Best online payroll software for UK small businesses Find the ideal cloud based payroll software for your business with this in-depth review of the best providers for 2026. Written by Emily Clark Updated on 12 June 2026 About Us We are a team of writers, experimenters and researchers providing you with the best advice with zero bias or partiality. 1 of 3 Staffology by IRIS: Best software overall Compare Quotes 2 of 3 Moorepay: Request a free demo today Visit Moorepay 3 of 3 Compare payroll deals to find the best option Compare Quotes Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. IRIS Staffology is the best online payroll software for UK small businesses, based on our comprehensive analysis of cloud-based platforms, thanks to its native CIS functionalities and holiday pay software.Payroll can be a challenging process for SMEs to get to grips with. Ever-changing tax laws and complex regulations make staying compliant a daunting task for HR and payroll teams. Luckily, online HR and payroll software can help you streamline your payroll processes and minimise risk on the go. Key takeaways Staffology by IRIS is our top choice for SMEs, but you should always compare options before making a final decision.The best software will depend on your unique needs. For example, if you’re short on time, look for a system that’s easy to implement, like ADP.The cost of online payroll depends on your chosen provider, company size, and additional features, but can cost from £5 to £121+ per month.You can get online payroll software for free, but this often comes with a lack of support and user limitations.Consider the crucial factors like cost, scalability, features, and support. Tools like automatic RTI submissions will be essential, while a free trial will be helpful to judge a platform against your needs and budget. How we test online payroll software At Startups, we compare and assess leading payroll platforms so small businesses can find the best fit for their needs.We tested online software based on the following criteria: complexity & structural capability (25%), training & onboarding (20%), pricing, scalability & contract transparency (15%), ease of use (15%), data flexibility (10%), compliance & regulatory authority (10%) and End-user accessibility (5%).You can find a more detailed explanation of our full review process at the end of the article. 0 out of 0 backward forward Provider Best for Cost HMRC compliant FEATURED PROVIDER Employment Hero Staffology by IRIS Moorepay BrightPay Cloud Sage Payroll OneAdvanced ADP iHCM MHR iTrent Not yet assessed Construction firms High-turnover sectors In-house SME managers Micro-businesses Multi-location businesses Businesses growing internationally Non-profits and charities Offers tiered pricing starting with Lite Plan – £12 per employee per month £43 per month (base fee) Provides personalised quotes after assessing business needs Varies based on employee headcount From £10 per month Provides personalised quotes after assessing business needs Provides personalised quotes after assessing business needs Provides personalised quotes after assessing business needs We last updated this article on 12 June 2026 All the pricing and information in this article was verified as accurate on 12/06/2026. 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. 1. IRIS Staffology: Best for construction firmsCost: £43 per month (base fee)Free trial: 14 daysLocation: Slough, UKStaffology by IRIS is the best option for construction firms, as its built-in Construction Industry Scheme (CIS) can automatically verify subcontractors directly with HMRC, calculate the correct tax deductions, and submit monthly CIS returns without the need for third-party add-ons.For companies managing subcontractors in multiple locations, Staffology supports all worker types through its native holiday pay software, which automatically calculates and tracks variable holiday accruals based on the exact hours imported into the platform each month. This ensures any irregular or seasonal contractors receive accurate compensation without manual calculation.However, as Staffology is designed specifically for the UK market, it doesn’t support international compliance. For businesses hiring overseas, ADP iHCM would be a better choice. What Staffology does well Seamlessly connects payroll data with internal systems, project management tools, and accounting software Automatically calculates net figures and sends Full Payment Submissions (FPS) to HMRC Runs background audits before finalising a pay run What Staffology could improve Support primarily comes from self-serve training videos, document libraries, and email networks Doesn't provide a dedicated "payroll changes report" Its built-in recruitment features are fairly limited and lack more advanced tools (like multi-job board posting) How much does IRIS Staffology cost?Pricing for IRIS Staffology starts at £43 per month for up to 19 payslips.Businesses processing between 20 and 50 payslips will have to pay the £43 base fee, plus £2.15 per each additional payslip more.Companies with more than 50 payslips will need to contact Staffology directly for custom pricing. 