7 best payroll service providers for 2025

Payroll isn’t just about cutting cheques. With rising costs and complex regulations, it’s a minefield that can derail even the most well-intentioned businesses with endless paperwork, compliance headaches, and potential errors.

Outsourcing your in-house payroll processes to a third-party provider can help to keep your payroll confusion low, and confidence high. With years of experience in the HR and payroll industry, our team has carefully evaluated the top payroll service providers to bring you unbiased reviews and expert insights.

Our results find IRIS is best overall. But another provider might be better for your industry and goals. And in an uncertain economy, SMEs want to get the best value for money. Click below to learn more about the top payroll service providers:

For a handy price comparison, we recommend taking a moment to get 🔍personalised payroll service pricing quotes for your business. This service is free, takes just minutes, and involves zero obligations.

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BEST ALL ROUND
Provider IRIS	Provider PayEscape	Provider Moorepay	Provider Advanced Business	Provider MHR	Provider ADP UK	Provider TopSource Worldwide
Best for Small construction businesses	Best for Seasonal businesses	Best for Growing teams upgrading to an advanced payroll tool	Best for Professional service teams with employees paid on commission	Best for Remote teams, like software developers	Best for Small businesses wanting the flexibility to change payroll quickly	Best for Small businesses operating globally
Cost Provides personalised quotes after assessing business needs	Cost Provides personalised quotes after assessing business needs	Cost Provides personalised quotes after assessing business needs	Cost Provides personalised quotes after assessing business needs	Cost Provides personalised quotes after assessing business needs	Cost Provides personalised quotes after assessing business needs	Cost Provides personalised quotes after assessing business needs
Fully managed?	Fully managed?	Fully managed?	Fully managed?	Fully managed?	Fully managed?	Fully managed?
Get Quotes	Get Quotes	Visit Moorepay	Get Quotes	Get Quotes	Get Quotes	Get Quotes

Have you thought about payroll software?

Outsourcing payroll to a service provider is a solid option. But payroll service prices can be high. Using software enables you to manage everything in-house, but with a powerful virtual payroll assistant that can automate processes including payroll runs, tax deductions, and HMRC reporting.

If you’re interested in payroll software, we recommend Rippling. Our researchers liked its low cost of £7 per user, per month and helpful compliance assistance which will keep companies abreast of legislation changes for speedy and accurate payroll.

1. IRIS: Best for construction businesses

💰 Pricing from:	doesn't publish set price plans – instead provides personalised quotes after assessing business needs

IRIS is one of the UK’s longest-running private payroll companies and our research finds it is the best vendor choice for small construction businesses.

Construction subcontractors have to send a varying amount of tax to HMRC each month (depending on their tax status) which can be confusing for teams with limited resources and minimal payroll expertise. Amongst IRIS’ range of sector-specialist offerings, our researchers liked the Construction Industry Scheme (CIS), a smart module that ensures sub-contractors are paid correctly and on time, with capabilities like:

• Adding UTR (Unique Taxpayer Reference) numbers to payroll
• Contacting HMRC directly to verify a subcontractor’s tax status
• Providing the compulsory CIS monthly tax returns to HMRC online
• Splitting material and labour costs for different invoices

We like how the IRIS Payroll user dashboard gave us all the information we needed about annual, monthly, or weekly employee pay – including time left until pay day

What does IRIS do well?

Trust: IRIS is an accredited CIPP Payroll Assurance Scheme (PAS) vendor and all of its data is encrypted and stored in the UK, whereas PayEscape stores its data overseas in the US. Based on our knowledge of payroll security standards, our research team is wholly confident companies can rely on the brand to offer a secure service that adheres to HMRC data regulations.

HR services: for small teams that want to combine payroll and HR software, our researchers have noted that IRIS has both, so managers won’t need to divide the data between two products.

Implementation: payroll is a specialist area which we know businesses often don’t have the time or resources to educate employees in. Recognising this dilemma, IRIS dishes out training on its software and tax changes to develop user knowledge – and give firms the option to move in-house in future.

