The 5 best HR and payroll software platforms for small businesses in 2026

Find out how you can manage your people and finance departments in one go in our in-depth review of the best HR and payroll systems.

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Featured – HiBob: Simplifies & automates

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Moorepay: Cloud-based compliance

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Compare software solutions to find the best option

The best HR and payroll software for small businesses is MHR iTrent, thanks to its impressive modules for upskilling employees. Our findings are based on detailed analysis into a variety of platforms, carried out alongside an independent reviewer. But remember, the best software for you depends on your specific needs.

Streamlining your HR and payroll into a single software solution is a smart way to improve efficiency and compliance. The delayed Employment Rights Bill is expected to be phased in at the beginning of 2026, so with key changes to UK law on the horizon, you’ll need a system that can adapt to them.

The best HR and payroll software at a glance

Click any of the links above to receive zero obligation quotes on HR & Payroll service provider costs.

A note on pricing: payroll and HR software brands are known for their quote-based approach to pricing. I’ve highlighted transparent prices where I’ve been able to, but you can also get personalised quotes in minutes with our free quote matching tool.

💡Key takeaways

  • MHR iTrent is the best all-round HR and payroll platform due to its employee training using built-in Learning Management Software (LMS).
  • Staffology is particularly strong at onboarding less tech-savvy users, thanks to its live training course and 24/7 chatbot.
  • Rippling is a solid option if you’re particularly concerned about breaches in payroll compliance, thanks to its automatic alert system.
  • Since April 2025, there have been new reforms under the Employment Rights Bill for sick pay, maternity pay and probation.

Comparison table: the top HR and payroll systems

0 out of 0
Provider
Best for
Pricing
HMRC Compliant

Not yet assessed

Tech and healthcare businesses

Finance businesses

Seasonal businesses

Marketing and sales businesses

Managing and paying freelancers

From £39 per month (for up to 19 payslips)

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We last updated this article on 27 November 2025
  • All the pricing and information in this article was verified as accurate on 27/11/2025. However, do keep in mind that the HR & payroll software industry can change and adapt quickly. Therefore we would recommend confirming any pricing details directly with the providers before making any financial decisions.
Our methodology: how we tested HR and payroll software

At Startups, it’s important to us that the product recommendations we make to small businesses are useful, accurate, and based on thorough product testing. We tested 10 payroll and HR systems across seven categories of investigation, which cover the most frustrating aspects of managing HR and payroll according to real-life users:

  • Core functionalities – how well does it carry out basic HR and payroll functions, such as processing payslips?
  • Compliance management – does it provide expert advice or other resources to help with payroll compliance?
  • Other services – can it be used to manage benefits, recruitment, and employee training?
  • Mobile app – is there a mobile app available? What can users do with the self-service portal?
  • Reporting – can it generate individual employee reports, change reports, and create a payroll register?
  • Integrations – can it integrate with your other business software? Is there an open AI to build custom integrations?
  • Customer support – are there email, phone, or live chat support channels? Is the helpdesk open 24/7?

1. MHR iTrent: Best for tech and healthcare companies

Employees can make note of any learning modules they are working on in the dashboard of MHR’s self-service portal.

Suitable if:
  • You want the option to build your own reports
  • You want to integrate with employee benefits software (Wagestream), so you can manage bonuses and work perks
  • You want assistance via email and phone support (MHR iTrent aims to call every case back within two hours)
Not suitable if:
  • You need 24/7 customer support
  • You want live training to help get to grips with the system
  • You want support via live chat
Key features

  • New starter onboarding helps you integrate new staff
  • Frequent HR legislation updates for managers 
  • Upskilling modules for data analysis

Who is MHR iTrent best suited to?

MHR is a specialist in employee learning, and its HR software iTrent is a great fit for fast-paced sectors like tech and healthcare. Both experience constant change, and upskilling ensures workers can adapt to new technologies, regulations, and best practices.

Its built-in Learning Management Software (LMS) can be used to host, track, distribute, personalise, optimise, and scale up your corporate training programmes. MHR iTrent can also help speed up your talent hunt with its recruitment module, which provides automated recruitment processing.

What I like about MHR iTrent

  • Salary budgeting: employee wages are rising everyday (the National Living Wage saw a rise in April). iTrent’s unique salary modelling feature helps firms stress test new hires to gauge how a pay change will affect budgets.
  • Timesheets: iTrent’s mobile workforce management feature lets employees clock-in and out themselves. This data then flows directly to payroll, so consultant staff – or those working to a timesheet – know that their hours are accurately recorded and compensated. 
  • Employee empowerment: iTrent provides pre-recorded training videos and a knowledge base to guide employees through the onboarding process. Employees can access MHR iTrent via the iTrent Employee Self Service (ESS) portal. 