2. Moorepay: Best for high-turnover sectorsCost: Quote-based (not available publicly)Free trial: NoLocation: Manchester, UKMoorepay is the best choice for high-turnover businesses, such as hospitality and healthcare firms, as it can handle fast-changing workforces and frequent payroll updates.Moorepay’s Payrun Restore feature allows businesses to roll back a payroll run to a previous stage if something goes wrong (such as incorrect data being entered or wrong calculations), which is something that requires a highly technical correction process with software like MHR iTrent.It also offers an Absence Management engine that tracks different working schedules along with the core payroll system. For businesses handling zero-hour employees on top of regular staff, this tool calculates key pay elements (like average pay and statutory sick pay) to reduce manual effort and the risk of compliance breaches that come from miscalculated zero-hour holiday pay. What Moorepay does well Moorepay is fully CIPP PAS (Payroll Assurance Scheme) accredited and recognised by HMRC Provides core payroll, expenses, and holiday tracking under one cloud-based portal Its customer support includes a 24/7 professional HR and legal helpline Where Moorepay could improve Its quote-based pricing means buyers can't benchmark upfront expenses against standard cloud alternatives Not suitable for micro-businesses or early-stage businesses that only need a basic or low-cost payroll Built specifically for UK payroll and doesn't support international setups How much does Moorepay cost?Moorepay does not publish upfront costs on its website; instead, it will provide customers with a bespoke quote.However, for businesses looking for standalone Human Capital Management (HCM) or HRIS tracking (holidays, sickness, recruitment), pricing can start from as little as £1.90 per month, per user. 3. BrightPay Cloud: Best for in-house SME managersCost: Varies based on the number of active employeesFree trial: 60 daysLocation: Duleek, IrelandBrightPay Cloud is ideal for in-house SME managers, such as business owners and HR managers, as it allows a fully compliant payroll cycle without being a specialist or expert.BrightPay has a direct API connection to the Modulr payment platform, allowing in-house managers to pay employees and HMRC directly from the payroll screen in real-time. This eliminates the manual process of exporting BACS files, logging into a corporate bank, and waiting three days for funds to clear.For businesses with rapid staff turnover and high seasonal hiring periods, BrightPay Cloud’s API integration with major providers like NEST and Smart Pension can automate workplace pension tasks by automatically submitting enrolment data, sending required notices, and tracking opt-outs without manual input. Even for employees who leave after a short period, the system records the exit date and updates the pension provider automatically. What BrightPay Cloud does well Its AI assistant "Oscar" can talk with new hires over WhatsApp to obtain P45s, bank details, and National Insurance information Provides an ongoing library of free live webinars, regulatory walkthroughs, and accredited training modules Automatically checks payroll data in real-time and enrols employees once they meet pension wage thresholds Where BrightPay Cloud could improve Its headcount maximum is 300 employees (including leavers) Limited custom layouts, advanced reporting filters, and detailed employee analytics compared to competitors like Moorepay Relies heavily on its own ecosystem and supported accounting software platforms How much does BrightPay Cloud cost?Following BrightPay Cloud’s discontinuation of its Windows desktop platform in April 2026, pricing is now based on the highest number of active employers and employees during a billing period, including new hires or leavers during that time.There are two payment options to choose from:Annual advance payment: you pay an upfront 12-month contract based on your anticipated headcountMonthly subscription: billed via direct debit on the 4th of the following month (or the next working day if this falls on a weekend) 4. Sage Payroll: Best for micro-businessesCost: From £10 per monthFree trial: 30 daysLocation: Newcastle upon Tyne, UKSage Payroll is the top choice for micro-businesses because it simplifies payroll management with an easy step-by-step process that makes running payroll fast, accurate, and stress-free, even for first-time business owners.Sage’s “4-Step Pay Run” guides first-time business owners through four simple screens to complete their weekly or monthly payroll. This includes confirming the date of pay, entering