Small businesses are increasingly turning to cloud-based solutions to manage their payroll efficiently and effectively. Cloud-based payroll software not only simplifies the payroll process but also ensures compliance with ever-changing tax laws and regulations.
Here, we explore seven of the best cloud-based payroll software options, tailored to meet the needs of small businesses in the UK.
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Connects & empowers 300k+ organisations across the world with a suite of powerful employment features. Automate as much of your payroll processes as you like by harnessing the power of a fully integrated HR and payroll platform.
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Best UK payroll software compared
1. Employment Hero
Connects & empowers 300k+ organisations across the world with a suite of powerful employment features. Automate as much of your payroll processes as you like by harnessing the power of a fully integrated HR and payroll platform.
Employment Hero offers a comprehensive cloud-based payroll and HR platform tailored to meet the needs of small to medium-sized UK businesses. The software is fully compliant with HMRC requirements, automates Real Time Information (RTI) submissions, and simplifies complex calculations such as PAYE, National Insurance, and pension contributions. Designed to reduce admin time and boost compliance, Employment Hero Payroll also integrates seamlessly with accounting platforms like Xero, QuickBooks, and MYOB. Employers and employees alike benefit from the self-service functionality, enabling access to payslips, leave management, and timesheets
Prices
Employment Hero Payroll offers tiered pricing depending on your business needs and number of employees. While specific costs aren’t publicly listed, packages typically start from around £3 per employee per month for payroll-only plans, with optional HR tools available as add-ons or bundled plans.
Best suited for?
Employment Hero is best suited for SMEs looking for an all-in-one platform that combines powerful payroll automation with optional HR support. It’s ideal for businesses aiming to simplify admin tasks, improve compliance, and increase employee engagement through a single digital platform. The flexibility to scale and customise makes it particularly attractive to growing businesses.
2. Cintra
Cintra is a trusted UK-based payroll and HR provider, known for delivering reliable and bespoke payroll solutions. Cintra’s payroll platform is designed to handle complex payroll requirements while ensuring full compliance with HMRC regulations. Key features include automated tax calculations, direct RTI submissions to HMRC, and support for pension scheme management. Additionally, Cintra offers robust reporting capabilities and integration options with various accounting and HR systems. Employees can use the self-service portal to access payslips, P60s, and manage their personal details, helping to streamline administrative processes.
Prices
Cintra operates on a tailored pricing model, meaning costs are customised based on the size of your business, the number of employees, and the specific features you need. While detailed pricing is not publicly available, Cintra provides a flexible structure suitable for SMEs and larger organisations, with the option to combine payroll and HR services for an all-in-one solution.
Best suited for?
Cintra Payroll is ideal for businesses seeking a personalised payroll service that can handle both standard and complex payroll needs. It’s particularly well-suited for medium to large enterprises that value compliance and require integration with existing accounting or HR systems. The employee self-service portal and pension management features make it an excellent choice for organisations looking to simplify payroll administration while improving employee access and engagement.
3. Moorepay
Moorepay is a leading provider of payroll and HR solutions in the UK, offering a robust and user-friendly system designed to simplify payroll processes for businesses of all sizes. Moorepay’s payroll platform ensures compliance with HMRC regulations, automates complex payroll calculations, and delivers Real Time Information (RTI) submissions directly to HMRC. Key features include advanced reporting tools, automated payslip distribution, and integration options with various accounting systems. Employees can access payslips, P60s, and submit leave requests via the employee self-service portal, streamlining workforce management.
Prices
Moorepay offers customised pricing based on your business size and requirements. While there isn’t a fixed price list publicly available, Moorepay typically structures its pricing to include payroll services for small and large employee bases, with added flexibility to bundle HR services for a comprehensive solution.
Best suited for?
Moorepay Payroll is ideal for small to medium-sized businesses (SMEs) and larger organisations looking for a dependable payroll provider with strong compliance and reporting capabilities. It’s particularly beneficial for businesses seeking a scalable solution that combines payroll with optional HR management tools. The employee self-service portal also makes it a great choice for organisations aiming to enhance employee engagement and reduce administrative burdens.
4. Sage Business Cloud Payroll
Sage has long been a staple in the accounting and payroll software industry. Sage Business Cloud Payroll is specifically designed for small to medium-sized businesses, offering scalability as your business grows. It features a simple step-by-step process for payroll processing and includes automatic updates to remain compliant with UK tax legislation. Sage also provides detailed reports to help manage payroll costs effectively, making it a popular choice for businesses seeking comprehensive payroll solutions.
