If your UK business has employees, you need payroll software. Running payroll manually — calculating tax, National Insurance, pension contributions, student loans, and statutory payments by hand — is not just slow, it is a guaranteed source of errors. One wrong tax code, one missed NI threshold change, one late RTI submission, and you are facing employee complaints, HMRC penalties, or both.

The UK payroll software market in 2026 has a handful of genuinely strong options, but they differ significantly in pricing models, compliance depth, integration with accounting platforms, and what they include versus what costs extra. This guide compares the five best payroll platforms side by side, with real pricing at different team sizes, so you can see what you are actually going to pay and what you get for it.

The 5 Platforms at a Glance

Platform	Pricing Model	Starting Cost	Accounting Integration	Pension Auto-Enrolment	Best For
Sage Payroll	Monthly subscription	£10/mo (5 employees)	Sage Accounting (native)	Standard + Premium	Businesses wanting payroll + accounting in one ecosystem
BrightPay	Annual licence	£69/year (3 employees)	Xero, Sage, QBO (via export)	All plans	Budget-conscious SMEs wanting the cheapest per-head cost
Xero Payroll	Per-employee add-on	£1.50/employee/mo (on top of Xero plan)	Xero (native)	Yes	Businesses already using Xero for accounting
QuickBooks Payroll	Base fee + per-employee	£5/mo + £1.30/employee/mo	QuickBooks (native)	Yes	Businesses already using QuickBooks for accounting
Moorepay	Per-employee monthly	From £1.90/employee/mo	Via export or API	Yes	Businesses wanting managed/outsourced payroll with software access

Real Monthly Cost at Different Team Sizes

Payroll software pricing can be misleading when you only look at the starting price. What matters is what you actually pay once your employees are included. The table below shows the real monthly cost for payroll only — excluding any separate accounting software subscription — at common team sizes.

Team Size	Sage Payroll (Standard)	BrightPay	Xero Payroll	QuickBooks Payroll	Moorepay
5 employees	£20/mo	~£5/mo	£7.50/mo	£11.50/mo	~£9.50/mo
10 employees	£40/mo	~£12/mo	£15/mo	£18/mo	~£19/mo
25 employees	£100/mo	~£22/mo	£37.50/mo	£37.50/mo	~£47.50/mo
50 employees	£200/mo	~£39/mo	£75/mo	£70/mo	~£95/mo

Looking at payroll cost in isolation, BrightPay is by far the cheapest because of its annual licence model. However, standalone payroll cost is only part of the picture. If you also need accounting software, the combined cost matters — and that is where the calculation changes significantly.

1. Sage Payroll — Best for Accounting + Payroll in One Ecosystem

Sage Payroll is the platform you choose when you want your accounting and payroll to talk to each other natively, without exports, imports, or manual journal entries. It is built to work directly with Sage Accounting, and for businesses that use both products, the integration is the single biggest practical advantage.

Top 5 UK payroll software comparison

Plans and pricing

Plan	Monthly Price (excl. VAT)	Extra Employee Cost	Key Additions
Payroll Essentials	£10/mo (5 employees)	£2/employee	Pay runs, PAYE, NI, RTI, payslips, P60s
Payroll Standard	£20/mo (5 employees)	£4/employee	+ pension auto-enrolment, CIS, enhanced reporting
Payroll Premium	£30/mo (5 employees)	£6/employee	+ HR, timesheets, document management, self-service

What Sage Payroll does best

The standout feature is native accounting integration. When you run payroll in Sage, the journal entries — staff costs, employer NI, pension contributions, PAYE liabilities — post directly to Sage Accounting. There is no export file, no CSV upload, no manual re-keying. The numbers are in your books immediately, accurately, and with a full audit trail. For any business where payroll is a major cost line, this integration means your profit and loss report and cash flow view are always up to date.

