Best Payroll Software For Small Businesses In The UK
Cost Analysis and Pricing Models Among Leading Payroll Software in the UK
For small businesses, every pound counts. Payroll software pricing in the UK typically falls into two main models: per-employee monthly subscriptions or annual fixed fees. For example, Xero Payroll and QuickBooks Payroll use a blend of base fee plus additional cost per employee, making them ideal for very small teams but possibly more expensive as staff increases. In contrast, BrightPay offers a straight annual fee—£59 for up to three employees—which provides predictability for microbusinesses.
Bundled payroll and accounting packages, such as those from FreeAgent and KashFlow, offer good value for all-in-one solutions, often negating the need for double data entry and reducing end-of-year reporting headaches. Their pricing remains competitive, and for those already using the platform for bookkeeping, payroll add-ons are cost-efficient.
For startups with minimal payroll needs or those only employing directors, HMRC Basic PAYE Tools is a popular cost-free option. However, limitations—such as lack of automation and manual updates—mean many outgrow it as operations expand. At the mid- to high-end, PayFit’s and Staffology’s monthly premiums reflect their expanded automation and integration capabilities, catering to businesses seeking robust technical features as they scale.
It’s essential to also account for indirect savings. Time reclaimed from payroll processing tasks, minimised administrative errors, and avoidance of penalties all contribute to net positive impact. Moorepay, with managed payroll services, offers peace of mind for business owners who’d rather not handle these details at all—often at a premium, but with tight compliance and dedicated account management included.