Where does IRIS underperform?

Year-end reporting: submitting year-end reports to HMRC is one of the most stressful periods of payroll, with huge amounts of compliance, checks, and paperwork involved. Frustratingly, even though it’s an online payroll software, IRIS will not take care of final payment submissions (FPSs) for users, whereas a vendor like Moorepay will take care of this.

Customisation: IRIS doesn’t let businesses create custom reports; an issue for anyone wanting niche pay data like average pension contribution. During testing, we were able to import standard reports in the ‘Report Manager’ tab, however, bespoke reports are only purchasable on top of an IRIS software licence. Every other brand (except for TopSource) in this list includes the custom reports feature for no additional charge.

2. PayEscape: Best for seasonal firms

💰 Pricing from:	doesn't publish set price plans – instead provides personalised quotes after assessing business needs

PayEscape might not be as established as the likes of Moorepay, but the company is one of the fastest growing payroll providers in the UK. In large part, that’s due to its low cost. PayEscape has set flat-rate fees that make it easier for seasonal businesses like souvenir shops or a pool cleaning business.

Any business that can only operate at certain times of the year will know exactly how much they’re spending with PayEscape. We liked that its pricing tiers are set at a per employee basis, which makes it easier for plan for busy periods such as Christmas or school holidays. Other features for this niche audience include:

• Mobile app lets staff easily clock in and out, ensuring real-time shift tracking for accurate payroll calculations, even during peak seasons
• Accommodate varying schedules with the flexibility to generate payslips weekly or monthly, helping you to adapt to seasonal fluctuations
• Seasonal firms tend to operate offline, and PayEscape has a simple user-friendly interface that serves those with limited tech know-how

PayEscape users can use the brand’s cloud-based software, Webscape, to review their employee payments at any time

🪙 PayEscape pricing update: December 2024

In 2024, PayEscape’s pricing page went dark. Its pricing plans are now no longer published online. However, we know from previous analysis that PayEscape used to offer two plans:

• PayEscape Monthly: £53 base price + £3.20 per employee per month
• PayEscape Weekly: £15 base price + £1.32 per employee per week

What does PayEscape do well?

Pricing flexibility: while rivals like Moorepay and IRIS have minimum contract lengths of 12 months, PayEscape users will not be tied into an annual contract. Instead, companies are billed on a monthly rolling basis – which our analysts rate highly as a big comfort to firms that may be worried about their ability to keep up with payments in today’s economy.

Time management: PayEscape also offers Workforce Ready, a time and attendance module which empowers employees working changing shift patterns. Staff can clock in and out depending on their start/finish times and breaks. Plus, they can swap shifts between themselves using the self-service portal.

Where does PayEscape underperform?

Customer support: there are some fundamentals missing from the PayEscape platform, Webscape such as a designated account manager (often one of the key motivators behind outsourcing payroll) which TopSource includes as part of your contract. Our research team did spot that business owners can get assistance via live chat or over the phone, however.

HR services: PayEscape is less adept at managing people teams. Aside from payroll, it has no benefits management service (for delivering and tracking staff perks) or learning management service (for upskilling workers). We doubt shops and cafes, which usually employ workers on a part-term or zero hours basis, will find this a huge concern. But offices with full-time employees might consider a vendor with more sophisticated HR integration.

3. Moorepay: Best for growing teams

💰 Pricing from:	doesn't publish set price plans – instead provides personalised quotes after assessing business needs

Moorepay is a goliath in the payroll service industry and is currently used to pay one in six of the UK’s working population. Because of its simplified onboarding process, we think it is best for scaling SMEs upgrading to a more sophisticated tool to support their growth.

Many startups just go with a cheap and cheerful payroll vendor. Once established, however, they often feel they need something more advanced; and Moorepay is the ideal option. The brand has a strong reputation as a capable tool for larger teams and complex pay processing. Plus, for those concerned about an arduous payroll switchover, Moorepay’s “simple switch guarantee” gives clients:

• Support from an implementation consultant throughout the switch
• Regular checks from experts on data migration to ensure compliance
• Managed emergency payroll service (to complete a pay run in 48 hours)
• Webinars and training guides for wider team onboarding

Moorepay customers can easily add new employees into its HMRC-compliant software for Moorepay to take care of their payslips

What does Moorepay do well?