Reasons to avoid MHR iTrent

iTrent is not qualified to give advice on payroll compliance through the iTrent platform. Users will need to hire a third-party expert or auditor to ensure they are up-to-date with tax and legislation changes. However, MHR is ISO/IEC 27001 certified, which means it meets international security standards for protecting employee data.

Another issue for some might be the lack of 24/7 support. If a company has a payroll or HR emergency, they won’t get help from iTrent outside of working hours. You might want to consider the all-hours chatbot provided by Staffology instead.

How much does MHR iTrent cost?

MHR iTrent doesn’t publicly list the cost of its HR and Payroll software, instead it can provide your business with a bespoke quote.

Want to outsource your payroll or HR?

MHR might be our top-rated software for managing both your HR and payroll duties in-house. However, if you want to pay to outsource your HR or payroll tasks to a third-party provider, our number one brand is IRIS. Check out our reviews of the best payroll service providers to find out more about IRIS’ offerings.

2. Rippling: Best for finance companies

Rippling dashboard payroll

Rippling makes HR and payroll processes like onboarding simple to understand with its desktop walkthroughs.

Suitable if:
  • You're a global workforce (Rippling supports payroll compliance for employees based in over 150 countries)
  • You want scalability, with a per employee pricing structure
  • You want strong security and compliance features
Not suitable if:
  • You want fast payments (they usually take two to four days to reach an employee's bank account)
  • You want a free trial to test the software before you purchase
  • You want your data to be stored in the UK
Key features

  • Employee background checks to comply with Financial Conduct Authority (FCA) regulations on senior staff qualifications
  • Know Your Customer (KYC) checks for finance businesses carrying out thorough checks on the identity and source of wealth of their clients
  • Automated leave tracking ensures teams know how to adjust workloads if a key account role or manager goes on leave

Who is Rippling best suited to?

Rippling’s automatic alert system for breaches in payroll compliance is what impressed us most in testing, making it particularly useful for finance and insurance companies. We were reassured to find that if there’s a breach in payroll compliance, Rippling will instantly notify users – potentially saving thousands in avoided penalty fees.

Financial sectors are specially regulated, meaning compliance is a particularly sticky area that Rippling’s strong security features (including certificates for three international security standards) can help smooth out.

What I like about Rippling

  • Ease-of-use: Rippling’s interface is similar to Slack and, thanks to its helpful walkthrough tour and live training features, the integrated HR and payroll platform is easy for new users to get to grips with. Employees can also access the Rippling mobile app to quickly request time off or submit expenses. 
  • Find talent faster: As part of its recent October 2025 update, Rippling has rolled out a new AI-powered Application Review feature, which helps your recruitment efforts by highlighting the top candidates based on criteria you set.

Reasons to avoid Rippling

Unlike a provider like Moorepay, Rippling’s vendor data is stored in the US, which could be a security concern for companies with sensitive customer data.

However, I was impressed by its long list of security features, and I think these should be enough to suit most businesses that don’t require advanced data protections. To demonstrate its security compliance, Rippling holds the following certifications and attestations:

  • SOC 1 Type II
  • SOC 2 Type II
  • ISO 27001
  • ISO 27018
  • CSA STAR Level 2

How much does Rippling cost?

Rippling doesn’t disclose its costs online, and instead will provide bespoke prices for users. However, Rippling is generally known to be a low-cost software, and it has previously listed that its fees start at £7 per user, per month

Berkay Kinaci is the COO at Speaktor, where he leads operations on an AI-powered platform that helps businesses and content creators make the most out of voice technology:

My experience using Rippling:

Rippling was great for us when we were just starting out and only had 15 members on our team. It’s really easy to use and tidy, which is great for a new business that doesn’t have an HR staff. You can handle onboarding, payroll, time off, and even benefits all from one dashboard. We did most of the work ourselves without aid.

Berkay Kinaci
Are you reading the right article?

If you’re looking for standalone HR or payroll software, rather than integrated HR and payroll, check out our reviews of the best HR software tools, or the best payroll software platforms.

3. Staffology Payroll by IRIS: Best for seasonal businesses

Staffology HR and payroll (1)

The Staffology self-service portal helps part-time employees or those working odd hours understand their payslip.

