9 best payroll software for UK businesses

Getting payroll right goes beyond paying your team on time. It also involves staying out of trouble with His Majesty's Revenue and Customs (HMRC), avoiding costly mistakes, and saving hours of admin work every single month. Get payroll wrong and you could be on the receiving end of fines, ticked off employees, or even an audit.

That’s why choosing the right payroll software matters. The good ones can take care of all the tricky stuff for you. For example, Pay As You Earn (PAYE), National Insurance, Real Time Information (RTI) submissions, pensions, sick pay, parental leave… the lot.

In this guide, we deep dive into what payroll software is. We share nine of the best payroll software solutions for UK businesses. We also list some must-have features to look for, and how to pick the right payroll software for your team.

The information you'll find in this article is accurate as of April 2025. Pricing, features, and providers can change. So, always check the latest details on the official websites.

What is payroll software?

Payroll software is a tool that can help businesses run payroll without losing the plot. Good payroll software can calculate wages, take care of tax deductions, generate payslips, and send the right info to HMRC. And the best payroll software can do it all in one place.

Payroll software can take care of the heavy lifting. That includes Pay As You Earn (PAYE), National Insurance, and Real Time Information (RTI) submissions. Some tools will also look after pension auto-enrolment and statutory payments like sick pay (SSP) and maternity pay (SMP).

In short, payroll software makes sure you don’t miss anything important. It can save a lot of time on manual work, reduce mistakes, and help you meet HMRC requirements. And all without having to be a tax wiz. If you’re still doing payroll processes by hand or in spreadsheets, now could be the time to change the game.

9 best payroll software solutions

There are loads of online payroll software solutions out there. But not all of them work well for UK businesses. Some were built for the US and bolted on a few UK features later. Others were made for accountants, not business owners. And some might just not fit specific business needs or payroll processes. Here's a list of nine payroll platforms worth looking at. It includes what they actually do, what makes them different, and where they may fall short.

1. Rippling

Rippling is a comprehensive workforce management and HR platform that offers cloud-based payroll software. It enables UK businesses to pay employees and contractors in the UK and around the world.

Key features

• Rippling calculates PAYE and National Insurance for every employee automatically.
• Real Time Information (RTI) reports go straight to HMRC with every pay run.
• Rippling pulls in all your payroll data, like hours, leave, bonuses, and deductions, automatically. This means you can review and run payroll in a few clicks.
• The system handles pension auto-enrolment, including opt-outs and re-enrolment deadlines. It also supports tax year-end reporting and generates P60s and P45s.
• Statutory payments like sick pay, maternity pay, and shared parental leave are all built in.
• The platform has a self-service employee portal that employees can use to view payslips, tax documents, and leave balances any time.
• You can set different pay schedules for different groups. For instance, weekly, monthly, or both.
• Rippling connects with your HR, finance, and IT tools, too. So, everything stays in sync.

Strengths

• With Rippling, you can manage everything from onboarding to time and attendance, benefits, performance reviews, and more, without switching platforms.
• Rippling supports UK and global payroll and compliance.
• The platform is built on a single source of truth. So, any changes to employee data flow through to payroll without extra or manual steps.

2. ADP

ADP is an HR and payroll software provider for businesses that want help to run UK and global payroll.

Key features

• The system works out PAYE and National Insurance for each employee.
• RTI submissions go to HMRC every time you run payroll.
• The software covers auto-enrolment and tells you when to re-enrol staff.
• You can create and send year-end forms like P60s and P45s.
• The platform supports different pay runs, i.e., fortnightly or monthly.

Strengths

• ADP gives you the option to outsource payroll if you don’t want to do it yourself.
• Some industries get tailored setups, like retail and hospitality.

Weaknesses

• Some users report a steep learning curve when setting up or using the system.
• Customers say support during onboarding can feel disjointed. There's mention of issues being passed between many team members before being resolved.

3. Sage

Sage is a UK-based accounting software company. It offers payroll software with a focus on small and medium businesses that want to handle their payroll processes in-house.

Key features

• Sage calculates PAYE, National Insurance, and student loan deductions automatically.
• RTI submissions go straight to HMRC every time you process payroll.
• The platform includes tools for auto-enrolment and re-enrolment.
• You can create and send digital payslips, P45s, and P60s.
• The system supports multiple pay schedules and payment methods.

Strengths

• Sage has long-standing relationships within the UK and understands the market well.
• The software integrates with Sage’s own accounting tools, including Sage Business Cloud.

