What is the best payroll software for small businesses in the UK?

For UK small businesses, Sage Payroll and BrightHR are the most popular choices. Sage Payroll is HMRC-compliant from day one with RTI submissions and auto-enrolment. BrightHR offers simple HR and payroll integrations from around £6/month. Employment Hero is ideal if you want payroll, HR, and onboarding in one platform.

Does payroll software handle HMRC submissions automatically?

Yes — all leading UK payroll software handles HMRC RTI (Real Time Information) submissions automatically. This includes Full Payment Submissions (FPS) after each payroll run and Employer Payment Summaries (EPS) for months with no payments. Sage Payroll, Moorepay, and Employment Hero all include automated RTI filing as standard.

How much does payroll software cost in the UK?

UK payroll software typically costs between £4 and £20 per employee per month. Sage Payroll starts from around £8 PEPM (with promotions regularly available). Employment Hero starts from £6 PEPM. Moorepay offers custom pricing typically from £10–£20 PEPM for their managed service. BrightHR's HR + payroll integration starts from £6/month for small teams.

What is auto-enrolment and does payroll software handle it?

Auto-enrolment is a UK legal requirement for employers to automatically enrol eligible workers into a workplace pension scheme. All HMRC-approved payroll software in the UK — including Sage Payroll, Moorepay, and Employment Hero — handles auto-enrolment assessments, contribution calculations, and pension provider submissions automatically.

What is the difference between payroll software and a payroll bureau?

Payroll software lets you run payroll in-house — you control the process, timelines, and submissions. A payroll bureau (like PSSG) manages the entire payroll process on your behalf as an outsourced service. Software is lower cost and gives more control; a bureau suits businesses that want to fully delegate payroll compliance to specialists.

Is there free payroll software available for UK businesses?

HMRC's Basic PAYE Tools is free for businesses with fewer than 10 employees, but it's very basic. For proper free trials, BrightHR, Employment Hero, and Sage Payroll all offer trial periods. Sage regularly runs promotions (e.g. 90% off for 3 months). For a fully free permanent option, very small businesses may find Basic PAYE Tools sufficient for simple payroll.

Best Payroll Software UK 2026 — Compare Top UK Payroll Tools

Select Top Payroll Software for your company in UK.

Written by Raj

Last updated: 26 August, 2026

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Employment Hero

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AI-Powered Payroll & HR for UK Businesses

Excellent

9.6

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Hibob

Modern HR & Payroll Built for Fast-Growing UK Teams

Excellent

9.5

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Free trial · No credit card required · HMRC-compliant · Auto-enrolment built in · 300,000+ businesses trust Employment Hero

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Best Payroll Software for UK Businesses in 2026

Sage Payroll

HMRC-Compliant Payroll from £1/month — Limited 90% Off Offer

4.9

(25700)

Top features

90% off for 3 months — from just £1/month
HMRC-compliant RTI & FPS submissions
Auto-enrolment pension calculations built-in
Employee self-service for payslips & leave

Pricing

Free trial not available. 90% off for 3 months — from £1/month (excl. VAT)

Sage Payroll features: 90% off for 3 months — from just £1/month

HMRC-compliant RTI & FPS submissions

Auto-enrolment pension calculations built-in

Employee self-service for payslips & leave

Sage Payroll pricing: Free trial not available. 90% off for 3 months — from £1/month (excl. VAT)

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"Sage Payroll has simplified everything. The 90% off offer made it a no-brainer to switch — it’s HMRC-compliant, auto-enrolment handles itself, and the employee portal means no more payslip emails."