Sage is also exceptionally strong on UK compliance. Automatic tax code updates from HMRC, built-in CIS returns for construction businesses, pension auto-enrolment with NEST, NOW: Pensions, The People's Pension, and Smart Pension, and a guided year-end process that walks you through the April transition step by step. The platform has over 40 years of HMRC payroll compliance behind it.

The Premium plan adds genuine HR functionality — holiday management, sick leave tracking, timesheet submissions, and employee self-service through a portal and mobile app. For businesses with 15 or more employees, having payroll and basic HR in one system can replace a separate HR tool entirely.

Where Sage Payroll falls short

Per-employee costs are higher than BrightPay and the per-head add-ons from Xero and QuickBooks. At 50 employees on the Standard plan, the payroll bill alone is £200 per month. Larger businesses with simple payroll needs may find better per-head value elsewhere. The Essentials plan also lacks pension auto-enrolment, so most real businesses will need Standard at minimum.

Best for

UK small businesses with employees that use or plan to use Sage Accounting. The combined accounting and payroll integration is Sage's strongest competitive advantage and the primary reason to choose this platform over cheaper standalone options.

2. BrightPay — Best Value on Price Per Employee

BrightPay is a desktop-based payroll application that has built a loyal following among UK small businesses and payroll bureaus because it does one thing exceptionally well: it runs HMRC-compliant payroll at the lowest possible cost.

Plans and pricing

Edition	Annual Price (excl. VAT)	Employee Limit
Micro	£69/year	Up to 3
Small	£139/year	Up to 10
Medium	£209/year	Up to 25
Unlimited	£289/year	Unlimited

BrightPay Connect, the optional cloud add-on for remote access, dashboards, and employee self-service, costs extra — starting at around £0.60 per employee per month.

What BrightPay does best

Price. A 25-employee business pays £209 per year — roughly £17.42 per month. That is cheaper than any cloud-based competitor at the same team size. The unlimited edition at £289 per year means a 50-employee or even 100-employee business pays the same flat annual fee, making the per-head cost negligible at scale.

Despite the low price, compliance is comprehensive. RTI, PAYE, National Insurance, auto-enrolment, CIS, SSP, SMP, and year-end processing are all included. BrightPay is HMRC-recognised and trusted by accountants and payroll bureaus across the UK.

Where BrightPay falls short

BrightPay is a desktop application, not a cloud-native platform. Your payroll data is stored locally on your computer, which means you need to manage backups yourself. The optional BrightPay Connect cloud add-on provides remote access and employee self-service, but it adds cost and does not make the core product cloud-native.

Accounting integration is not built in. You export payroll journals and import them into your accounting software — an extra step that Sage and Xero handle automatically. There are no built-in HR features beyond basic employee records. If you want timesheets, holiday management, or document storage, you need separate tools.

Best for

Budget-conscious small businesses and payroll bureaus that want the lowest possible per-head cost and do not need native accounting integration or cloud access. Especially strong for accountants running payroll for multiple clients.

3. Xero Payroll — Best for Xero Users

Xero Payroll is not a standalone product — it is an add-on to Xero's accounting plans. If you already use Xero for accounting, adding payroll keeps everything in one platform. If you do not use Xero, this is not an option you can buy independently.

Fintech editorial illustration comparing multiple UK payroll software dashboards

Plans and pricing

Xero Payroll costs £1.50 per employee per month, added to the cost of your Xero accounting plan. Some Xero plans include a number of payroll employees in the base price.

Xero Plan	Plan Cost	Payroll Included	Extra Payroll Cost
Ignite (£16/mo)	£16/mo	Not included	£1.50/employee/mo
Grow (£37/mo)	£37/mo	1 employee	£1.50/additional employee/mo
Comprehensive (£50/mo)	£50/mo	5 employees	£1.50/additional employee/mo
Ultimate (£65/mo)	£65/mo	10 employees	£1.00/additional employee/mo

What Xero Payroll does best

If you are already a Xero user, adding payroll is seamless. Payroll journals post directly to your accounting records. Employees can access payslips through the Xero Me app. The payroll interface uses the same clean design language as the rest of Xero, so there is no learning curve. Auto-enrolment, RTI submissions, and statutory payments are all handled within the platform.