Weaknesses

• Some users mention that the software doesn’t offer proper historical payroll reports for year-end accounts.
• Some user reviews also note that Sage feels clunky and a bit outdated. There are reports of the interface seeming overly detailed, too. This can make simple tasks take longer than they should. 

4. BrightPay

BrightPay is a desktop-first payroll software. It's built for UK businesses that want control over payroll processes without having to use a cloud-based payroll software.

Key features

• The software calculates PAYE, National Insurance, and student loan deductions.
• RTI submissions go to HMRC directly from the software.
• BrightPay includes tools for pension auto-enrolment and re-enrolment.
• You can create and email payslips, P60s, and other tax forms.
• The system supports multiple payment schedules and flexible pay types.

Strengths

• ​BrightPay has the ability to run entirely on your desktop (until it becomes fully cloud-based in 2026). This can mean not needing to rely on an internet connection for managing payroll.
• BrightPay offers HR functionalities through its cloud add-on, BrightPay Connect.

Weaknesses

• BrightPay isn't cloud-based by default. This means that you need to back up your data manually. You can opt for their optional cloud add-on at an additional cost.
• Some users report that changes made to an employee’s pay don’t always reset the following month. This can cause issues if you forget to update it manually.

5. HiBob

HiBob is a people management platform that recently includes a UK payroll solution as part of its wider HR offering.

Key features

• The platform calculates PAYE, National Insurance, pro-rata pay, and overtime.
• It supports different pay schedules, including monthly and weekly.
• Payslip breakdowns include things like parental pay and salary adjustments.
• You can run payroll directly in HiBob and send payments to employees.
• It fuses with third-party payroll providers if you’re running payroll in other countries.

Strengths

• HiBob offers a full HR system as well as payroll software, which can mean less bouncing between tools.
• Some users mention that the platform's layout is simple, clean, and easy to use.

Weaknesses

• Some users say the logic behind certain features can be confusing. For example, employees can go into negative holiday balance without any warning.
• Users also mention that the mobile app has quite a few limitations in comparison to the desktop version. They mention that this is especially apparent when trying to view reports or check out detailed data.

6. People HR

People HR is a cloud-based HR platform. It includes payroll management functionalities tailored to UK businesses.

Key features

• The system calculates PAYE, National Insurance, and pension contributions for each employee.
• You can submit Real Time Information (RTI) reports directly to HMRC.
• Employees can access UK-format payslips and tax documents through the self-service portal.
• Approved leave and absence data flows into payroll.
• Payroll is powered by Paycircle, which is an HMRC-recognised payroll provider.

Strengths

• It’s fully compliant with UK payroll rules and handles RTI submissions without needing another tool.
• If you’re already using People HR for HR and time tracking, payroll fits into the same workflow.

Weaknesses

• Some users say the desktop app feels dated, clunky and harder to use than the mobile version.
• Some people also report it’s hard to get support to help with issues. That’s not ideal when you’re dealing with payroll. Especially if you’re up against an HMRC deadline or trying to fix an error before payday. 

7. Remote

Remote is a global cloud-based payroll platform that can assist UK businesses run compliant payroll.

Key features

• The platform can handle UK payroll, including PAYE, National Insurance, and statutory pay.
• You can generate payslips, track payment history, and store payroll records in one place.
• Remote supports multiple pay schedules, including monthly and fortnightly.
• It helps you stay on top of holiday, sick leave, and parental leave rules in the UK.
• If your team includes staff abroad, Remote can also run payroll across 60+ countries.

Strengths

• Remote gives UK businesses a way to manage both local and international payroll from the same dashboard.
• The system supports UK compliance. It works with local tax regulations, payment deadlines, and reporting needs.

Weaknesses

• Some users mention that while Remote claims to support UK payroll, there’s been confusion around local employment laws and processes.
• Others say there’s little flexibility when it comes to handling edge cases. For example, setting up a one-off pre-payment for an employee.

8. Personio

​Personio is an HR software platform that offers payroll functions tailored to UK businesses.

Key features

• Personio pulls payroll-relevant data like salary changes, leave, and hours worked directly from your HR records.
• The software prepares draft payroll runs so you can review all figures before confirming payment.
• Payslips and payroll documents are available to employees through a self-service portal.
• Personio stores payroll-related documents like contracts, payslips, and tax information in one secure place.
• The platform integrates with time tracking, absence management, and performance reviews, so all payroll data stays up to date automatically.