any absences (like sick leave or maternity/paternity leave), making any pay adjustments (such as overtime), and submitting RTI/FPS directly to HMRC.Firms that work with external accountants or local bookkeepers can also benefit from shared access to Sage’s live cloud portal, where accounting partners can securely log in from anywhere to correct any tracking issues, perform compliance reviews, and audit financial records in real-time. What Sage Payroll does well Handles all statutory calculations with no accounting knowledge needed Automatically retrieves and applies updated employee tax codes and student loan notices If you use Sage Accounting, journals sync automatically with your bookkeeping software as soon as a pay run is finished Where Sage Payroll could improve The maximum headcount is 150 employees, whereas OneAdvanced doesn't have a fixed maximum Users have reported mixed experiences with wait times and issue resolution Some users report difficulties in making adjustments to a processed pay run How much does Sage Payroll cost?Prices for Sage Payroll start at £10 per month + VAT for teams of fewer than five, but three tiers are available that grant access to more advanced features. You can add up to 100 employees in total to each plan.Payroll Essentials: £10 p/m for five employees (+£2 p/m for additional employees)Payroll Standard: £20 p/m for five employees (+£4 p/m for additional employees)Payroll Premium: £30 p/m for five employees (+£6 p/m for additional employees)While Sage Payroll is cost-effective for small teams, the price increases significantly on the Premium tier as your workforce grows.For example, running payroll for 50 employees on Sage Premium costs £300 per month (£3,600 per year), while the same team size on BrightPay could cost roughly £228 per year. 5. OneAdvanced: Best for multi-location businessesCost: Quote-based (not publicly available)Free trial: NoLocation: Birmingham, UKOneAdvanced is best for multi-location businesses, allowing organisations to manage staffing, payroll, shift scheduling, and labour costs across multiple sites from a single system.For example, in industries like retail, care homes, and hospitality, where managers may need to borrow staff from other locations to cover sudden shortages, OneAdvanced supports multiple employment contracts and different shift pay rates under a single employee profile by processing a single tax calculation for the worker while automatically splitting and assigning labour costs to the correct site budgets.OneAdvanced’s rostering and automated scheduling features have drag-and-drop functionality for managers to reassign shifts between locations. Once completed, it automatically updates the system and notifies employees of the change through the mobile app. What OneAdvanced does well Offers in-person training pipelines and a support network of CIPP accredited experts Automatically translates real-time attendance, split-site work, and night/weekend wage tiers into accurate pay checks Can run complex gross-to-net payroll runs for 10,000 employees in under 20 seconds Where OneAdvanced could improve Does not offer international payroll processing Many users report a steep learning curve when using the software Some customer reviews indicate frustration with delayed response times How much does OneAdvanced cost?OneAdvanced does not reveal its pricing and instead will provide customers with a bespoke quote.That said, you’ll only have to pay for the individual modules your business needs, which you can either purchase individually or bundle together for a lower per employee, per month (PEPM) rate. These modules include:Payroll engine: handles core gross-to-net rates, direct HMRC RTI filings, and automated back-pay calculations.Core HRIS suite: tracks employee record databases, absences, and holidays.Time & Attendance (T&A): supports localised roster wallcharts, clocking configurations, and biometric tracking.Performance & Talent/LMS: adds AI-assisted feedback loops, engagement surveys, and training modules. 6. ADP iHCM: Best for businesses with international employeesCost: Quote-based (not publicly available)Free trial: NoLocation: Staines-upon-Thames, UKADP iHCM is the best option for businesses with overseas employees, offering integrated payroll tools that simplify managing employees across different countries.The platform’s Employee Self Service (ESS) interface supports 35 different languages, letting any overseas worker log into the portal to see local tax breakdowns, holiday balances, and country-compliant payslips in their own language.Additionally, it offers built-in tools to track international payments. Businesses can view competitive foreign exchange (FC) rates and payment statuses directly from the payroll screen, making it easy to manage cross-border payroll without switching between different systems. What ADP iHCM does well Includes payroll, core HR, talent acquisition, and expense tracking on a single database CIPP accredited and has an ISO/IEC 27001 certification Employees can independently manage HR tasks from their smartphones Where ADP iHCM could improve Users report additional hidden fees for custom reports, specialised training, and certain updates Does not offer 24/7 customer support Steep learning curve, whereas OneAdvanced offers hands-on training, video courses, and access to payroll experts How much does ADP iHCM cost?ADP iHCM does not reveal its pricing and instead will provide customers with a bespoke quote. Depending on your business size, it will provide you with a quote tailored to your needs. 