Reporting features: bigger teams often need more complicated data tools to keep everything organised. Moorepay supplies multiple payroll report types like a register (list of employee contacts) and changes report (record of payroll changes month-by-month). Clients can also build DIY reports, unlike when using IRIS.

People management: when making new hires, HR functions need to grow alongside payroll. Moorepay’s self-service portal lets managers and staff see:

• Current and past payslip data
• Year-to-date tax information and P60 forms
• Leave requests, balances, and approval status
• Key documents like company policies or tax forms

Support features: new signees are given access to Moorepay’s implementation team, and an account manager who handles any legislative or policy changes that might impact the business. In terms of a helpdesk, customers can contact Moorepay via live chat and over the phone.

Where does Moorepay underperform?

Suitability for micro teams: We don’t recommend Moorepay for teams with under three employees. Its ‘extra-mile’ features like monitoring overtime and expenses in real-time are impressive. But we’re certain they won’t be worth the larger price tag for micro teams – particularly not those trying to keep costs down. PayEscape is a more affordable option if you’re just looking to carry out core payroll functions.

Live training: while Moorepay does provide a specialist to assist with onboarding, its training features are not live which could slow down troubleshooting and make it harder for teams to get to grips with its software. Our researchers did find a wide library of pre-recorded webinars, video tutorials, and guides that walk clients through the system, however.

4. OneAdvanced: Best for professional service teams

Like IRIS, OneAdvanced provides a range of payroll services for businesses to choose from including managed and in-house options. We think it is the best option for those based in the professional service sectors, such as sales teams or marketing agencies.

Many sales professionals and some marketing roles rely heavily on commissions or quotas on top of base salaries. They might also often have performance-based bonuses tied to achieving specific goals. OneAdvanced’s extensive HR features and customisable data reports make processing complex payslips and tracking employee or project team performance much simpler via:

• Payroll budget tracking at a department level
• Dashboards for visualising and understanding data at-a-glance
• Reports downloadable as Excel or csv files
• Leave entitlement and request monitoring
• Super speed processing to calculate complex payments in 20 seconds

OneAdvanced gives businesses multiple custom forms for each employee to simplify even the most complex payslips

What does OneAdvanced do well?

People management: OneAdvanced offers a suite of other HR and recruitment services for a one-stop shop to manage every aspect of pay, performance, and training. That includes recruitment (with applicant tracking for managing job adverts, interviews, and selection) and Learning Management Software (LMS) to develop training courses and materials that match a company’s unique development pathways.

Reporting features: OneAdvanced’s extensive reporting tools let businesses create custom dashboards and databases measuring everything from hours worked to tax withholdings, plus any deductions or contributions made for commission – helpful for managers analysing performance at an individual level.

Where does OneAdvanced underperform?

Software integrations: our researchers were disappointed to see that OneAdvanced does not have an open API, which will make it challenging to integrate with certain third-party tools. It also lacks ready-made integrations including accounting software, which can be useful for generating reports, budgeting, and financial reconciliation. ADP, IRIS, and MHR offer all of these integrations which may make them better options if you have a large suite of business tools.

Mobile app: OneAdvanced does not provide employees with a mobile app. This a real issue with transparency (employees are unable to easily view their payslips and check for updates on rewards or bonuses) and might lead to managers seeing an uplift in time-consuming admin and pay-related queries. Every other provider in this list has a mobile app available making this a significant drawback for OneAdvanced.

5. MHR: Best for companies that are fully-remote

💰 Pricing from:	doesn't publish set price plans – instead provides personalised quotes after assessing business needs

MHR has been operating for over 35 years in the HR and payroll industry, and is a specialist in the field of talent management, with 1,000+ companies relying on its services. Its impressive business disruption prevention features are superb for fully remote firms based in multiple countries or regions.