Suitable if:
  • You want to integrate with all types of HR software, including accounting software and time attendance software
  • You want to be provided with educational resources on payroll compliance
  • You want dedication to protecting employee data (Staffology is on the CIPP Payroll Assurance Scheme)
Not suitable if:
  • You have fewer than five staff members (it might not make the most sense in terms of cost)
  • You want to carry out background checks on employees through the platform
  • You want to carry out sophisticated data analysis
Key features

  • Automated reminders and checklists can be set up using the Workflow tool
  • Performance Appraisals feature can be used to manage training programmes and create a development plan
  • Employee holiday tracker allows your staff to manage their time off with a self-service booking system

Who is Staffology best suited to?

Staffology is best suited for seasonal companies like landscapers or tourist-oriented companies because its pricing structure, based on payslips created each month, benefits businesses with fluctuating team sizes.

Staffology’s pricing is based on the number of payslips created each month, and the cost per payslip gets cheaper the more employees you add. Staffology’s unique pricing structure is what makes it great for seasonal firms with rapid staff turnover. 

What I like about Staffology

  • Onboarding: unlike our top-rated brand, MHR, Staffology boasts advanced onboarding and support features. This includes a 24/7 chatbot and a live training course so that you can train staff members to use the platform easily, even if they’re lacking tech experience.
  • Visibility: like MHR, Rippling, and Moorepay, Staffology also has a mobile app that lets employees access payslips via a self-service portal. This means employees can view pay information, such as how many tips they’ve earned, and other important updates at any time – great if they’re working odd shift patterns.

Reasons to avoid Staffology

Staffology is not ideal for complex data visualisation or analysis. Our researchers were unable to design a report that shows the differences between an upcoming payroll and the previous one (known as a changes report) or build custom reports.

How much does Staffology cost?

Businesses pay:

  • £39 per month for up to 19 payslips
  • £1.95 per payslip, per month, in addition to the £39 base fee, for 20 to 50 payslips
  • If you process more than 50 payslips, you’ll need to contact the Staffology team for a quote

This low per-employee cost is a real benefit if you want to avoid paying for inactive employees during the off-season. That said, due to the fact that Staffology costs £39 per month minimum, it may be cheaper for teams with fewer than five employees to invest in a cheaper choice like Rippling.

4. Moorepay: Best for marketing and sales businesses

Moorepay HR and Payroll

The Moorepay mobile app lets employees view their payslips, personal data, and other pay information on-the-go.

Suitable if:
  • You want reassurance that all your data is stored in the UK
  • You want a mobile app where employees can view payslips easily
  • You want to be able to access educational resources which are available in-platform, to explain tax laws and changes
Not suitable if:
  • You want a transparent pricing model
  • You want 24/7 customer support
  • You want live training to help with onboarding
Key features

  • Predictive analytics to analyse cost impact of new hires or pay increases
  • Automatic data collection so you won’t have to worry about last-minute edits
  • 80 ready-made charts to track everything from gender pay gap to training costs

Who is Moorepay best suited to?

I’d recommend payroll goliath Moorepay as a strong HR and payroll management integrated system for sales and marketing teams. Its exceptional reporting capabilities are ideal for linking staff performance to remuneration.

These types of businesses need reports that can track and analyse the complexities of employees on a salary, hourly wages, and commission. Moorepay’s custom Report Designer Tool lets SMEs report on bonuses, overtime pay, and labour costs associated with specific projects.

What I like about Moorepay

  • Real-time dashboards: Moorepay gives users access to real-time dashboards so you can get an instant breakdown of your workforce each day, such as how many staff members are absent. Managers can then respond accordingly if absenteeism seems high.
  • Easy recruitment: Moorepay has a dedicated recruitment module which provides smart features to streamline your hiring process, like automated interview scheduling and an interactive candidate database.

Reasons to avoid Moorepay

Moorepay does not offer live training to help new users get to grips with the software. Businesses might find themselves hit with a lengthy implementation process as employees must train themselves using Moorepay’s pre-recorded webinars and tutorials.

What does Moorepay cost?

Moorepay doesn’t have a set pricing structure, but they’ll be able to provide you with a custom quote best suited to your business.

Get Free Quotes From HR and Payroll Software Providers Do you currently use HR and payroll software? Get quotes to start comparing costs

5. ADP UK: Best for managing and paying freelancers

ADP Payroll

We like that the ADP dashboard displays both weekly payroll information and a personal to-do list for time-poor managers.

