The best UK payroll software

All employers are required to submit PAYE information online each time they make a payroll payment under HMRC's Real-Time Information (RTI). RTI-compliant payroll software makes it much easier to manage PAYE

**Note: prices correct on 07/02/25 (limited-time offers may be available)**

You must be able to report PAYE information to HM Revenue & Customs (HMRC) online, in 'real time' – on or before each payment is made. So you should choose payroll software that is recognised by HMRC. But that still leaves a huge number of different options to choose from.

There's a wealth of fantastic payroll software for small businesses designed to make the promised reduction in paperwork a reality. The right payroll software makes it much easier to calculate tax and National Insurance deductions, file reports with HMRC, make payments and keep records. What's more, what was once enterprise-only software is now available to those with smaller budgets and even fewer HR resources. So, which option is right for you?

Here's our quick guide to what to look for, and our review of some of the best packages.

Find out more about these popular payroll packages:

• Sage Business Cloud
• Rippling
• Oyster
• Payroo
• Cintra
• Iris
• MyPAYE
• Deel
• Moorepay
• Papaya

1. Sage Business Cloud Payroll

Sage has long been a market leader in business software, and their payroll software is admirably approachable for micro and small businesses.

Key payroll features

• Automatic payroll tracking in Sage Accounting
• Automatically handle employee pension enrolment
• Easy to share data with your accountant

Pricing

• From £10 per month for Payroll Essentials up to £30 for Payroll Premium (up to 5 employees)
• Additional employees can be added from £2 per month (depending on the package taken)

2. Rippling payroll software

Everything larger businesses need to manage their workforce.

Key payroll features

• HMRC-compliant and 100% error-free guarantee
• Mobile app
• Powerful syncing of time, expenses and benefits for full payroll automation
• Flexible automation and reporting
• Wide range of accounting, banking, expense management and other integrations
• Sends handy reminders when onboarding new employees

Pricing

• Price on application (custom quotes according to requirements)
• From £7 per user per month.

3. Oyster

Run multi-country payroll with ease in more than 28 countries.

Key payroll features

• Offers a range of features for managing payroll and benefits for a global workforce
• User-friendly
• Subscriptions for contractors and employees
• Thousands of third-party integrations available
• Oyster Academy offers excellent educational resources for your team

Pricing

• Free for 30-days
• Contractors: $29 per contractor per month
• Global employees: $25 per employee per month
• Employer of Record service: $599 per employee per month

4. Payroo payroll and pensions

Designed to combine payroll and pensions, with the flexibility to work with multiple pension providers.

Key payroll features

• Combined cloud payroll and pension system
• Simple and intuitive
• Simple RTI-returns and auto-enrolment compliance
• Optional CIS functionality

Pricing

• From £5 per month (1-2 employees), £10 (3-5 employees), £15 (6-9 employees) upwards

5. Cintra

Award-winning payroll software for businesses looking to run payroll in house.

Key features

• Cloud-based payroll software
• Automate payroll and reduce repetitive tasks with auto calculations
• HMRC and GDPR compliant
• Streamline payroll and auto-enrolment
• Manage holiday, absence, sickness and timesheets
• Offers combined payroll and HR services for small businesses

Pricing

• Pricing on application

6. Staffology by Iris

A full range of accounting and human resources software with the potential to grow with your business.

Key payroll features

• Includes handy HR tools including rota planning, timesheets, expenses and performance management

Pricing

• From £35 per month (up to 20 payslips) with additional payslips costing extra; detailed package pricing according to needs
• Only pay for the playslips you need
• Call to discuss demo, trial and pricing

7. MyPAYE payroll software

Easy but powerful pay-as-you-go solution, with the option to take advantage of integrations with leading pension providers.

Key payroll features

• Accounting integrations include Xero, QuickBooks and KashFlow
• Additional options include pensions and auto-enrolment, timesheet and expenses management, CIS

Pricing

• 30-day free trial
• From £1.25 per month per employee

8. Deel

Powerful global payroll, HR and compliance platform, ideal for businesses using remote contractors in multiple countries.

Key payroll features

• Fully managed service covering more than 100 countries
• Strong support including in-house specialist payroll and compliance advisers
• Integrations with leading HR and accounting software packages

Pricing

• Deel global payroll from $29 per month
• Deel contractor from $49 per month for international contractor management and payroll; custom quotes for full global payroll

9. Moorepay

A 100% cloud-based payroll system more suited to businesses with more than 50 employees.

Key payroll features

• 100% cloud-based
• UK-based customer support and data storage
• Excellent reputation for ease of use, precision and timely payroll

Pricing

• Pricing on application

10. Papaya payroll 

Global payments and payroll services across more than 160 countries, aimed at larger companies.