For dispersed workforces, we know a payroll issue is especially chaotic. Remote companies need a robust system to ensure employees are still paid correctly and on time in the event of a power outage or staff absence. MHR’s Emergency Payroll Support feature will come to the rescue and aim to fix the issue, free up time for finance teams, and reduce business risk. It encompasses:

• Replacement account or payroll manager role
• Data input and recovery
• Suggestions on how to improve processes from an accredited expert
• Problem diagnosis and resolution (where possible)

MHR iTrent offers a comprehensive dashboard to measure data and analytics, giving users complete oversight of all employee pay information including international hires

What does MHR do well?

Security: MHR’s security features are impressive; we uncovered that all of its data is protected by the iTrent Shield (an additional security layer that necessitates multi-factor authentication in order for employees to access information) and stored in what it describes as a “multi-million-pound data centre” in the UK. Our research team also found no record of data breaches in the past two years.

Software integrations: Remote companies rely heavily on business software to run their operations. MHR has partnered with tens of third-party apps so clients can link the MHR payroll app with certain accounting or LMS tools to function as one system. Tech teams or those with software knowledge can also use MHR’s Open AI (a coding language that lets businesses integrate the app with any existing business tech).

Where does MHR underperform?

Compliance: MHR does not give clients advice on labour laws, tax laws, and payroll legislation changes, putting the onus of these checks on in-house payroll teams. This is a big drawback and makes it unsuitable for some firms – particularly those in regulated sectors like healthcare or finance – which have a greater need to stay compliant with HMRC changes. These types of companies should choose any other provider in this list as they all offer payroll compliance.

Customer support: MHR does have numerous implementation courses and demos available to show how clients can tailor its software to their unique needs. However, the vendor’s support team is decidedly hands off when it comes to customer support and it does not offer email support or live training.

6. ADP UK: Best for employing freelancers

💰 Pricing from:	doesn't publish set price plans – instead provides personalised quotes after assessing business needs

ADP is one of the UK’s largest payroll specialists, boasting over 920,000 customers – but it is only available for a minimum of 25 employees. As a result, we think it is best for teams employing a large number of freelancers. Amongst the specific advantages for businesses employing large teams of sub-contractors, ADP has:

• Automation tools to send timely payments through the platform
• Tools to manage contacts, projects, and timesheets (if applicable)
• Customisable and scalable pricing paid per employee, per month

The ADP dashboard displays weekly payroll information, including a manager to-do list, so the business has complete oversight of all completed and upcoming payroll tasks

What does ADP do well?

Supporting growth: ADP is a solid choice for established firms looking to become the ‘M’ in SME. It offers various services outside of payroll including HR, recruitment, and time and attendance tracking – which makes it a very cost-efficient option for companies looking to minimise spend on different outsourcing services. MHR and TopSource automatically add these functions into contracts which can make their software more complex and expensive to use. ADP gives users the freedom to add them into the plan as and when the business decides.

Time monitoring: timesheets are extra important when working with freelancers as they will typically bill by the hour. ADP Real Time is a cloud-based time and attendance solution included with ADP that allows staff to input their work hours themselves but requires them to also record their attendance at work or online. That way, both parties can be certain the final payslip is an accurate reflection of the total hours worked.

Where does ADP underperform?

Budget tracking: with ADP, there’s no option to build a Changes Report (a dashboard that monitors the differences between new and past payroll). Other rivals including PayEscape are also lacking this function, but we’ve chosen to highlight this as a key drawback for ADP because if a companyis hiring a lot of freelancers then keeping an eye on how your outsourcing costs are increasing/decreasing will be especially vital.

7. TopSource Worldwide: Best for hiring internationally

💰 Pricing from:	doesn't publish set price plans – instead provides personalised quotes after assessing business needs

TopSource Worldwide is a London-based provider supplying managed payroll to businesses. Inarguably, it stands out for its international payroll features. As more firms hire from abroad to combat skills shortages, TopSource is ideal for SMEs expanding globally with a team of experts available to help teams understand salary and tax requirements in over 150 countries.