7. MHR (iTrent): Best for non-profits and charitiesCost: Quote-based (not publicly available)Free trial: A free demo is availableLocation: Ruddington, UKMHR iTrent is the best match for non-profit and charity organisations because it combines payroll, HR, and volunteer management within a single platform.MHR iTrent allows organisations to create a volunteer database alongside their core HR records. This allows them to track availability, manage mandatory training certifications, and process expense reimbursements without placing volunteers on the formal payroll.It also features advanced cost allocation and labour distribution tools that let organisations split an employee’s payroll costs across different projects or funding sources. For example, if a worker divides their time between a National Lottery-funded project and council-funded care work, iTrent can separate payroll costs, pension contributions, and tax records into the correct budgets and provide audit-ready financial reports. What MHR iTrent does well Any changes to an employee profile or tax data updates instantly across the system Processes payroll in real-time, allowing finance teams to see every transaction as it happens Its "iTrent Shield" module layers user-behaviour analytics (UBA) on top of multi-factor authentication to protect sensitive data Where MHR iTrent could improve Jargon or complex language in technical manuals compared to OneAdvanced's strong support network Does not have 24/7 live telephone support Updating information requires moving through several different sections instead of through a single dashboard How much does MHR iTrent cost?MHR iTrent does not reveal its pricing and instead will provide customers with a bespoke quote.However, for the core iTrent Standard HRM and Payroll modules, the cost per employee, per month (PEPM) decreases as headcount increases. Here’s an example of how it works:Headcount TierCore HRM (PEPM)Payroll Add-on (PEPM)Total Basic Core (PEPM)1-400 employees£2.26£1.17£3.43401-1,000 employees£1.80£1.15£2.951,001-2,000 employees£1.78£1.14£2.922,001-8,000 employees£1.14£0.73£1.878,000+ employees£0.74£0.47£1.21 How much does online payroll software cost?The overall cost of online payroll software depends on the provider you choose, as well as factors like company size and any additional features.However, on average, businesses can expect to pay:£5-£12 per month for 1 to 10 employees£13-£60 per month for 11 to 50 employees£61-£120 per month for 50 to 100 employees£121+ per month for 100+ employees What is the best free payroll software for UK small businesses?Yes, free online payroll software options exist for UK small businesses. Our top three picks are:Shape Payroll – best for side hustlersPrimo Payroll – best for free customer supportEnrol Pay – best for retail and hospitality businessesWhat are the limitations of free payroll software?However, there are drawbacks to free payroll software. Watch out for:User limitations – a maximum limit of employees on free software is commonLack of support – free software typically comes with non-existent or very little supportNon-compliant software – free payroll software can be open source and might not adhere to HMRC regulations What are the pros and cons of using online payroll software?Looking into the advantages and disadvantages of online payroll is important in making informed decisions for your business. The pros and cons are as follows: Pros of online payroll: Streamlines and automates payroll processes, reducing admin time and paper filing Comes with in-depth reporting functionality – great for cash forecasting Free trials offered by some providers give you the flexibility to try before you buy Contracts are shorter (typically month-to-month) than with outsourced payroll Cons of online payroll: You might have to install it as part of a wider package (e.g. an accounting system) Onboarding issues can arise more frequently than with a fully managed service Support is not as dedicated and tailored as it is with a managed payroll service We recommend that businesses think carefully about which option is best for them: online payroll software or outsourcing to a third-party payroll service provider. Here are some scenarios in which we would or would not