Strengths

• Personio combines HR and payroll into one tool, so you don’t need to manage separate systems.
• The platform supports automated workflows. This includes document signing and employee self-service, making it easier to manage the full employee lifecycle.

Weaknesses

• Some users mention issues with payroll reporting and accuracy, with occasional mistakes cropping up in figures.
• Others say workarounds are often needed for larger or more complex payroll structures.

9. PayFit

PayFit is a cloud-based payroll platform. It offers a UK-specific payroll solution as part of its broader HR suite.

Key features

• PayFit calculates PAYE, National Insurance, and student loan deductions for each employee.
• The platform automatically sends RTI submissions to HMRC with each payroll run.
• It includes pension auto-enrolment and re-enrolment tracking for workplace pensions.
• You can generate and distribute digital payslips, P45s, and P60s.
• The system supports statutory payments. For example, sick pay (SSP), maternity pay (SMP), and shared parental leave.

Strengths

• Payroll calculations and compliance tasks are built in for UK tax law. This includes RTI and pension rules.
• Merges payroll and HR management in a single platform.

Weaknesses

• Some users say the system can slow down or crash at peak times. This is especially true (and troublesome) around month-end payroll runs.
• Direct debits may require a third-party integration. This can add extra steps, expense, and complexity.

Why UK businesses need payroll software

Payroll involves a lot more than just pressing 'pay' at the end of the month. Whether you’ve got five employees or 500, the right payroll solution can take a lot off your plate by streamlining your payroll operations. Here are some of the main reasons business in the UK need payroll software:

Helps with HMRC regulations compliance

Staying on the right side of HMRC is always a good idea. A solid payroll system can help you meet tax compliance requirements. It can do this by making sure all your payroll data is up to date and that you submit it properly. This includes RTI submissions, PAYE calculations, and National Insurance contributions.

Let’s say you run a construction company with a monthly payroll. Your payroll software can automatically send your RTI reports to HMRC every time you run payroll. So, there's no need for you to do it 'by hand'.

Simplifies pension auto-enrolment

As workplace pension schemes are a legal requirement, there's more than pay to calculate. Great payroll software will take care of pension auto-enrolment and re-enrolment for you. That means they’ll flag when a new employee needs to be enrolled, manage opt-outs, and even manage employer contributions.

Consider you hire a new warehouse staff member and they hit eligibility after their probation. Your payroll solution can automatically enrol them in the company pension.

Saves time on repetitive admin

Manual payroll tasks, like calculating overtime, adjusting for sick leave, and entering tax codes, can eat up many hours every month. Payroll software can put these pesky jobs on autopilot. The result? You don't have to be stuck in spreadsheets all day.

Got a retail manager who works overtime during the holiday rush? Payroll software can pull their hours straight into the payroll run without you needing to do the maths manually.

Improves accuracy and reduces errors

When it comes to payroll, even a tiny mistake can mean big problems. Think underpaying staff or overpaying tax. Payroll software can help reduce errors by doing complex calculations automatically and flagging anomalies.

Say you accidentally allocate an employee two pay rates. The payroll system can spot the conflict before the payroll is finalised.

Supports employee trust and satisfaction

Nothing burns the trust bridge faster than a late or incorrect pay packet. Payroll software helps you make sure that you pay your employees the right amount, on time, every time. It can also enable them to easily view their own records. This can have benefits for them and your HR team.

For example, consider someone who wants to check their payslip or download a P60 for a mortgage application. They can do it straight from the employee portal without pestering HR.

Essential features UK payroll software should have

Not all payroll systems are created equal. If you’re running a business in the UK, there are a few non-negotiables to look for when deciding on which payroll software to choose. Here are some of the key features that can help you manage tax calculations, stay compliant, and make payday a breeze:

HMRC compliance and RTI submissions

Your payroll system should tick every local tax compliance box. That means it needs to handle tax calculations like PAYE and National Insurance. It also needs to submit RTI reports to HMRC on time. Having these features to lean on can make the legal side of payroll processes a far less stressful feat.

Say you employ part-time staff in a hospitality business. Your online payroll software should be able to adjust PAYE and NI contributions based on changing weekly hours. And then it should file everything directly with HMRC.

Automatic pension auto-enrolment

The UK’s auto-enrolment rules mean you’re responsible for putting eligible employees into a pension scheme. It's also on you to keep them there unless they opt out. A good payroll solution should track workplace pension schemes. It should also flag when staff become eligible and process contributions.

