Best Payroll Software in the UK 2026

Running a business means wearing many hats, but “payroll expert” probably wasn’t the one you dreamed of. Yet, paying your team correctly and on time is non-negotiable, and the admin that comes with it is another story. Juggling spreadsheets, calculating taxes and keeping up with HMRC regulations can drain your time and energy. All of which are resources better spent on growing your business. For many small and medium-sized business owners, payroll is a recurring headache.

Finding a reliable payroll solution shouldn’t add to the stress. The market is crowded and it can be tough to know which software truly gets the challenges UK businesses face. In this article, we will compare some of the top payroll software platforms, breaking down their pros and cons to help you make a smart choice.

What is Payroll Software?

Payroll software is a tool that automates the entire process of paying your employees. It’s designed for business owners and managers who want to move beyond manual calculations and endless paperwork. It takes a complex, high-stakes task and makes it simple, fast and accurate.

The core function of payroll software is to solve the major pain points of managing pay. This includes calculating wages, deducting the correct tax and National Insurance contributions, handling pensions and generating payslips. 

The best payroll software tools are built to handle the specifics of UK regulations, including auto-enrolment and RTI submissions to HMRC. How payroll software helps is by transforming a time-consuming, error-prone process into a streamlined, automated function, giving you confidence and control.

Benefits of using Payroll Software

Switching to a dedicated payroll software isn’t just a minor upgrade; it’s a fundamental shift in how you manage a critical business function. The benefits are immediate and impactful.

• Save huge amounts of time: Automation handles the heavy lifting. The software calculates pay, tax and deductions in minutes, not hours. This frees you up to focus on your business and your team.
• Improve accuracy and compliance: Manual payroll is a recipe for mistakes. Software minimises human error, helping you avoid costly corrections and potential fines. It also stays updated with the latest HMRC rules, helping you manage compliance with confidence.
• Empower your employees: Give your team on-demand access to their payslips, P60s and payroll history through a secure online portal. This transparency builds trust and reduces the number of queries you have to field.
• Integrate for total efficiency: When your payroll is part of an all-in-one HR platform, data flows seamlessly. Time and attendance, leave requests and employee details are all connected, eliminating double data entry for good.

Best Payroll Software UK platforms compared

To find the best UK payroll software, we evaluated leading platforms on the factors that matter most to SMEs: ease of use, accuracy, automation features and customer support. Here’s how they compare.

Feature/Provider	Employment Hero	Xero Payroll	Sage Payroll	BrightPay	The Payroll Site	QuickBooks Payroll	ADP	Deel	IRIS Staffology
Free trial	✓	✓	✓	✓	✓	✓	✓	✓	✘
Core HR Software	✓	✘	✘	✘	✘	✘	✓	✓	✓
Core Payroll Software	✓	✓	✓	✓	✓	✓	✓	✓	✓
Applicant Tracking	✓	✘	✘	✘	✘	✘	✓	✘	✓
Integrated HR & Payroll	✓	✘	✘	✘	✘	✘	✓	✓	✓
Ease of Use	✓	✓	✓	✓	✓	✓	✓	✓	✘
Pricing Transparency	✓	✓	✓	✓	✓	✓	✘	✓	✘
All-in-one Platform	✓	✘	✘	✘	✘	✘	✓	✓	✓
Integration Options	✓	✓	✓	✓	✓	✓	✓	✓	✓

Employment Hero

Employment Hero delivers a fully integrated HR and payroll platform, making employment simpler and more rewarding for ambitious UK SMEs. By bringing HR and payroll together, the platform cuts down on admin, removes data silos and helps you focus on building your team, not fighting paperwork. Plus, Employment Hero offers free payroll software, making it even easier to manage your workforce without extra costs.

Employment Hero stands out with responsive live chat, in-app help and a UK-based support team that understands local payroll needs. Premium customers can access a dedicated account manager for extra guidance. Support is fast, friendly and human, so you’re not left waiting in a ticket queue or stuck searching for answers.

Pros of Employment Hero for Payroll

• Seamless integration: Payroll is a core feature, with employee details, leave and timesheets all syncing automatically to reduce manual work.
• Free payroll software: Simplify payroll management without additional costs.
• Powerful automation: Automates calculations, RTI submissions to HMRC and pension reporting, so you can pay your team in a few clicks.
• Intuitive for everyone: Designed to be easy for both admins and employees. Staff can access payslips and request leave anytime through the app.
• Scales with your business: Built for growth, whether you have a handful of staff or hundreds.

Cons of Employment Hero for Payroll

• All-in-one platform: If you only want a basic, standalone payroll tool and have no plans to grow, the extra features may feel like more than you need.

Xero Payroll

Xero is a known name in cloud accounting, and its payroll feature is designed for businesses already using their finance platform. Simplicity is at the heart of the offer, making it a popular bolt-on for existing Xero users.