Other providers, including IRIS, do have internationally-compliant management plans but make users fork out a lot for these premium options. TopSource includes these as an add-on to an existing plan. Companies get:

• A dedicated account manager who knows about local tax laws
• An in-country expert who can help to avoid tax penalties
• Cost calculator to work out international employee salaries
• International payroll (not offered by Moorepay, IRIS, or OneAdvanced)

The TopSource website makes clear its USP of servicing companies with an international employee base

What does TopSource do well?

HR services: TopSource has a global EOR (Employer of Record) recruitment service that can oversee onboarding, benefits, tax, and insurance for hiring foreign talent. In this, all of the essentials are covered including HMRC registration, pension calculations, and end-of-year processing. That said, TopSource does not permit companies to build custom databases – an issue if the manager wants to combine both HR and payroll data into one report.

Fast setup: hiring from abroad often means delays and uncertainties as hiring managers navigate procedures like Right to Work checks. Handily, once these are done, switching to a managed payroll provider like TopSource is super quick. Our research team confirmed turnaround times can be as little as four weeks due to TopSource’s streamlined onboarding methods. 

Where does TopSource underperform?

Training: TopSource does not offer coaching on how to use its platform via written instruction or live feed. It does offer a dedicated account manager who will be able to offer some advice with onboarding, but their advice is unlikely to be as comprehensive and could impact how well teams can understand and navigate the software. We also could not find a TopSource knowledge base or any learning materials on tax laws, which means managers need to rely heavily on the account manager to update payroll and ensure companies stay compliant.

What types of businesses are payroll services suitable for?

• Companies with fewer than 25 employees. Outsourcing payroll to a service provider is a smart option if the business hasn’t got the resources to employ an in-house accounting and HR team yet
• Growing teams: teams that are scaling quickly will likely have their hands full with business goals and face a bigger risk that they will make mistakes during payroll
• Businesses with international employees: depending on the provider (some don’t permit international payments) a payroll provider can handle the complexities of paying employees in different locations, with different tax rules
• Businesses with limited payroll expertise: in-house payroll requires staying up-to-date on complex tax regulations and employment laws. Payroll providers specialise in this area so teams can avoid hiring a finance expert

How much does it cost to outsource payroll in the UK?

It depends on the provider, as most payroll services only offer bespoke quotes rather than set pricing plans. This is because the demands of your employee pay can vary massively depending on industry, team size, and benefit structure.

As a rough estimate, SMEs should expect to pay around £6 per employee, per month as a payroll fee. So, if you have 15 employees, it will cost you £90 per month.

Buying guide: how to choose a payroll service provider

Besides the all-important price tag, what are the most crucial factors to investigate when you’re comparing payroll service providers?

The first thing to remember is that HMRC compliance is not negotiable when selecting a provider. Ensure your chosen service ticks this crucial box, reassuring you of their commitment to regulatory standards and your business’s compliance. Fortunately, all the providers we feature in this article are HMRC compliant, so there’s no worry there.

So, what else should you consider? Let’s explore:

1. Expertise

From working with small business owners for over 20 years we know how confusing payroll can be. Expertise matters, so look for providers with a proven track record in handling payroll needs and meeting set standards on compliance and security like CIPP and ISO:27001 accreditation.

2. Tax administration

Similarly, a proficient payroll service provider should navigate tax regulations effortlessly. They will stay abreast of tax law changes, minimising compliance risks. A good provider will have dedicated staff who constantly monitor these changes and ensure all payroll automations are submitted accurately and on time.

3. Data security

Security breaches can be catastrophic. Prioritise providers with robust data security measures. Because you won’t have oversight over where your employee data is stored if outsourcing payroll, it’s a good idea to appraise each provider to see that it protects sensitive information with encryption, secure servers, and stringent access controls.

4. Payroll reporting capabilities

Detailed and accurate reporting is the bedrock of effective payroll. Assess the reporting capabilities of the provider – customisable reports, real-time insights, and compliance reports should be part of their arsenal. This ensures you’re not just processing payroll but leveraging valuable data.