Suitable if:
  • You want the reassurance that your provider meets international security standards (ADP is ISO/IEC 27001 certified)
  • You want a wide array of integrations, including open AI for custom builds
  • You want to manage HR and Payroll functions from a centralised dashboard
Not suitable if:
  • You want transparent pricing
  • You want a provider that is CIPP Payroll Assurance Accredited (instead look at Moorepay, IRIS, and MHR)
  • You're a microbusiness (there's a minimum of 25 users)
Key features

  • International payroll for paying workers in over 140 countries
  • AI notifications to nudge time-poor managers about payroll and HR tasks
  • Educational resources on payroll tax laws across the globe
  • Mobile app for employees to access payslip updates from any location

Who is ADP best suited to?

While ADP is predominantly a tool for big business (including Dell and Amazon), the software does boast some niche features that make it ideal for small companies employing a global network of freelancers.

ADP UK requires a minimum of 25 users to access the platform, which I would say makes it most suitable for companies with a large network of self-employed workers.

What I like about ADP

  • Training: you’ll likely be stretched for time if you’re managing a large network of freelancers. ADP’s library of live and pre-recorded training materials help users get a handle on using the software’s advanced features like open AI and custom report building.
  • Time tracking: ADP Real Time is a time and attendance tracker that’s accessible on any device. Even if team members are digital nomads working poolside in Spain they’ll be able to accurately record their work hours for simplified timesheets and pay calculations.

Reasons to avoid ADP

The only report that ADP cannot generate is a changes report (a way to track spending changes between payroll runs). Businesses can use the ADP custom report builder as a workaround for this issue, however.

ADP also has no email support option, and help is only available via live chat and phone during business hours. In the event of a system error, organisations may struggle to resolve the issue swiftly.

How much does ADP cost?

ADP provides bespoke pricing to its clients, rather than set pricing. It will be able to provide you with a quote that is tailored towards your company’s needs.

Gizem Sultan Kartalcik is an HR specialist at Transkriptor with a Masters in Human Resources Management from Northeastern University:

My experience using ADP:

I had the opportunity to use ADP UK during a project that required managing both HR and payroll functions across different teams. One of the most helpful features was the centralised dashboard, which made it easy to keep track of employee data, time off, and payment schedules without switching between tools. It saved time and helped reduce manual errors.

Gizem Sultan Kartalcik

How to choose an integrated HR and payroll software system

Because of how big the payroll and HR software market is, it’s always a good idea to have a list of criteria you can use to evaluate each provider. That way you won’t end up with a product that complicates – rather than simplifies – your HR and payroll processes.

To determine our list of the top software, I worked with an independent research team to examine each supplier in detail and judge how well they met the below criteria. I’d recommend using these factors to examine how suitable a software platform may be for you.

  • Onboarding: new software can sometimes be tricky to get your head around. You should look for providers that offer learning materials during setup, such as live training and tutorials.
  • User support: explore the resources available to help you understand complex payroll processes, like the available support channels (such as phone, email, and live chat).
  • Security: your sensitive information needs to be well looked after. Look for software providers with strong security features such as ISO 27001 certification and data encryption, and find out where your data will be stored.
  • Customisation: you should look for software that can be tailored to your business’s specific needs, from making payslip amendments to building custom reports.
  • Scalability: your business will grow and change over time. Look for software that can accommodate your evolving needs. For example, investigate how easy and expensive it is to add new employees.
  • Employee experience: keep an eye out for self-service tools, like mobile apps, that your staff can use to reduce admin time for managers.
  • Automatic updates: the HR and Payroll landscape is constantly evolving. A host of new laws is expected to be introduced by the Employment Rights Bill in 2026 and 2027, so you should select a system that automatically updates itself to stay compliant with changes in government legislation.

What to avoid in HR and payroll software

1. No customisation: I cannot stress enough how difficult last-minute revisions to payroll (such as bonuses, leave, or overtime pay) can make things for finance teams. I always advise SMEs to look for a system with customisation features, such as the option to build bespoke reports. It’s a bit more complicated, but open AI provision will also let you link existing software using custom integrations to ensure data is shared between your arsenal of business tools.

2. Data risk: protecting employee data is hugely important for ensuring that the workforce keeps faith with the company. Every payroll software brand should have two of the below at the very least:

  • Encrypted data storage
  • ISO 27001 certification 
  • CIPP accreditation 
  • Data stored at a UK-based centre 
  • Clean history of data breaches in the last two years

3. Poor scalability: switching to a new software provider is a huge hassle, but it may be necessary if your team is growing quickly. Our research team looks for scalable pricing tiers, or per employee billing, when finding the best payroll systems, as this will let users hire more staff without instantly blowing their budget. 