Say you’ve got an employee turning 22 with a salary over £10,000. Your software should spot this and automatically enrol them in the scheme without you having to lift a finger.

Payslip generation and employee self-service portal

These days, more than ever, employees expect quick, easy access to their records. Your payroll software should enable employees access to their payslips, tax documents, and leave balances. Ideally, this should be doable through a secure online payroll software portal.

Let’s say someone’s applying for a mortgage. Instead of bothering HR for a P60, and potentially waiting days to get it, they can log into the payroll software and download it themselves.

Support for statutory payments

SSP, SMP, SPP, you name it. If your team has a right to it, your payroll software provider needs to support it. That includes the right calculations, correct leave tracking, and accurate reporting.

For instance, if one of your employees takes parental leave after their baby arrives, your payroll software should automatically process payments based on their earnings history.

Flexible pay schedules and adjustments

Payroll companies should cater to all types of payment structures. Not just monthly ones. You might have salaried staff, part-time workers, or contractors. So, look for tools that support multiple pay schedules, flexible adjustments, and back pay calculations.

For instance, say you pay your operations team weekly and your office staff monthly. It's going to be super helpful for you if your payroll platform can handle both. Otherwise, you're looking at two separate systems.

Integration with accounting and HR software

The best payroll systems don’t work in isolation. They play nice with your other tools. For example, your accounting software, HR platforms, and time tracking apps. Without this, it can become impossible to streamline payroll management and employee benefits, for example.

Think of a retail business using Xero for accounting and a separate HR platform for time off. Payroll software that integrates with both means fewer manual steps and way less room for error.

Steps to choosing the right payroll solution

When choosing the right payroll software, you need to create a 'must-have' list that ensures it's a solution that will actually work for your business. It should handle your specific payment processes, match your team’s exact structure, and mesh well with the tools you already use. Here are some steps to follow:

Step 1: Assess your payroll needs

Start by mapping out what your payroll looks like right now. How often do you run payroll? Do you have full-timers, part-timers, or a mix of both? Do your payment processes include overtime, bonuses, or holiday adjustments? Get super clear on how many people you’re paying, how you track their time, and what admin stresses you want to avoid.

The clearer your picture, the easier it’ll be to spot a system that ticks all the boxes.

Step 2: Prioritise UK compliance features

Don’t just assume a payroll solution advertised in the UK covers UK-specific rules. You need to check that it can take care of tax filing requirements, RTI submissions, and pension auto-enrolment properly. Look for confirmation that it’s properly adapted for UK payroll operations. Not just cleverly rebranded for a UK audience.

If it doesn’t meet HMRC’s standards, it’s probably not worth the risk... or the money.

Step 3: Look for automation and ease of use

Switching to payroll software that's more complicated than your current payroll setup totally defeats the object. A good payroll solution should make things easier, not harder. Look for platforms that put important steps on autopilot. Things like sending RTI submissions, calculating deductions, and generating payslips. Otherwise, expect to be wasting time re-entering the same data.

Bonus points if it lets employees self-serve with no need for HR intervention or 100 clicks.

Step 4: Check integrations with your existing tech stack

The right payroll software for your business should connect (easily) with the systems you already use. That might include accounting software like Xero or QuickBooks, time tracking tools, or your HR system. If the payroll tool can’t sync data to and from these systems automatically, you’ll either have to do double-entry or deal with messy CSV uploads. Neither of which is ideal.

A tight integration saves time and helps keep everything aligned.

Step 5: Compare pricing and support

Unfortunately, not all payroll software providers are upfront about costs. Some charge extra for additional pay runs or reporting features. Others bundle in support, but fail to inform you that it only applies if you’re on the top-tier plan. So, check what’s included in each package. It also pays to find out whether support is UK-based or global.

You don’t want to be stuck in a chat queue for hours or helped by somebody who doesn't understand UK payroll requirements come issues on payday.

Step 6: Consider if the software can grow with your business

Keep in mind that your payroll needs today won’t necessarily match your payroll processes next year. Maybe you’ll expand to new locations, hire contractors, or add new departments. Make sure the software can scale with your business and handle more complex payroll tasks if needed.

That might include things like multiple pay schedules, department cost tracking, and future integrations (even if you don’t need them yet).

