By Anna Jordan on Small Business UK – Advice and Ideas for UK Small Businesses and SMEs
Choosing the right payroll software can not only save you money; it can also save you valuable time. It’s an important decision to get right, as otherwise you could find yourself wanting to switch provider not long after you’ve set up with one.
Key Takeaways
Best overall payroll software: Sage
Best free payroll software: Primo Payroll (Essentials Free Plus)
Best combined HR & Payroll software: Employment Hero
The best overall payroll software for UK small businesses in 2026 is Sage (£20/month) for up to 10 employees – its key features include CSI, payslips, auto-enrolment and RTI, without requiring any further software. If you are looking for free payroll software, Primo Payroll also supports up to 10 employees and is RTI compliant; however, the software includes paid ads from third parties.
What to Look For in Payroll Software
Check it is HMRC compatible – all the providers listed in this article are HMRC compatible
Auto-enrolment pension management
Simple dashboard
Integration with other software (accounting/ HR systems/ pension providers)
Number of employees supported
Ability to scale up
Cost
Trustpilot reviews
Check whether it is part of an existing ecosystem (e.g. only available with accounting/HR software)
HMRC compatible
Auto Enrolment
Price per employee, per month
Trustpilot