recommend online payroll software: We'd recommend online payroll software if: You are tech-savvy or have a dedicated HR or finance team to manage the software You have simple needs, i.e. straightforward pay structures You are willing to take on basic tasks like data entry You want to save money (payroll service costs can be expensive) We wouldn't recommend online payroll software if: You have limited resources and/or complex payroll needs You feel daunted by payroll and need dedicated, personalised support You have high turnover (onboarding and offboarding staff can be time-consuming) We’d suggest that if your company has over 50 employees or more, it would be time to consider engaging the help of a professional by outsourcing your payroll rather than using payroll software – though you’ll need to be aware of the payroll service prices that are charged. How we evaluate and test online payroll softwareOur methodology is based on the analysis conducted and data collected by our research team.In our latest research cycle, we judged each online platform based on the following criteria:Complexity & structural capability (25%): how much automation the software can perform, such as multi-contract management, different sick pay rules, and automatically calculating back-pay updates.Training & onboarding (20%): access to UK-based project managers, tailored live training, and support with cleaning and migrating data.Pricing, scalability & contract transparency (15%): how predictable the pricing is (without hidden add-ons), as well as factors like contract options, and data export costs if you choose to offboard later.Ease of use (15%): the design of the primary workflow interfaces, the step-by-step pay run process, and the performance speed of the calculations.Data flexibility (10%): how easily the platform integrates with existing business systems (such as accounting software and CRM platforms).Compliance & regulatory authority (10%): direct technical background links to HMRC, CIPP Payroll Assurance Scheme (PAS) accreditations, and internal fraud defences.End-user accessibility (5%): the availability of native iOS and Android smartphone applications, mobile self-service functions, and direct multi-currency global funding pipelines.Summary of the best online payroll toolsIRIS Staffology is the best online payroll tool, thanks to its impressive cloud-based features and ability to support all employee types.However, for businesses with more complex needs and a larger number of staff (roughly over 50 employees), we’d recommend outsourcing your HR and Payroll needs to a specialist. Jump back up to any of our reviews: Compare the best online payroll software 1. IRIS Staffology 2. Moorepay 3. BrightPay Cloud 4. Sage Payroll 5. OneAdvanced 6. ADP iHCM 7. MHR (iTrent) How much does online payroll software cost? What is the best free payroll software for UK small businesses? What are the pros and cons of using online payroll software? How we evaluate and test online payroll software Frequently Asked Questions How do online payroll platforms handle the 2026 SSP changes? Most online payroll platforms have updated their tax systems to automate the new statutory sick pay (SSP) changes under the Employment Rights Act 2025, but you should verify that your chosen provider handles these calculations properly to avoid compliance issues or manual payroll adjustments. What happens to my employee data if I switch provider? When moving plans or switching vendors, ensure your new provider offers a clear data migration timeline (ideally under 4 weeks) and transfers your Year-to-Date (YTD) figures, historic tax codes, and employee records. You should also ensure you have a digital backup of holiday pay and annual leave records. Can regular small business payroll services manage international remote workers? Most standard UK payroll services are designed for domestic operations and cannot manage wages for overseas workers. If you hire employees based abroad, look specifically for platforms offering Employer of Record (EOR) frameworks or specialised international compliance tools (like MHR iTrent or TopSource Worldwide). Does online payroll software handle auto-enrolment workplace pensions? Yes. The majority of top-tier platforms have built-in auto-enrolment features that assess staff eligibility every pay run, calculate employer and employee contributions, and integrate with major pension providers like NEST and NOW: Pensions. Do I need an accountant or payroll professional to use these platforms? No. Modern cloud platforms like Sage Payroll are designed for small business owners who might not have a financial background. However, having an accountant review your setup during the initial onboarding phase can help prevent early data-entry errors. Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Tags News and Features payroll Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.