The best free payroll software for UK small businesses 2025

There are several free payroll software options available—each promising to simplify your payroll process—but our top three recommendations are Shape Payroll, Primo Payroll, and EnrolPay. Each platform is HMRC-recognised and offers scalability for the future.

When you’re looking to start using HR and payroll software, choosing a free platform is a smart way to keep costs down when you start. But with the wrong free payroll software, what you save upfront can be eaten away by hidden fees and wasted admin time.

That’s why we recommend these three as the best free payroll software platforms. Just be aware that, as free packages, they’ll inevitably have limitations in place. Keep in mind that you’ll need to scale up to a paid platform eventually.

Compare free payroll software for SMEs

Based on extensive research into the best payroll software for small businesses, our top free tools are a great starting point for SMEs with limited payroll needs and budgets. 

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	Provider	Best for	User limit:	HMRC compliant
Shape Payroll	Primo Payroll	EnrolPay
Microbusinesses or side hustlers	Free customer support features	Retail and hospitality businesses
3	10	9

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Shape Payroll: best for sole traders or side hustlers

The Shape sidebar is designed to take care of core payroll functions such as editing account information, viewing payslips and recording HMRC submissions. Source: Shape Payroll

Who do we recommend Shape Payroll to?

I’d recommend Shape Payroll to those who run a side hustle and want HMRC-compliant software to pay yourself as a business owner. Its quick setup time makes it an ideal platform for time-stretched sole traders with little to no payroll expertise.

What do you get with Shape Payroll?

I particularly like Shape’s ‘starter wizard’, a tool to simplify the switch to Shape from another platform. It’s essentially a checklist that takes users through employee setup and onboarding in six clear steps, covering everything from name and address to P45.

Shape double-encrypts all sensitive information, such as entrepreneur card and bank account details. It also works with independent security teams to ensure its servers are up when users need them for 24/7 access to payroll data and information.

What don’t you get with Shape Payroll?

The key issue to keep in mind if you’re planning on using the free plan on Shape Payroll: it’s only free for up to three users. This will be ok for solopreneurs and microbusinesses, but if you have 10 employees and you’re still intent on using free payroll software, you should take a look at Primo Payroll instead.

Also bear in mind that the free plan doesn’t have any customer support channels (e.g. email, phone or live chat). However Shape is an easy-to-use system so this is not a deal-breaker, and you can send Shape a message through its online form or through social media. 

Primo Payroll: best for free customer support

Primo Payroll automatically updates its system to ensure employers understand and remain fully compliant with new tax codes. Source: Primo Payroll

Who do we recommend Primo Payroll to?

I’d recommend Primo Payroll to new business owners, or those without a lot of payroll software knowledge, as it’s the only provider on this list to offer free customer support: you can contact the Primo Payroll customer service team by email for (low-priority) expert help. 

Primo Payroll’s free plan is also available for 10 employees so it’s better for slightly larger teams.

What do you get with Primo Payroll?

A key strength is the simple automatic enrolment solution for pension management. Automatic enrolment for pensions is a huge admin burden. You’ll also receive basic features like RTI submission, and being able to send payslips via email.

With Primo Payroll, all auto-enrolment compliance tasks including the postponement period are performed automatically in the background. Any information saved in Primo will be instantly uploaded to a company’s pension system. And yes, it’s all available on the free plan – although pension providers may charge a small fee for the integration.

What don’t you get with Primo Payroll?

Primo does not offer bulk payments on its free plan, so users will have to manually send payments via bank transfer. The free plan doesn’t include a self-service portal – this is only available on the higher, paid tiers (so employees can’t easily view things like annual leave requests and accruement). 

EnrolPay: best for retail and hospitality businesses

EnrolPay’s self-service portal lets both employees and employers with minimal payroll experience easily track and view pay data. Source: EnrolPay

Who do we recommend EnrolPay to?

I’d recommend EnrolPay’s free plan, Self Service, to retail and hospitality firms. It’s a great way to get a foot in the payroll door with a basic platform, with no in-house IT expertise required – great for bricks-and-mortar businesses like shops or cafes.

What do you get with EnrolPay?

Employees (Self Service caters for up to nine) report good experiences with the self-service portal. Accessible from smartphone, tablet, laptop or PC, it is perfect for larger teams or managing workforces with high turnover (both of which are common in the service sector).

EnrolPay boasts a rollback function (for amending payroll before Full Payment Submissions are submitted) and write-back function (for correcting information that has already been submitted to HMRC). Both features are helpful for sectors employing part-time and temporary staff with fluctuating hours, like retail and hospitality.

What don’t you get with EnrolPay?

There’s one critical drawback users will need to know about EnrolPay’s free Self Service tier: it doesn’t perform payroll processing automatically and therefore may not meet RTI reporting requirements. Instead, employee earnings and tax data will need to be manually submitted to HMRC by finance experts.

This can be a fiddly process that invites errors and potentially costly penalties, so I’d suggest thinking about the compliance risks before choosing this option. You should look at Shape Payroll if you want a no-cost payroll platform that submits RTI automatically.

Is free payroll software right for me?

Free payroll software is best for UK businesses with fewer than 10 employees and no complex tax requirements. If your needs are greater, you should consider a paid plan.

Free plans can lack features crucial for payroll management (EnrolPay has limitations in this area) and offer less robust security measures or customer support options (bar Primo). This can create additional roadblocks for your business, particularly where manual workarounds are needed.

You should consider free payroll as a temporary measure while you research a paid or managed payroll solution that can accommodate your business growth. These offer scalability, advanced features and reliable support, saving you time and money in the future.