For businesses on the Ultimate plan, the per-employee payroll cost drops to £1.00 per additional employee, making it competitive at scale if you already need the Ultimate accounting features.

Where Xero Payroll falls short

You cannot buy Xero Payroll without a Xero accounting subscription, so the true cost is always the Xero plan plus the payroll add-on. A business with 10 employees on the Grow plan pays £37 plus £13.50 in payroll — £50.50 per month total. Compare that with Sage Accounting Standard at £39 per month, which already includes payroll in the price.

CIS support requires a separate third-party app rather than being built into the payroll. HR features are limited. Xero caps payroll at 200 employees per organisation, which is fine for small businesses but limits scalability.

Best for

Businesses already committed to Xero for accounting that want payroll in the same platform without switching providers.

4. QuickBooks Payroll — Best Budget Cloud Payroll Add-On

Like Xero, QuickBooks Payroll is an add-on to the QuickBooks Online accounting platform. It is positioned as a simple, affordable way to add payroll to your existing QuickBooks setup.

Plans and pricing

QuickBooks Payroll has a base fee of £5 per month plus £1.30 per employee per month, added to your QuickBooks accounting plan.

Team Size	Payroll Cost Only	Total with QBO Simple Start (£12/mo)
5 employees	£11.50/mo	£23.50/mo
10 employees	£18/mo	£30/mo
25 employees	£37.50/mo	£49.50/mo
50 employees	£70/mo	£82/mo

What QuickBooks Payroll does best

For businesses already using QuickBooks for accounting, the payroll add-on is one of the cheapest cloud-based options available. At £1.30 per employee, the per-head cost is lower than Xero's £1.50 once you get beyond 25 employees. Payroll journals flow directly into your QuickBooks accounting records, and the combined interface keeps everything in one place.

The setup is straightforward, and the payroll workflow is designed for non-specialists. RTI submissions, auto-enrolment, and statutory pay calculations are all included.

Where QuickBooks Payroll falls short

QuickBooks is a US-first product, and the UK payroll features are not as deep as Sage or BrightPay. CIS support is limited. The payroll product does not offer the same guided year-end experience that Sage provides. UK phone support for payroll-specific questions receives mixed reviews. If you need construction industry compliance or advanced statutory payment handling, QuickBooks may feel lightweight.

Best for

Businesses already using QuickBooks Online for accounting that need simple, affordable cloud payroll without switching platforms.

5. Moorepay — Best Managed Payroll Service

Moorepay is different from the other four on this list because it is not just payroll software — it is a managed payroll service. You get access to payroll software, but Moorepay's team can also process your payroll on your behalf. This makes it the right choice for businesses that want to outsource the payroll function entirely rather than run it themselves.

Pricing

Moorepay's pricing starts from around £1.90 per employee per month for the software-only option. Managed payroll services — where Moorepay's team runs payroll for you — cost more and are quoted based on your team size and complexity. Pricing is not fully transparent on their website, so you need to request a quote.

What Moorepay does best

If you do not want to learn payroll software, do not want to run pay runs yourself, and do not want to worry about HMRC submissions and year-end processing, Moorepay handles everything. Their payroll specialists process your pay runs, submit RTI, manage auto-enrolment, and handle year-end on your behalf. You provide the employee data and any changes, and they do the rest.

Moorepay also offers HR and compliance add-ons, making it a broader people-management solution. For businesses with 25 or more employees that find in-house payroll stressful or error-prone, outsourcing to Moorepay eliminates the operational burden entirely.

Where Moorepay falls short

Cost. Managed payroll is inherently more expensive than running software yourself. You are paying for a service, not just a tool. Native accounting integration is limited — payroll data typically needs to be exported and imported into your accounting platform. You also have less control over the day-to-day process, which some business owners find uncomfortable.