Prices
Sage Business Cloud Payroll pricing starts from £7 per month for up to 5 employees, with the price increasing with more employees. This makes it a scalable option for growing businesses.
Best suited for?
Sage is suitable for businesses that need a robust payroll solution that can grow with their business. It’s ideal for those who also require detailed insights and reporting on payroll expenses and prefer a provider with a long-standing reputation in the market.
5. BrightPay
BrightPay is known for its versatility and user-friendly interface. It supports unlimited employees and employers, making it ideal for growing businesses. One of the standout features of BrightPay is its strong focus on security, with regular backups and encryption to protect sensitive data. The software includes functionalities for RTI submissions, automatic enrolment for pensions, and a bespoke module for managing furlough payments, which was particularly useful during the COVID-19 pandemic.
Prices
BrightPay’s pricing is based on the number of employees and the level of functionality required. The standard version starts at approximately £149 per year for up to three employees.
Best suited for?
BrightPay is best suited for small businesses that place high importance on security and data protection. It’s also ideal for those who need flexible payroll processing capabilities, such as handling different types of employee contracts and varying payment schedules.
6. Payroo
Payroo offers a straightforward, HMRC-recognised payroll solution that is well-suited for small businesses looking for a cost-effective option. It provides features such as RTI submissions, automatic pension contributions, and a self-service portal for employees. Payroo also stands out for its commitment to transparency, with no hidden fees and a clear pricing structure. Additionally, it offers a free tier, which can be particularly attractive for startups and very small businesses.
Prices
Payroo offers a free tier for companies with fewer than 10 employees, making it a highly affordable option. For more employees, pricing starts at £1 per employee per month.
Best suited for?
Payroo is particularly well-suited for startups and very small businesses that are looking for a straightforward, cost-effective payroll solution. It’s also ideal for companies that appreciate a pricing structure without hidden fees.
7. MyPAYE
MyPAYE is designed to make payroll simple and efficient for small businesses. It provides direct integration with HMRC, ensuring compliance with UK payroll regulations. Features include automated tax calculations, electronic payslip generation, and a comprehensive set of reporting tools. MyPAYE also offers a unique pricing model that scales with the number of employees, making it an economical choice for businesses looking to manage costs while maintaining a reliable payroll system.
Prices
MyPAYE pricing starts at around £1 per employee per month, with no setup fees, making it an economical choice for small businesses.
Best suited for?
MyPAYE is best suited for small businesses that want a straightforward and affordable payroll solution with direct HMRC integration. It’s ideal for those who prefer a pay-as-you-grow pricing model that scales with the number of employees.
FAQ – Small business payroll software
Payroll software automates the process of paying salaried, hourly, and contingent employees. It typically includes features to manage deductions, benefits, tax withholdings, and employee data. It also ensures compliance with employment laws and tax regulations.
Cloud-based payroll software offers several advantages for small businesses, including accessibility from any location, real-time data updates, and reduced need for in-house IT infrastructure. Additionally, it ensures data is backed up and secure, and often comes with regular updates to comply with the latest tax laws.
Most payroll software automatically calculates taxes required for each pay period for every employee, accounting for federal, state, and local taxes. It often includes features to file and pay taxes directly through the software, ensuring compliance and reducing the risk of errors.
Yes, many payroll software solutions can integrate with other business systems such as human resources management systems (HRMS), accounting software, and time tracking applications. This integration helps streamline various business processes, reducing manual data entry and the potential for errors.
When choosing payroll software, consider factors such as ease of use, cost, scalability, customer support, and specific features like tax filing, payment methods, and compliance management. Also, look for reviews and testimonials to gauge the software’s reliability and customer satisfaction.
Many payroll software providers offer scalable solutions that are suitable for very small businesses or startups. Some offer basic packages or free tiers that are cost-effective for smaller teams, making them ideal for businesses just starting out.
Cloud-based payroll software generally offers high levels of security, including data encryption, secure data centers, and regular security audits. It’s important to select a provider that follows best practices in security to protect sensitive payroll and employee data.
The cost can vary widely based on the number of employees, the complexity of the payroll needs, and the features required. Basic plans can start from as little as £1 per employee per month and can go up significantly with more advanced features and higher employee counts.
Implementation time can vary based on the complexity of the business’s payroll needs and the software itself. Simpler systems can be set up in a few hours, while more integrated solutions might take several weeks to fully configure and deploy.
Most reputable payroll software providers offer robust customer support, including online resources, live chat, phone support, and email help. Some may offer dedicated account managers for more personalised assistance.