5. Employee experience

A payroll system isn’t just for administrators; it directly impacts your employees. Choose a provider that offers user-friendly interfaces and accessible employee portals to enhance employee satisfaction and reduce the administrative burden on your HR department.

6. Setup and training processes

Overall, the entire payroll software implementation process can range from 30 days to more than 3 months. That means a lot of time where company owners are distracted and unable to carry out core business activities. A provider should offer comprehensive training to your team, ensuring everyone is adept at using the system to speed up the setup process – the quicker the better – without compromising comprehensiveness.

7. Customer support options

Responsive customer support is invaluable if an issue arises that might prevent you paying your employees on time or with the right amount. Opt for providers with multiple support channels – email, phone, and live chat. Timely and effective support can be a lifesaver if you have a technical glitch.

8. Software integrations

Payroll is closely linked to other important aspects of running a business including accounting, HR, and recruitment. Assess the provider’s compatibility with the other software your business uses to build a comprehensive system where all data can be recorded, shared, and updated from one place. This will drastically save time and avoid the risk of data entry errors.

9. HR services

While it might be tempting to go with the cheapest payroll provider possible when you’re an SME, it’s best to think long term. Signing up with a provider with a wider range of HR services allows you to easily add on features like benefits administration, performance management, or applicant tracking systems (ATS) as your workforce grows.

Why should I invest in a payroll provider?

Outsourcing payroll is an easy way to save time and avoid stress during one of the most complicated aspects of managing a business: making employee pay submissions. During payroll, many business owners struggle to find the time to remain on top of:

• Administrative processes
• The regular changes in tax law and regulations overseen by HMRC
• The many and varied deductions and calculations related to an employee’s gross salary each week or month
• The data input associated with payslips and other documentation such as annual P60s

Payroll service providers can do all of the above much more efficiently and accurately than an in-house excel spreadsheet could ever hope to.

How we evaluate and test payroll services

Our researchers and writers are seasoned experts in the realm of payroll. We spend weeks researching providers and evaluating them against the criteria we set for the payroll service category, and update our findings twice a year to ensure they remain relevant and accurate for our audience.

In our latest research cycle, we also spoke to real-life business owners to ensure that our research factors were answering their biggest concerns about using a payroll service provider. They told us they were worried that outsourcing could cause issues with:

• Payroll knowledge – SMEs find it difficult to stay up-to-date on employment law, tax law, and industry legislation without an in-house team of accounting experts. We examined how each provider performs for payroll compliance, looking at factors such as industry certifications and help and support.
• Data protection – SMEs are rightly concerned about sensitive employee data being vulnerable to data leaks and cybersecurity threats. We judged each vendor based on their security credentials, data storage, and historical cyber attacks.
• Control – firms want to still be able to tailor the payroll process to their specific needs. We assessed how much control each customer is offered, looking at whether they can generate custom reports, view key payroll information, and build their own dashboards.
• Scalability – bsinesses want a long-lasting solution that can accommodate their growth trajectory, which is why we looked at the features offered by each provider to check they could support future business growth, such as HR functionality and benefits management.
• Employee adoption – people teams want to provide a smooth experience for employees. We also analysed each provider to assess their self-service portal, scoring them on how easily they allow users to view payslips, and whether there is a mobile app for on-the-go updates.

Next steps: get started with the best payroll service provider in the UK

Our experts have found that the best managed payroll service provider is IRIS. This reputable, established provider flaunts its vast experience with an exceptional payroll expertise that covers the majority of UK payment schemes.

As you’ll have noticed, all but one of the above providers have no clearly-defined pricing plans. Given that most SMEs will have a specific budget in mind for managed payroll, we think this is a significant drawback for research.

We decided to make things easier by building a simple 🔍online cost comparison tool. By partnering with some of the best payroll service providers including IRIS and Moorepay, we can give you exact quotes from multiple providers to compare at the same time so you’ll be able to see how they all compare in one handy place.

Simply provide us with a few basic details about your business needs to get started, and providers will be in touch with personalised quotes.