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If you pay employees in the United Kingdom, His Majesty would like a word. More specifically—His Majesty’s Revenue and Customs, or HMRC, the U.K.’s tax authority. And not just once a year, but every payday, like clockwork. It’s a system built on precision, and the best payroll software in the U.K. leaves no room for error.
The right provider doesn’t just handle the math—it helps you stay compliant, whether issuing payslips, paying National Insurance, or calculating statutory pay. The best systems also update automatically when regulations change and keep your payroll data airtight and GDPR-compliant.
In this guide, we’ll share some of the best HR and payroll software options in the U.K.—and show you what to look for when choosing a solution to hire and pay in the United Kingdom with confidence and ease.
5 of the best payroll software providers in the UK
Whether you're running a micro business or managing payroll for a 500-person enterprise, the right software can save hours each month—and protect you from costly compliance slip-ups.
From fully outsourced services to platforms that integrate with your accounting tools, every provider on this list is HMRC-compliant and built to handle the unique demands of the U.K. payroll system.
1. Oyster
Best payroll solution for global teams with UK employees
Oyster’s global payroll solution is ideal for companies with cross-border teams—and its U.K. payroll capabilities are a key part of that offering. If you hire in multiple countries, including the U.K., Oyster simplifies compliance at every step. It automatically manages U.K.-specific requirements like PAYE (Pay As You Earn, the system employers use to withhold income tax and National Insurance), real-time information (RTI) reporting, National Insurance, and auto-enrollment pensions, all while ensuring GDPR-compliant data handling.
Standout features
- Fully managed payroll and HR compliance
- Automated tax filings and contributions
- GDPR-compliant data protection
- Additional services like employer of record (EOR), benefits administration, and contractor support
Pricing
Oyster’s global payroll services start at $29/month per employee.
2. Xero
Ideal for small businesses already using Xero’s accounting software
Xero Payroll is an add-on to the widely used Xero Accounting platform. For small businesses, it’s a clean, all-in-one solution. It supports RTI submissions (required real-time reporting to HMRC), workplace pensions, and payslip generation. It also integrates with popular financial tools like Stripe for payments, Wise for international transfers, and Expensify for expense management.
While Xero offers full payroll functionality in the U.K., businesses with international teams will likely need to integrate a third-party global payroll app, which adds per-user costs on top of the Xero subscription.
Standout features
- Calculates payroll tax, pension contributions, and employee leave
- Self-service portal for payslips, timesheets, and leave requests
- Automatic RTI and HMRC submissions
Pricing
Xero’s payroll software ranges from £16 to £59/month, depending on the plan and number of users.
3. Sage
Great for small businesses with room to grow
Sage is a trusted U.K. accounting and payroll software provider, and its flexibility makes it a go-to choice for growing business needs. Its tiered plans—designed for businesses with five to 150 employees—make it a strong choice for teams that need payroll solutions that can grow alongside them.
Sage is primarily built for U.K. operations, with some coverage in Canada and the United States. Businesses with international ambitions may find its global capabilities limited.
Standout features
- Modular add-ons, including accounting software integration, pension administration, and invoice management
- Strong audit trails and customizable payroll reports
- Self-serve access to payslips and P60s for employees
Pricing
Sage’s payroll software starts at £10/month for five employees (£2/month per additional employee), with advanced plans up to £30/month for five employees (£6/month per additional employee).
4. Moorepay
Popular with businesses that want fully outsourced payroll processing
Moorepay offers fully managed payroll services, handling everything from calculations to compliance. It’s an excellent choice for companies without dedicated HR or finance teams. With optional add-ons for HR support, performance management, and expense tracking, Moorepay is an all-in-one solution for back-office administration.
Similar to Sage and Xero, Moorepay’s services are limited to the U.K., so businesses that plan to expand globally may eventually outgrow the platform.
Standout features
- Fully outsourced payroll processing
- U.K.-specific accounting software and payroll services
- Optional HR and admin add-ons for growing teams
Pricing
Moorepay offers custom payroll service pricing based on team size and service needs.
5. Brightpay
Great for desktop-first businesses managing payroll in-house
Brightpay is a desktop-based payroll software built for businesses that prefer to manage payroll internally. It’s a solid option for U.K.-based teams that want hands-on control. However, it’s less ideal for remote-first or scaling teams that need cloud-based U.K. payroll software—unless you upgrade to Brightpay Connect, the platform’s cloud-computing add-on.
Standout features
- Payroll coverage for the U.K. and Ireland
- Employee self-service dashboard for payslips and leave requests
- Optional cloud add-on for online access and automation
Pricing
Desktop plans start at £84/year for micro businesses and scale up to £1,589/year for payroll service providers, depending on the number of employees.
How to choose your payroll provider
Whether you’re looking for the best payroll software for a small business in the U.K. or a platform that can scale across borders, the right provider should align with both local compliance requirements and your long-term growth goals.
Here are four key factors to consider when evaluating your payroll service options:
- Automatic filings and compliance updates: U.K. payroll must follow strict HMRC regulations. Choose a provider that automatically updates tax codes, handles RTI submissions, and generates required forms like P60s and P45s—so you’re not chasing deadlines or risking fines.
- Scalability: If you plan to grow and hire beyond the U.K., you’ll need payroll software that can support multi-country compliance. Not all providers are built to scale globally, and using the wrong one can make payroll needlessly complex and error-prone.
- HR and payroll integrations: HR and payroll go hand in hand. Integrated tools help teams work smarter by reducing manual tasks and keeping employee data in sync. Look for platforms that connect payroll with features like onboarding, leave management, and performance tracking.
- Return on investment: The best payroll software takes a load off your shoulders—and your bottom line. Automating repetitive tasks lets your team focus on strategic work instead of getting bogged down in admin, ultimately saving money and improving efficiency.
Hire and pay employees internationally with Oyster
Payroll isn’t just a numbers game—it’s how you grow your team, keep them engaged, and stay compliant no matter where you hire. As you scale across borders, you need more than a provider that processes payslips—you need a partner that understands global growth.
With Oyster, you can hire, pay, and support talent in over 180 countries without setting up local entities or navigating complex regulations on your own. Our all-in-one platform is built for international teams, covering everything from payroll and benefits to compliance and oversight.
While other providers focus on processing payroll, Oyster’s global payroll solution helps you build a competitive workforce—whether you're hiring in the U.K. or elsewhere.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
