slip and P60 generation
FreeAgent is one of the top 10 payroll software in the UK because it generates payslips automatically. The documents are available online for you to edit and print. At the end of the year, you can print P60s for your employees.
4. Bank payments
Connecting some solutions to bank accounts can be hectic. This solution links to bank accounts directly.
5. Furlough claims calculator
FreeAgent has a calculator to help you calculate claims for your furlough staff. It has essential features, such as:
- Gross monthly pay
- Date of claim
- No. of furlough hours
This feature also gives you an option to include pension and National Insurance Contributions.
Pricing
This is yet another one of the best free UK payroll software. However, to get access to the free payroll, you have to subscribe to one of the paid packages that also incorporate accounting.
Here are FreeAgent’s premium plans.
- Limited company – £14.90/month for the first six months, then £29/month + VAT
- Partnership – £12/month for the first six months, then £24/month + VAT
- Sole trader – £9.50/month for the first six months, then £19/month + VAT
NB: You can use FreeAgent for free if you have a current business account at the Royal Bank of Scotland or NatWest.
*FreeAgent is free for the first 30 days.
Verdict
FreeAgent is an excellent solution to help you manage accounting and payroll. Some of its features include HMRC compliance, RTI support, stopwatch, timesheets, bank payments, and furlough claims calculator.
Note that this software’s reports are limited, but bearing in mind that it’s best for small businesses, they work just fine.
13. Moneysoft
Moneysoft is one of the best payroll software in the UK if you’re looking for a platform that offers the best value for money. Some of this software’s features include HMRC and RTI compliance, automatic enrolment, holiday pay, flexible payslips, and online filing.
• Flexible payslips
• User-friendly
• Multiple employers
Moneysoft has been in the market since 2000. This solution is suitable for agents, CIS contractors, employers.
Features
The following are MoneySoft’s features.
1. HMRC recognized
This software will always ensure that you stay on the right side of the law by submitting relevant payroll information to HMRC. It’s also RTI compliant helping you make all your submissions on time.
2. Tax and NIC
This solution comes with inbuilt NIC and tax rates. It then populates the data automatically in your payroll, saving you time.
3. Flexible payslips
MoneySoft allows you to add company logos or notes on your payslips. This online payslip generator for UK businesses also will enable you to print them on plain paper or pre-printed stationary for variety.
4. Online filing
This solution files the following docs online for you for easy access:
- CIS 300 monthly returns
- P46 (Car) notification
- HMRC and RTI submissions
- P11D expenses & benefits
- CIS subcontractor verification
The platform validates data before submitting and alerts you if anything’s missing.
5. Automatic enrolments
With this software, enrolling for workplace pensions becomes much easier because it does that automatically. It conducts employee assessments on your behalf and then calculates the qualifying earnings.
6. Holidays
MoneySoft comes with a holiday fund feature. This solution also takes note of all UK work and national holidays and has an annual leave feature that’s user-defined.
Pricing
Moneysoft has a 30-day trial period. Here are the software premium plans:
- Payroll Manager 20 – £72/year for one employer/contactor and up to 20 subcontractors/employees
- Payroll Manager 100 – £144/year for unlimited employers/contactors and up to 100 subcontractors/employees
- Payroll Manager 250 – £216/year for unlimited employers/contactors and up to 250 subcontractors/employees
*All plans come with a 12-month license.
Verdict
Moneysoft is one of the top 5 payroll software in the UK because it offers value for money. HMRC approved RTI compliant, automatic enrolment, holiday pay, flexible payslips and online filing.
Unfortunately, this software doesn’t have a Mac version. The good thing is that we have plenty of other options that you can use on the OS.
14. BrightPay
BrightPay is a simple UK payroll software that’s easy to use. Despite its simplicity, it has comprehensive payroll functionality. Some of this platform’s features include automatic pension enrolment, payslips, annual leave management, HMRC payments, flexible report builder, and employee calendar amongst many others.