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Key payroll features

• Sophisticated instant payments functionality in multiple currencies and countries
• Dedicated customer service manager and in-house experts
• Flexible integrations across other HR and accounting tools

Pricing

• Global payments $2.50 per transaction to more than 160+ countries
• Full-service payroll from $25 per month per employee (101-500 employees)

**Software features, options and pricing can change at any time, so check the latest information before making a decision. Prices quoted do not include VAT.**

The pros and cons of payroll software

There are pros and cons to any business tool, and payroll is no different.

Advantages of payroll software

• Low monthly fee. These days, software as a service (SaaS) is commonplace and a great payroll system can be implemented at a reasonable cost.
• Full control. Performing the payroll yourself puts you in the driver's seat. You'll have full control over employee wages, taxation and reporting.
• Data security. Outsourcing payroll duties or performing them manually can mean the data isn't always secure and that could only add to your list of worries with new GDPR regulations in place. Data security is always a key feature of payroll software.
• Time saved. Business software is designed to be efficient, helping to save you time compared with manual processes.
• Reduction in errors. If there's one area of business in which you want to avoid making errors, it's those all-important payslips! This major advantage is hard to ignore.

Disadvantages of payroll software

• Learning curve. If you're running a small business, you'll have a colossal to-do list and no matter how easy a piece of payroll software is, it's something else to learn.
• Data access. Most modern payroll systems are web-based. If you find yourself without internet connectivity, you can find yourself without access to your payroll function.
• Vendor risk. Putting all of your payroll eggs into the basket of a software vendor is inherently risky - what happens to your data if they go out of business?

How to choose a payroll software provider

Before you start looking around for payroll software, you should answer the following questions to narrow down the most appropriate vendors:

• Business size: how many people to do you pay on a monthly basis?
• Payment structure: do you have one form of pay or is there a mix of hourly pay, salaried staff and commission?
• Pay delivery: do you pay directly via BACS or by cheque?
• Employee location: are you all based in a single location?
• Scalability: how will your business grow over the next three to five years, and what effect will that have on staff numbers and your wage structure?
• Available hardware/connectivity: what IT hardware do you have to hand and is your internet connection fast and reliable?
• Support: are you relatively tech savvy or will you require assistance?

Decide what payroll software features you require

Payroll software comes in many different shapes and sizes with most taking a modular approach to the features they offer. As well as meeting HMRC's requirements for Real Time Information (RTI), you want to be sure that your software can handle employee pension contributions, including your obligations under auto-enrolment. Ideally, it should be easy to integrate the payroll software with your accounting software and to automate payments as far as possible, making the whole process more efficient.

Be clear about any particular functionality you require: for example, if you have employees who submit timesheets, or subcontractors under the Construction Industry Scheme (CIS).

In practical terms, ease of use is often a key requirement. Look for a package that makes it easy to get started, and check what support is available if you have questions or run into any problems. Larger businesses, with more employees and more complicated requirements, may find it worthwhile to invest more time and money in customising the software to meet their exact requirements.

To help narrow your shortlist down, consider the functionality you require. Here are some of the most common:

• RTI integration. Real Time Information is now required by HMRC for payroll. Any system you choose should have this capability.
• Automation. If your payroll rarely changes, the ability to set automated rules and scheduled payments is a must.
• Real-time calculation. Find out exactly what each employee is being paid (and how they're being paid) at any given time.
• Customisable pay rules. If you regularly pay bonuses, commission or overtime, you'll need a system that can be flexible and handle pay differentials.
• BACS integration. BACS is the most common way to pay people these days, so direct integration is vital.
• Tax filing. National Insurance and PAYE tax calculations are part and parcel of payroll and ideally need managing within the same system.
• Auto enrolment integration. UK businesses are now required to provide auto enrolment to a pension scheme and make payroll deductions.

How to implement a payroll system

Historically, smaller businesses shunned payroll tools, preferring to run a manual payroll setup. However, even the smallest of businesses will be better off using a payroll system.

There are three ways to implement a payroll tool:

• Add a payroll module to an existing accounting system.
• Implement specialised, standalone payroll software.
• Utilise HMRC's free, basic PAYE tools.

The method you choose will depend on your existing accounting systems, the number of staff you employ (and therefore how big a task payroll is) and your budget.

In summary...

Payroll should never be seen as a burden. It's an essential task within business, no matter how small the organisation, and the new breed of payroll systems, coupled with admirable government-led initiatives means everyone can benefit from solutions designed to reduce paperwork and ensure pay accuracy.