Best Payroll Software in the UK: Top Picks and Key Features [2026]

Managing payroll in the UK comes with layers of complexity. Businesses need to stay compliant with HMRC rules, submit payroll through RTI on time, handle PAYE and National Insurance accurately, manage statutory payments, and keep pace with legislative changes. On top of that, payroll information is sensitive personal data, so businesses need to comply with GDPR and tightly control who can access it.

This buyer's guide breaks down the best payroll software in the UK for 2026. We've compared leading payroll software providers based on compliance, automation, usability, scalability, and the kinds of features UK teams rely on day to day.

What should payroll software do for UK businesses?

A UK payroll system should do more than generate payslips. It should streamline payroll management, reduce repetitive payroll tasks, and support both in-house payroll teams and outsourced models. The best tools reduce compliance risk while supporting different business needs, sizes, pay structures, and workforce types.

Core payroll functionality to look for

HMRC RTI submissions

Helps you submit payroll data accurately and on time to HMRC

PAYE & National Insurance tax calculations

Reduces errors and avoids issues caused by manual calculations

Auto-enrolment and pension contributions

Supports automatic enrolment and ongoing pension contributions with minimal admin

Statutory payments (SSP, SMP, etc.)

Helps ensure employees are paid correctly during leave, illness, or parental leave

Payroll reports and audits

Provides real-time information on payroll readiness, labour costs and creates an audit trail for compliance

HR software and timesheets integration

Reduces duplicate data entry and helps prevent payroll discrepancies

Employee self-service

Lets employees access payslips and payroll information via a self-service portal

Bank account integrations

Automates pay runs and connects with your bank account or produces BACS/CHAPS-ready files

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Top Payroll Software in the UK Compared

Top five picks: quick summary

Workforce.com

Best for: UK businesses needing an all-in-one payroll solution with scheduling and time tracking

Why it stands out: Payroll accuracy driven by real-time time & attendance data

Sage Payroll

Best for: SMEs and accountants

Why it stands out: Strong UK compliance and HMRC alignment

Xero Payroll

Best for: Small businesses

Why it stands out: Simple payroll tightly integrated with accounting

BrightPay

Best for: Accountants & bureaus

Why it stands out: Detailed payroll control, payroll reports, and year-end workflows

QuickBooks Payroll

Best for: Small teams

Why it stands out: Easy-to-run payroll with built-in accounting

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#1 Workforce.com

Workforce.com | Reviews

Workforce.com is the top choice for UK payroll software in 2026, especially for businesses where payroll accuracy depends on time, attendance, and pay rules. Rather than treating payroll as a standalone process, Workforce.com connects timesheets, scheduling, and payroll-ready data in one system.

That means fewer payroll errors caused by mismatched hours, missed breaks, or inconsistent pay rules because the inputs are cleaner before you ever run a pay period.

Key payroll and HR features

Payroll-ready time tracking - Captures worked hours, breaks, overtime, and shift allowances automatically from timesheets, eliminating manual data entry and ensuring pay runs reflect actual hours worked.

UK compliance and audit trails - Supports PAYE, National Insurance, pension contributions, RTI submissions, and year-end processes with comprehensive audit trails for payroll reports and records.

Built-in scheduling and labour cost management - Real-time scheduling, attendance tracking, and labour cost forecasting sit within the payroll system, with demand-based scheduling tools to optimise staffing levels and control costs.

Employee self-service and mobile access - Self-service portal and mobile app let employees view schedules, request time off, access payslips, and manage their information, reducing HR administrative workload.

Real-time dashboards & reporting - Live dashboards highlight payroll readiness, labour costs, missing approvals/timesheets and other exceptions so managers can resolve issues before payday.

Pros

• Reduces payroll errors by improving timesheet accuracy and approval data before payroll is processed
• Strong audit trail and compliance support for UK payroll requirements
• Real-time information on labour costs and multi-location visibility
• Better employee experience via mobile self-service and fewer admin touchpoints

Cons

• Moving from separate systems to an integrated platform requires configuration and change management
• Some features (e.g., complex overtime rules and allowances) may require initial configuration

Best for: Growing UK businesses with hourly staff, multiple sites, or complex pay rules

Pricing: Workforce.com provides quote-based pricing tailored to each business. Speak with our team to learn more.

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Xero Payroll

Xero Payroll | Reviews

Xero Payroll is a user-friendly payroll system designed for small businesses already using Xero for accounting. Payroll runs are straightforward, and it's ideal for teams with simple pay structures and a small headcount.

Pros

• Easy to use with minimal learning curve
• Native integration with Xero accounting
• Well-suited for straightforward payroll needs

Cons

• Limited advanced payroll controls compared to dedicated payroll platforms
• No integration with timesheets or labour management tools

Best for: Small UK businesses using Xero

Pricing (as of 2026): Payroll is included with Xero accounting plans:

• Ignite Plan: £16 per month, includes payroll for up to 5 employees, plus £1.50 per additional employee per month (up to 200 employees)
• Grow Plan: £37 per month, includes payroll for up to 5 employees, plus £1.50 per additional employee per month (up to 200 employees)
• Comprehensive Plan: £50 per month, includes payroll for up to 5 employees, plus £1.50 per additional employee per month (up to 200 employees)
• Ultimate Plan: £65 per month, includes payroll for up to 10 employees, plus £1 per additional employee per month (up to 200 employees)

Prices exclude VAT. Payroll is not available on the Simple plan.

Note: Pricing details are based on information available as of 2026. For the most current pricing and features, please refer to Xero Payroll's official website.