Fortunately, payroll software doesn’t have to be expensive. For more insight on payroll software costs, we’ve rounded up the best deals currently available on the market on our cost comparison page.  

When should I avoid using free software?

There are several scenarios in which the money saved won’t outweigh the critical risks. You should avoid free payroll software if:

• You have a team larger than 10 employees (free software won’t be able to support you).
• You have a complicated pay structure that includes employee bonuses and commissions. And for those working in hospitality, you’ll need to think about tips.
• You work in construction, as free software isn’t able to support CIS submissions.
• Your business is rapidly expanding. If you’re planning on hiring more employees in the coming months there’s little point in signing up for free software that’s only going to support you for a limited time.

What are the limitations of free payroll software?

The key restrictions that come with free payroll software are:

Restrictive features

With most providers, the “free” software will just be a severely limited version of the paid tiers the company offers. You will be missing out on features like holiday pay, a self-service app for employees to use, and reporting across multiple tax periods.

You’ll also find that some free providers don’t support automatic RTI submissions. This could result in financial penalties from HMRC for late or inaccurate submissions. It’s worth keeping in mind that being charged over a compliance error could be more expensive than paying for more reliable software.

Lack of integrations

It’s common for free payroll plans to lack third party integrations. You usually can’t sync free payroll software with an accounting platform, for example, which would streamline things, save time by avoiding repeated work, and enable you to better ensure financial compliance.

Limited support

Most free plans lack any form of user support, so you could find yourself in a stressful position in the event of a technical problem, or if you don’t understand how to use the software properly. The ability to access 24/7 support could well be worth the money.

Security concerns

Some free platforms don’t have the same level of security as a paid-for provider. As a small business owner, keeping compliant and avoiding hacks and data leaks should be a paramount concern. Steer clear of free payroll software solutions that don’t come with strong security measures.

What to look for in free payroll software

Our researchers have identified six pain points commonly experienced by business owners when paying staff. 

We’ve listed them below, as well as what features to look for when researching payroll software to address each issue:

• Scalability: switching payroll software can be a headache. Avoid future trouble by selecting a platform that offers seamless upgrades to paid plans as your business grows. Look for options that won’t break the bank or require extensive data migration in case you move between different software platforms, rather than up a tier.
• Onboarding help: payroll software can be daunting to set up. Opt for a vendor that provides robust implementation support, including live training sessions and readily available customer service via multiple channels (email, phone, web chat and knowledge base).
• Customisation: payroll can fluctuate due to employee absences, commissions and new hires. Prioritise software that permits last minute edits to payslips, account information and reports.
• Transparent costs: beware of “free” plans that hide additional fees, like monthly security charges. These can quickly make a seemingly free option more expensive than a budget-friendly paid plan. Scrutinise pricing to avoid surprises down the road.
• Employee help: constant questions about salaries can strain payroll departments. Invest in software with a user-friendly self-service portal accessible via mobile app. This allows employees to view and manage their payslips independently, fostering transparency and reducing administrative burdens.
• HR features: outsourcing HR can be costly. Finding a payroll software that takes care of basic HR functions (such as tracking employee benefits) is a great way to save money and reduce your list of business subscriptions.
• Strong security: protecting the sensitive employee data your payroll software will handle is paramount, not least due to the UK’s strict GDPR regulations. Do your due diligence to choose a provider with industry certifications like RTI compliance and ISO 27001, which demonstrates evidence of compliance. Additionally, verify that your provider stores the data in the UK, and confirm its data encryption standards (all payroll data being shared or stored should be fully encrypted, so it’s not possible for a third party to access or interact with it).

How to switch payroll software providers

Switching payroll software providers boils down to migrating all your employee and pay data from your current platform to the new software, ideally at the end of the tax year.

While the simplest route to improving your payroll software is to upgrade to a paid tier with the platform you’re already using, if you’re unhappy with your current software and its upgrade options, it’s time to switch. Once you’ve chosen a new provider, here’s how to switch:

Step 1: create an implementation roadmap

Start by creating a checklist for your payroll switchover, so you know when specific action points will go ahead. For example, when you will:

• Migrate your data to the new system
• Train relevant employees how to use the new system
• Start using the new system
• Officially shut down the old system

While it’s possible to change software providers at any time, switching mid-year can be complicated. It will make things go smoother if you aim to switch at the end of the current tax year.

Step 2: notify your provider and your staff

You’ll have to let your current provider know you’re moving to a new system. If you’re using a free software, you probably aren’t locked into a contract, making the switch easier.

You’ll also need to inform your employees. You’ll need to send out the final report of the year, and provide your employees with their end-of-year forms.

Step 3: collect your data

For as smooth a transition as possible, collate all your payroll data so you can easily migrate it to your new system. Make sure you’ve concluded any outstanding reports or processes before you do this.

You’ll need the following data ready to upload to the new system:

• Your employees’ names and addresses
• Their National Insurance numbers
• The details of employment for each employee
• All payroll records

Step 4: sign in to your new software and import your data

First, contact your new provider to make sure you understand the process of uploading your data. There’s no uniformity to the way data is transferred, so make sure you check your data’s combability. You should also check one more time that your data is correct and up-to-date before the upload.

Finally, log in to the new software and start the upload of all your payroll data.

In summary

We recommend Shape Payroll, Primo Payroll, and EnrolPay as the best free payroll software platforms. However, small business owners need to be aware that these come with significant restrictions, including employee number limits, which make them suitable for microbusinesses only.

Next steps: with your payroll software set up, you’ll need to start thinking about the best HR software for your small business.