Response times can vary. If you need a last-minute change to a pay run, you are dependent on Moorepay's team availability rather than making the change yourself in real time.

Best for

Businesses that want to outsource payroll entirely and are willing to pay a premium for a managed service. Particularly suitable for medium-sized businesses with complex payroll needs that do not have a dedicated payroll person in-house.

Full Feature Comparison

Feature	Sage Payroll	BrightPay	Xero Payroll	QuickBooks Payroll	Moorepay
Cloud-native	Yes	Desktop (cloud add-on)	Yes	Yes	Yes
HMRC RTI submissions	Yes	Yes	Yes	Yes	Yes
Pension auto-enrolment	Standard+	All plans	Yes	Yes	Yes
CIS returns	Yes	Yes	Via third-party app	Limited	Yes
Native accounting integration	Sage Accounting	Export only	Xero	QuickBooks	Export/API
Employee self-service	Standard+ (payslips) / Premium (full)	Via BrightPay Connect (extra)	Xero Me app	Employee portal	Yes
HR features	Premium only	No	Basic	Basic	Yes (add-on)
Guided year-end	Yes	Yes	Yes	Yes	Managed by Moorepay
UK phone support	Yes	Email/chat	Limited	Limited	Yes
Mobile payslip app	Yes	Via Connect	Xero Me	Yes	Yes

Which One Should You Choose?

The right payroll software depends on two factors more than any others: which accounting platform you use, and how much you value integration versus pure per-head cost.

Choose Sage Payroll if you use or plan to use Sage Accounting and want your payroll and accounting in one connected ecosystem. The native integration — payroll journals posting directly to your books — is Sage's killer feature. It eliminates manual data transfer, reduces errors, and keeps your financial reports accurate in real time. Also the strongest option for construction businesses needing CIS compliance built into the payroll workflow.

Choose BrightPay if your priority is the lowest possible payroll cost and you are comfortable with a desktop application. At £289 per year for unlimited employees, nothing else comes close on price. Ideal for payroll bureaus and accountants managing multiple employers. You sacrifice cloud access and native accounting integration, but the savings are significant.

Choose Xero Payroll if you are already running your business on Xero and want payroll inside the same platform. The add-on pricing is reasonable, the integration is seamless, and the employee self-service through Xero Me is well designed. The catch is that you cannot buy it without a Xero accounting plan, and the combined cost can exceed Sage Standard — which includes payroll in the base price.

Choose QuickBooks Payroll if you are already a QuickBooks user and want the simplest path to adding payroll without switching platforms. At £1.30 per employee, the per-head cost becomes the cheapest cloud option once you pass 25 employees. Best for straightforward payroll needs without complex CIS or HR requirements.

Choose Moorepay if you want someone else to run your payroll entirely. You pay more, but you eliminate the operational burden. Best for businesses with 25 or more employees that do not have a dedicated payroll person and would rather pay for expertise than learn the software themselves.

The Integration Question

If your business has employees, payroll is almost certainly your largest single expense category. How that data gets into your accounting records matters. When payroll journals are created manually or exported as CSV files, there is a risk of error, delay, and mismatch between what your payroll says you owe and what your books reflect.

Sage, Xero, and QuickBooks all solve this through native integration — payroll data flows into accounting automatically. BrightPay and Moorepay require an export step. For a 5-employee business running payroll monthly, this is a minor inconvenience. For a 50-employee business with weekly pay runs, it becomes a meaningful operational difference.

The most common mistake businesses make when choosing payroll software is evaluating it in isolation. Payroll does not exist in a vacuum — it connects to your accounting records, your cash flow, your tax obligations, and your financial reporting. The platform that works best is the one that fits into your broader financial system, not just the one with the lowest per-head sticker price.

This article is for informational purposes only and does not constitute financial, tax, or payroll advice. Pricing and features are accurate as of March 2026. Visit each provider's website directly for the most current plan details.

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