• Description: Xero Payroll lets businesses manage pay runs, submit HMRC information, and handle auto-enrolment pensions within its accounting software.
• Pros: Seamless integration with Xero accounting makes it convenient if you’re already in their ecosystem.
• Cons: Functionality is limited, lacking features like advanced HR, detailed reporting, or deep customisation. Support can be slow, especially for more complex queries.

Sage Payroll

Sage is an established software provider in the UK, offering payroll solutions for businesses of all sizes.

• Description: Sage Payroll is built with compliance in mind, making it a solid choice for meeting HMRC requirements. It’s a familiar name for accountants and widely adopted across the UK.
• Pros: Reliable and trusted, Sage handles core payroll tasks well and keeps your compliance on track.
• Cons: The interface feels dated and less intuitive than newer platforms. Separating HR and payroll products can result in a disjointed user experience and higher costs.

BrightPay

BrightPay is a respected payroll software available as both a desktop and cloud solution, known for its comprehensive payroll features and focus on UK requirements.

• Description: BrightPay handles both simple and complex payroll tasks accurately and is considered good value for its range of features.
• Pros: Thorough and capable, BrightPay covers nearly every payroll scenario you might face. Support is generally well regarded.
• Cons: The interface feels less modern and intuitive than some competitors. HR features are available as add-ons and are not fully integrated.

The Payroll Site

Stripping payroll back to its essentials, The Payroll Site offers a no-frills, web-based tool for small UK businesses needing a straightforward way to pay their team.

• Description: A simple, low-cost online payroll solution designed for small UK businesses.
• Pros: Affordable and easy to use for basic payroll tasks.
• Cons: Offers minimal features beyond payroll, lacks HR integration, and has an outdated user interface.

Deel

Deel is a global HR platform built to handle the complexities of hiring, paying and managing an international workforce, targeting companies that operate across borders.

• Description: A comprehensive solution for global payroll, contractor management and employer of record (EOR) services.
• Pros: Good for managing international teams, contractors and handling cross-border compliance.
• Cons: Can be more complex and expensive than necessary for businesses that only operate locally.

ADP

ADP is long-standing in the payroll and HR industry, offering a wide array of services for businesses ranging from small startups to large multinational corporations.

• Description: A robust, scalable payroll and HR services provider known for its comprehensive feature set and compliance support.
• Pros: Scalable with functionality in payroll and tax compliance.
• Cons: The platform can feel overwhelming for small businesses, requiring extensive IT setup and resources. Pricing is often less transparent than more modern solutions.

QuickBooks Payroll

As another major player in the accounting world, QuickBooks extends its financial management suite with a payroll add-on for users of its ecosystem.

• Description: Part of the QuickBooks accounting ecosystem, this tool provides payroll that integrates with your financial management.
• Pros: Integrates well with QuickBooks Online and features a functional mobile app.
• Cons: Payroll features are basic, the platform can be costly for its functionality and support experiences are inconsistent.

IRIS Staffology

IRIS Staffology brings powerful automation to the forefront, offering a cloud-native platform that aims to simplify complex payroll and HR for UK businesses.

• Description: A cloud-based payroll and HR platform focused on delivering automation to streamline processes.
• Pros: Strong automation capabilities and reliable payroll features.
• Cons: Setup can be complicated, the interface lacks polish compared to newer solutions, and pricing is higher than several competitors.

How Employment Hero supports businesses with payroll

We built Employment Hero because we believe business owners deserve better tools. You shouldn’t have to be a payroll expert to pay your team correctly. Our platform is your sidekick, automating the complexities so you can run payroll with confidence and get back to your day.

With Employment Hero, RTI submissions to HMRC are automated. Pension contributions are calculated and reported automatically. Payslips are generated and distributed to employees in their self-service portal. And because it’s unified with HR, you can be sure the data is always accurate. It’s payroll that just works, giving you complete peace of mind.

How to choose the right Payroll Software

Choosing the right payroll software is about finding the best fit for your business now and in the future. Don’t get distracted by a long list of features you’ll never touch. Focus on what will make a real difference.

First, consider ease of use. The system should be intuitive, allowing you to run payroll quickly without needing a manual. Look at the cost, but think about value. A cheap system that creates hours of extra work is a false economy. Ensure it has the key features to automate your biggest payroll headaches. 

Finally, think about integration. A standalone payroll system creates more work. A platform that combines HR and payroll saves time and reduces errors.

Final thoughts

Getting payroll right is fundamental to your business’s success and your team’s morale. The right software transforms this critical function from a source of stress into a streamlined, automated process. It gives you back your most valuable asset: time.

The right solution should help with compliance and integrate with your wider HR processes. It should help your business with efficiency, accuracy and a better employee experience.

Employment Hero is designed to be that solution. We’re on a mission to make employment easier and more valuable for everyone. Ready to see how?

Learn more about our all-in-one HR and payroll platform today.