4. Bad user experience: it’s very frustrating when employees don’t immediately take to a new platform. Businesses can make things easier for staff by investing in a platform with ready-made tutorials and training materials, or live training sessions. Responsive customer support teams, with at least two different contact channels, can also help to address common challenges. 

New and incoming HR and payroll laws for 2026

The landscape of HR and payroll is constantly evolving, with new laws and regulations introduced regularly. Staying informed about the latest developments is crucial for HR professionals to ensure compliance and avoid costly penalties.

The Employment Rights Bill (ERB), a package of employment law reforms first announced in 2024, is expected to come into effect in 2026 and 2027.

Here’s a need-to-know summary of the bill for employers in 2026, based on the current government roadmap:

Law changes taking effect in April 2026:

  • Employers with over 250 employees will need to publish equality action plans. This will initially be on a voluntary basis, but will become mandatory in 2027.
  • The ERB plans to remove any length of service agreement for parental and paternity leave.
  • Statutory sick pay is due to become payable from the first day of sickness, and payable for the first three qualifying days of sickness. There are also plans to remove the lower earnings limit.

Law changes taking effect in October 2026:

  • Tighter restrictions on ‘fire and rehire’: the government plans to amend the law on unfair dismissal.
  • New penalty for failing to meet collective consultation requirements for redundancies: there are plans to double the maximum protective award pay.
  • Stronger legislation to prevent sexual harassment in the workplace is due to be introduced, and in addition to this, employers will be liable if their employees are harassed by third parties.
  • Employers will obligated to notify their employees that they have a right to join a trade union.
  • Stronger regulations around tipping are due to be introduced, requiring employers to consult with a trade union (or an elected representative) prior to producing a written version of their tips policy.

Law changes that were introduced in 2025

2025 saw a number of key changes to HR and payroll laws, including:

  1. The National Living wage increased from £11.44 to £12.21 per hour. The National Minimum Wage for 18- to 21-year-olds is now £10 per hour, and for 16- to 17-year-olds it’s now £7.55 per hour.
  2. Employers’ National Insurance Contribution (NICs) increase: the rate for secondary Class 1 NICs increased from from 13.8% to 15%. The Secondary Threshold for employers to pay NICs has been lowered from £9,100 to £5,000. The employment allowance has also been raised from £5,000 to £10,500.
  3. Sick pay reform: workers on low wages in the UK will now either receive 80% of their average weekly earnings, or the new Statutory Sick Pay rate of £118.75 per week. Statutory Maternity Pay, Statutory Paternity Pay, Parental Bereavement Pay, and Statutory Shared Parental Leave Pay has been increased from £184.03 to £187.18.
  4. Redundancy pay: workers who were made redundant on or after 6 April 2025 now have their weekly pay capped at £719, and the maximum amount of statutory redundancy pay has been increased to £21,570.
  5. Neonatal care leave: parents of babies that are in neonatal care could now be eligible for a day-one right to an additional 12 weeks of leave and pay, on top of the standard parental leave entitlement.

Law changes that were introduced in 2024

2024 also saw a number of major employment law changes that affected how HR and payroll teams operate:

  1. Flexible Working Bill: workers can now request flexible work arrangements from day one of employment. If you are using HR and payroll software that integrates with employee benefit software (such as MHR iTrent), you can easily track each request.
  2. New Carer’s Leave Regulations mean that all employees with caring responsibilities can now take one week of unpaid leave a year. Rippling’s leave features can help business owners to budget for temporary replacements or overtime costs in this period.
  3. The Paternity Leave (Amendment) Regulations 2024 permits anyone on paternity leave (and pay) to split their two weeks’ entitlement into two separate one-week blocks.
  4. Employment (Allocation of Tips) Act: as of October 2024, 100% of tips will need to be passed on to workers. MHR, Moorepay, and Staffology all have a mobile app that lets employees view payslips and bonuses via a transparent self-service portal.

In summary

To round things up, the employment landscape in the UK is constantly changing and evolving, so you’ll need HR and payroll software that can keep up with the times.

That’s why our choice for the best integrated HR and payroll software system for small businesses is MHR, with its iTrent payroll and HR software. Using its built-in learning management software, you can upskill your employees with its library of 30,000+ online modules, which is ideal for companies that need to keep up in fast-paced industries. iTrent’s unique salary budgeting feature also stands out as a valuable tool, alongside its mobile workforce management feature.

Read next: what is HR?

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Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

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