• No phone apps
• Buggy auto-enrolment feature
• Different mac and windows versions
BrightPay has 25 years of industry experience. This solution started as a small company with two staff members, and that figure has grown to 45 employees to date. BrightPay currently has over 250,000 clients scattered across Ireland and the UK.
Features
The following are BrightPay’s features:
1. Statutory pay
This software helps in determining eligibility and calculations of statutory payments such as:
- Maternity leave
- Parenting leave
- Sick leave
2. Auto-enrolment
This solution automatically enrolls your staff’s pension through several schemes including but not limited to:
- Standard Life
- Aviva
- Creative Auto-enrolment
- Scottish Widows
- Royal London
3. Annual leave
BrightPay aligns the tax year with the annual leave days to do correct calculations for payday. This feature also displays the balance of annual leave days on staff payslips.
4. Employee Calendar
This payroll software for the UK market has a responsive employee calendar that helps you set working and non-working days. You can also set both paid and unpaid leave days.
5. RTIs
BrightPay enjoys full recognition by the HMRC. It also submits relevant data in real-time, saving you from penalties.
Even better:
This software allows you to send multiple RTIs at once.
6. Payslips
With BrightPay, you can choose to print payslips using Sage/IRIS stationary or a blank paper. One-click is all it takes to email payslips to your staff. It also allows you to export the documents as PDF files.
Pricing
This solution has a 60-day trial period. Here are its paid packages and their rates:
Standard for individual employers (One employer)
- Up to 3 employees – £ 49
- Up to 10 employees – £ 99
- Up to 25 employees – £ 149
- Unlimited employees – £ 199
Bureau for payroll service providers (Unlimited employees)
- Up to 10 employers (small bureaus) – £249
- Up to 25 employers (mid-sized bureaus) – £399
- Up to 10 employers (large bureaus) – £499
It is one of the best bureau payroll software in the UK.
Verdict
BrightPay is a feature-rich solution, with transparent pricing. It has plenty of useful payroll features, and some of them include automatic enrolment, RTIs, HMRC compliance, payslips, employee calendar, and so much more.
Note that this software is only limited to Windows and Mac operating systems. However, we have plenty of other solutions on our list that work well with other devices.
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What Is Payroll Software?
Payroll in the UK software is a system or program that streamlines various processes to make staff payments. It automates some functions like payment calculation, enrolment to pension schemes, RTI submissions, or making direct deposits.
Benefits of Payroll Software
There are advantages to implementing payroll software in your organization. Some of the benefits include:
1. Saving time with quick calculations
Manual calculations of payroll are time-consuming because you have to manually track time, work out tax deductions, overtime, pension, and so many other things.
These systems automate most tasks, saving your time or that of your managers, which you can otherwise channel to other areas of your business.
2. Helps you stay in compliance with UK tax and payroll laws
Not submitting VAT or PAYE data to HMRC can lead to hefty penalties. Most online payroll software in the UK file data directly to the organization, saving you the headache.
The platforms also stay up to date with the latest tax regulations which change frequently. You don’t have to lift a finger if you have the right payroll software to help you stay on top of your game.
3. Helps with accuracy
Since the software calculates payments automatically, there are no chances of human error. Bear in mind that mistakes in your payroll data can lead to fines and taxes from the government.
4. Beneficial to employees
Think about it:
Your payroll software providers in the UK can calculate payroll faster while eliminating human errors.
The end result is that your staff will always receive their payments on time.
What To Consider When Choosing Payroll Software
This simple guide will help you select the best payroll solution to suit your business’s needs.
5. Price
Pricing is a vital factor to consider with any purchase. The solution that you pick should depend on your budget.
Some solutions like HMRC Basic PAYE Tools are free of charge but limited in features. Others like KashFlow or Sage Business Cloud Payroll are affordable. Others like IRIS might be a little pricier but have more features.
6. Discounts
Discounts can help cushion your operating costs, especially if you’re just starting out. Some platforms need 100% of the payment upfront, while others will charge a percentage of the total costs.