Step 7: Read reviews from other UK businesses

Marketing landing pages tell one story. Real users often tell others. Look at what other UK businesses say about the payroll software you're considering. Are they happy with how the system manages tax and compliance? Have they run into problems with setup, support, or flexibility?

Comparing notes across a few payroll companies can shine a spotlight on red flags early in the piece. This is key to avoiding nasty surprises later on!

Payroll software for businesses of every size

Whether you’ve just hired your first employee or you’re years into the game and running payroll across multiple countries, you need a solution that can keep up without cutting corners. That’s where Rippling really shines.

Rippling’s payroll software makes it easy to pay employees and contractors correctly and on time. It handles UK payroll end to end, including taxes, RTI submissions, and pension compliance. It also generates digital payslips and tax forms, and tracks leave, bonuses, and deductions. And it does it all automatically.

If you hire abroad or plan to in the future, Rippling’s Global Payroll can run compliant payroll around the world from one unified system. You can pay UK staff alongside international employees in a single pay run while keeping up with local tax rules, filing obligations, and statutory payments.

The best part? Payroll is just a slice of what Rippling offers.

The platform also includes full HR, IT, and Spend management capabilities. You can onboard staff, assign equipment, approve expenses, and manage benefits, all from the same dashboard. Everything’s connected because it’s built on a single source of truth. That means changes to employee data (like salary, role, or working hours) automatically flow into payroll without any manual rework.

Rippling can scale with you. No matter if you're a startup managing a single pay run or a growing enterprise running payroll across teams, countries, and pay schedules, the system can adapt.

It's the ultimate payroll solution that covers the UK and beyond. And it doesn’t require stitching together five different tools to get there.

Payroll software FAQs

What’s the payroll system in the UK?

The UK payroll system is built around Pay As You Earn (PAYE). This is how employers collect Income Tax and National Insurance from employees’ wages on behalf of HMRC. So, every time you run payroll, you also need to submit an RTI report to let HMRC know exactly what you’ve paid and deducted. On top of that, you’re also responsible for things like pension auto-enrolment, statutory payments, and keeping payroll records for at least three years.

In short, UK payroll goes far beyond paying your team. There's a bunch of rules to follow, and you need to follow them to the letter.

Can you get HR software with payroll built in?

Yes, and it’s often the smartest choice. HR platforms, like Rippling, offer payroll features alongside HR tools, like onboarding, time tracking, and performance reviews. What this means is that everything’s in one place. So, you don’t have to manually sync employee changes (like salary or hours) across separate systems.

Fed up with switching between multiple tabs and copy-pasting data? HR software with built-in payroll can make your life way easier.

What’s the best payroll software for a small business?

The best payroll software for a small business depends largely on how the business runs. For instance, how many people they pay, how often they pay them, and what kind of support they need along the way. Some small businesses are fine with basic tools. Others need something a bit more robust that can do more than just pay runs.

Rippling can be a fantastic option for small businesses. It’s built to grow with you. You can start by using it just to run your UK payroll. Then you can add on HR, time tracking, benefits, or even global payroll when you’re ready. And when you do, everything still lives in one system. So, if you change someone’s salary or move them to a new role, that data flows straight into payroll.

If you want a serious payroll solution from day one, without having to switch platforms as your team grows, Rippling can be the perfect choice.

How much does payroll software cost?

Prices can range quite significantly depending on what’s included and how many employees you’re paying. Some providers charge a flat monthly fee. Others charge per employee, per pay run, or per feature. Always read the fine print.

If you've dabbled in the idea of free payroll software, know it's out there, but be wary. Most free tools have many limitations and don’t scale. You might get a few basic features for free. But you’ll often hit a wall once your team grows. Otherwise, you'll find yourself needing to pay for core functions like pension management or employee self-service.

As for cheap payroll software, the same rule applies: you get what you pay for. It might seem like a bargain initially. But you need to consider if it’ll save time, reduce errors, or take the fretting out of compliance in the long run. ROI matters more than the sticker price.

Can you use Xero for payroll?

Yes, Xero offers payroll functionality for UK businesses. However, it’s a paid add-on to its accounting software. It includes some core features like RTI submissions, PAYE calculations, and pension auto-enrolment. It can be a potential fit for small businesses that are already using Xero for bookkeeping. 

It might not be ideal for larger or more complex setups, though. Things like multiple pay schedules, global teams, or advanced reporting can be problematic to manage within Xero’s system alone.

This blog is based on information available to Rippling as of May 2, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.