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Expert PickBest for: HR + Payroll combined

Hibob

Modern HR & Payroll Platform for Fast-Growing UK Teams

4.9

(25700)

Top features

HR & payroll automation
Employee self-service portal
HMRC compliance & tax calculations
Real-time reporting & insights

Pricing

Free trial not available. Free demo available · from ~£13–£20/employee/month

Hibob features: HR & payroll automation

Employee self-service portal

HMRC compliance & tax calculations

Real-time reporting & insights

Hibob pricing: Free trial not available. Free demo available · from ~£13–£20/employee/month

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"I've been using HiBob since 2017 across three companies, and it never disappoints! The system's flexibility helps streamline operations, and the responsive support team ensures a smooth experience. Eight years in, I still love its ease of use and customization."

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Best Free TrialBest for: SMB payroll with free trial

Employment Hero

AI-Powered Payroll & HR for UK Businesses

4.5

(12400)

Top features

Free trial — no credit card required
HMRC-compliant payroll with auto-enrolment
AI-powered HR & payroll automation
Employee self-service portal

Pricing

Free trial available. Free trial available · from £7/employee/month

Employment Hero features: Free trial — no credit card required

HMRC-compliant payroll with auto-enrolment

AI-powered HR & payroll automation

Employee self-service portal

Employment Hero pricing: Free trial available. Free trial available · from £7/employee/month

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"Employment Hero has transformed our payroll process. The free trial let us test everything before committing, and HMRC compliance gives us complete peace of mind every pay cycle."

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Expert PickBest for: Global & multi-country payroll

PSSG

Your Complete Partner for Integrated Payroll and HR Solutions in UK

4.9

(25700)

Top features

HMRC-compliant payroll processing
Automated tax calculations & filings
Employee self-service portal
Comprehensive payroll reporting & analytics

Pricing

Free trial not available. Custom pricing · Contact for quote

PSSG features: HMRC-compliant payroll processing

Automated tax calculations & filings

Employee self-service portal

Comprehensive payroll reporting & analytics

PSSG pricing: Free trial not available. Custom pricing · Contact for quote

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"PSSG handled our UK and international payroll seamlessly. The compliance support across multiple countries saved us weeks of admin, and their team knows the regulatory landscape inside out."

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UK Payroll Specialist

Moorepay

Trusted HR & Payroll Software for UK Businesses with End-to-End Compliance

4.8

(12400)

Top features

HMRC-compliant payroll & RTI reporting
Auto-enrolment pension management
Employee self-service payslip portal
50+ years of UK payroll expertise

Pricing

Free trial not available. Custom pricing · Starting from approx. £10–£20 PEPM

Moorepay features: HMRC-compliant payroll & RTI reporting

Auto-enrolment pension management

Employee self-service payslip portal

50+ years of UK payroll expertise

Moorepay pricing: Free trial not available. Custom pricing · Starting from approx. £10–£20 PEPM

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"Moorepay takes the headache out of payroll. Every submission is HMRC-ready and employees love accessing their payslips anytime. Reliable, accurate, and the support team is brilliant."

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Popular in UK

BrightHR

Simple HR & Payroll Software — Trusted by 90,000+ UK Businesses

4.6

(18300)

Top features

HR & payroll integration for UK SMEs
HMRC-compliant via payroll partner integrations
Holiday, absence & rota management
24/7 UK employment law advice line

Pricing

Free trial available. Free trial available · Plans from £6/month

BrightHR features: HR & payroll integration for UK SMEs

HMRC-compliant via payroll partner integrations

Holiday, absence & rota management

24/7 UK employment law advice line

BrightHR pricing: Free trial available. Free trial available · Plans from £6/month

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"BrightHR handles our HR and connects seamlessly with our payroll provider. Setup was fast and the employment law support is worth it alone — we use it every week."

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Why Sage Payroll Leads the UK Market

See how Sage compares on the features UK businesses actually need.

Feature	Our PickSage Payroll	Employment Hero	Hibob
90% Off for 3 Months
HMRC-Compliant Payroll
Auto-Enrolment Pensions
RTI & FPS Submissions
Employee Self-Service Portal
AI-Powered Features
UK-Based Expert Support
Trusted by 2M+ Businesses
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