Let me elaborate on that:
Some payroll solutions like Intuit give you a 50% discount for the first three months. Others like Sage Business Cloud Payroll, offer 100% discount for three months once you subscribe to a paid plan.
7. Functionalities
The tasks that you intend your payroll tool to perform should be one of the most important things to guide you on choosing the right one.
For instance, some software like HMRC Basic PAYE tools is limited in functionalities. This software doesn’t have features like automatic pension enrolment or payslips. Others like Sage Payroll, Xero, or KashFlow have this and all the features that you need.
8. HMRC compliance
It’s paramount that businesses submit their tax information to HMRC. If you fail to do so, you could end up facing penalties from the government. Go for software with inbuilt HMRC payroll tools that will carry out the task automatically, rather than those that will require you to do it manually.
9. Trial period
It’s best to pick solutions that give you a free trial period to enable you to experiment with their features. Note that some software like Xero or BrightPay has more extended trial periods; 30 and 60 days, respectively. Others like KashFlow give you 14 days.
10. Number of staff
Go for solutions that allow you to pay the number of staff that you have.
Some platforms have a cap on the number of staff that you can pay through them, while others don’t.
Therefore:
If you have 50 employees, there’s no point subscribing to a payroll tool that can only allow you to pay three.
For example, HMRC Basic PAYE Tools has staff limitations (maximum of nine). Others like SAGE can handle up to 25 staff, while some like IRIS can handle upwards of 10000 employees.
11. Business type
The industry that you’re in is yet another determinant of what to pick.
Some payroll software like IRIS are flexible and can handle payroll for organizations in any industry. Although solutions like Intuit are also versatile industry-wise, each of their plans has CIS, making it suitable for construction companies.
Wrap Up
Payroll software for any UK business offers a lot of advantages. With the platforms, you stay compliant, save on time and money, eliminate human errors, and pay your employees on time.
Before you buy any payroll solution, it’s paramount that you pick one that’s best for your company. Our smart guide will help you choose one that’s suitable for your business.
FAQs
What is the easiest payroll software to use?
The easiest software to use is KashFlow Payroll.
What is the best free payroll system for small business UK?
The best small business payroll software in the UK that’s free is IRIS Payroll Basics and HMRC Basic PAYE Tools. IRIS Payroll Basics has more features such as automatic pension enrolment and payslip function compared to Basic Tools.
What is the most used accounting software in the UK?
The most used accounting software in the UK is Xero.
Which payroll software is best?
The best payroll platform is the one that suits your business needs. Our top nine solutions are as follows:
1. Sage Business Cloud Payroll
2. KashFlow Payroll
3. Intuit Payroll
4. Xero Payroll
5. HMRC Basic PAYE Tools
6. IRIS Payroll
7. FreeAgent
8. MoneySoft
9. BrightPayWhat is the best free payroll software?
The best free payroll software is IRIS Payroll Basics because it has features like automatic enrolment and payslips.
How do I do my own payroll UK?
The following are steps to doing your payroll.
1. Register with HMRC
2. Choose suitable payroll software for your UK business
3. Set the relevant tasks to automatic processes
4. Give HMRC details regarding your employees
5. Foresee the records before payday
6. Make the necessary payments to HMRC and National Insurance payments that you owe.
With a degree in English Language and Literature and immense love for tech, Dejan's unique blend of technical acumen and literary prowess. His commitment to delivering quality content and his ability to immerse readers in the captivating worlds of gaming made him a valuable contributor to TechJury team during Feb 2021 to Oct 2022. Through his contributions, Dejan continues to share his knowledge and passion, bridging the gap between technology and the immersive realms of fantasy and sci-fi by writing articles like this :https://techjury.net/blog/can-you-play-ds-games-on-switch/ https://techjury.net/reviews/phonerescue-review/ https://techjury.net/blog/how-to-recover-permanently-deleted-photos-on-iphone/ https://techjury.net/blog/can-you-play-ds-games-on-switch/