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BrightPay

BrightPay | Reviews

BrightPay is popular with accountants and payroll bureaus that want granular control over payroll processing, payroll reports, and year-end workflows. It offers strong flexibility and detailed functionality, though it's generally better suited to payroll specialists than general admin teams.

Pros

• Detailed payroll controls and customization
• Strong reporting and bureau features
• Handles complex payroll scenarios effectively

Cons

• Interface may be less intuitive for non-payroll specialists
• Native HR features and workforce integrations are more limited compared to all-in-one platforms

Best for: Accountants and payroll bureaus

Pricing (as of 2026): BrightPay now offers cloud-based pricing (desktop version discontinued after 2025/26 tax year):

• Cloud pricing is based on the highest recorded number of employers and employees
• Monthly subscription: Billed based on exact number of employers and employees used that month
• Annual payment: Pre-pay for 12 months based on expected usage, with discount applied. Additional usage charged at monthly rates.
• Micro employers (3 employees or fewer): Special offer available -free for individual employers

Use BrightPay's pricing calculator on their website for exact costs based on your requirements. Prices exclude VAT.

Note: Pricing details are based on information available as of 2026. For the most current pricing and features, please refer to BrightPay's official website.

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Sage Payroll

Sage Payroll | Reviews

Sage Payroll is widely used by SMEs and accounting firms, and it's recognised for dependable compliance features and strong alignment with HMRC processes. Sage also offers employee self-service options (including a self-service portal for payslips and payroll information) and generally has well-regarded customer support resources for UK users.

Pros

• Trusted UK payroll provider with long market presence
• Strong HMRC RTI and pension support
• Broad ecosystem of accounting tools

Cons

• Interface may feel less modern compared with newer platforms
• Workforce management and time-tracking capabilities are limited compared to platforms that connect time and attendance directly to payroll

Best for: SMEs and accountants prioritising compliance

Pricing (as of 2026):

• Essentials Plan: £20 per month (includes up to 10 employees), plus £1.30 per additional employee per month
• Standard Plan: £40 per month (includes up to 10 employees), plus £3.30 per additional employee per month
• Premium Plan: £60 per month (includes up to 10 employees), plus £5.30 per additional employee per month

Prices exclude VAT. The more employees you add, the less you pay per employee per month.

Note: Pricing details are based on information available as of 2026. For the most current pricing and features, please refer to Sage Payroll's official website. Pricing and features are subject to change. Details are based on publicly available information as of 2026.

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QuickBooks Payroll

QuickBooks Payroll | Reviews

QuickBooks Payroll is designed for small teams that want an all-in-one accounting and payroll package. It's typically chosen for ease of use and quick setup rather than deep customisable payroll controls.

Pros

• Simple setup process
• Integrated accounting and payroll in one platform
• Works well for small teams with straightforward needs

Cons

• Scalability may become a consideration as payroll complexity grows
• Advanced payroll controls are less extensive than specialist platforms

Best for: Small UK businesses already using QuickBooks

Pricing (as of 2026): Payroll is available as an add-on to QuickBooks accounting plans (except Sole Trader):

• Core Payroll: £5 per month base fee, plus £1.30 per employee per month
• Advanced Payroll: £10 per month base fee, plus £1.30 per employee per month

Advanced Payroll includes additional features such as multiple pension providers (NEST, Smart Pension, The People's Pension, NOW:Pensions, Aviva), benefits in kind management, and enhanced statutory payments (adoption pay, parental bereavement pay).

Prices exclude VAT. New customers may be eligible for promotional pricing for the first 6 months.

Note: Pricing details are based on information available as of 2026. For the most current pricing and features, please refer to QuickBooks Payroll's official website.

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Other notable options

These didn't make the top five, but can be worth considering depending on your needs.

PayFit

PayFit | Reviews

Best for: Start-ups and modern SMEs

Why consider it: Automation-led workflows and a clean interface

• Pros: User-friendly; generally strong onboarding experience
• Cons: May offer less flexibility for complex or highly customised pay structures

Moorepay

Moorepay | Reviews

Best for: Businesses that want outsourced payroll management

Why consider it: A managed service approach that reduces in-house workload

• Pros: Takes day-to-day payroll tasks off your team
• Cons: Provides less direct control compared to running payroll in-house

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Common payroll challenges for UK businesses

UK businesses commonly face several payroll-related challenges:

• Keeping up with HMRC requirements, GDPR, and legislative changes
• Avoiding payroll errors caused by inaccurate timesheets or data entry issues
• Managing statutory payments correctly
• Scaling payroll across multiple sites or departments
• Producing clear payroll reports and audit-ready records for year-end

Platforms that connect time and attendance to payroll (rather than relying on manual handoffs) can help prevent many of these problems before payroll is processed.

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Final thoughts: choosing the best payroll software in the UK

The best payroll software for UK businesses depends on workforce size, payroll complexity, and how closely payroll needs to reflect real working hours and pay rules. While core functionality like HMRC submissions and statutory payments is essential, many payroll issues start earlier, with inaccurate timesheets, missed approvals, or inconsistent pay rules.

Platforms that connect workforce management with payroll-ready data help reduce these risks by improving accuracy before payroll is processed. By unifying scheduling, time and attendance, compliance rules, and approvals, Workforce.com supports more accurate, compliant payroll for businesses with hourly staff, multiple sites, or complex pay structures.

See how Workforce.com helps UK businesses connect time tracking, compliance, and payroll-ready data. Book a demo today.