Best Payroll Software for Small Business 2024 in UK

Welcome to our guide on the best payroll software for small businesses in the UK in 2024! As a small business owner, you understand the importance of efficient and accurate payroll management. Thankfully, there are affordable payroll software options available that can simplify this process for you.

In our research, we have identified the top payroll software solutions for small businesses in the UK. These software options offer a range of features and pricing plans to suit different business needs. Whether you’re looking for comprehensive accounting tools, extra customer support, or flexible payment plans, we have the right recommendation for you.

So, let’s dive into the best payroll software options for small businesses in the UK in 2024.

Payroll Software for Small Business in UK

Sage Payroll: Best for Small Businesses Wanting a Comprehensive Suite of Accounting Tools

Sage Payroll is a cloud-based payroll software that offers a comprehensive suite of accounting tools, making it the ideal choice for small businesses seeking efficient payroll management. With its user-friendly interface and advanced features, Sage Payroll simplifies the payroll process and ensures accurate calculations.

One of the main advantages of Sage Payroll is its cloud-based nature, allowing businesses to access their payroll data anytime, anywhere. This makes it incredibly convenient for small businesses with remote teams or multiple locations.

The automated payroll solutions provided by Sage Payroll automate time-consuming tasks, such as calculating taxes and generating pay slips. By streamlining these processes, small businesses can save valuable time and allocate their resources towards more important aspects of their operations.

Sage Payroll is also HMRC compliant, meaning that it meets all the necessary requirements set by the UK tax authority. This ensures that businesses can confidently manage their payroll without the risk of non-compliance and potential penalties.

In addition to its payroll functionalities, Sage Payroll integrates seamlessly with other business admin tools, such as accounting and HR software. This integration allows for smooth data flow between different systems, saving businesses the hassle of manual data entry and reducing the chances of errors.

Furthermore, Sage Payroll provides 24/7 expert support to assist businesses with any issues or questions they might have. This ensures that businesses have reliable assistance whenever they need it, minimizing disruptions in their payroll processes.

sage payroll

Overall, Sage Payroll is the best choice for small businesses looking for a comprehensive suite of accounting tools to streamline their payroll management. Its cloud-based nature, automated features, HMRC compliance, and integration capabilities make it an essential tool for small businesses in managing their payroll efficiently.

Moorepay: Best for SMEs Needing Extra Customer Support and a Thorough Onboarding Process

Moorepay is a reputable payroll software solution designed to cater to the unique needs of SMEs. What sets Moorepay apart is its commitment to providing extra customer support and a thorough onboarding process, ensuring that small businesses have the guidance they need when implementing the software.

With Moorepay’s cloud-based payroll solution, small businesses can enjoy the convenience and flexibility of managing their HR and payroll processes online. This cloud-based approach allows for easy access to payroll information from anywhere, at any time, making it a suitable choice for businesses with remote or distributed teams.

Moreover, Moorepay’s payroll software is designed to integrate seamlessly with other HR and payroll management software, providing a comprehensive solution for small businesses. This integration minimizes the need for manual data entry and increases efficiency, saving valuable time that can be better spent on other important business tasks.

One of the key strengths of Moorepay lies in its exceptional customer support. The Moorepay team is dedicated to assisting small businesses every step of the way, offering guidance during the implementation process and continued support afterward. Whether you have questions about software features or need assistance troubleshooting an issue, Moorepay’s support team is readily available to provide you with the assistance you need.

When it comes to onboarding, Moorepay takes a thorough approach. They understand that implementing a new payroll system can be daunting, especially for small businesses with limited resources. That’s why Moorepay offers a detailed onboarding process, ensuring that you and your team are fully equipped to utilize the software effectively. The onboarding process includes hands-on training, resources, and tools to help you navigate the system with confidence.

Key Features of Moorepay’s Small Business Payroll System:

  • Cloud-based payroll solution for convenient access from anywhere
  • Integration capabilities with other HR and payroll management software
  • Extra customer support to assist with any queries or issues
  • Thorough onboarding process for a smooth implementation
  • Automated calculations to minimize errors and save time

With Moorepay’s small business payroll system, you can streamline your payroll processes, ensure compliance with HMRC regulations, and focus on growing your business. The combination of comprehensive features, reliable customer support, and a thorough onboarding process makes Moorepay an excellent choice for SMEs seeking a robust and user-friendly payroll software solution.

ADP iHCM: Best for Teams with Complex Payroll Requirements, like Hospitality

A key player in the payroll software market, ADP iHCM offers tailored solutions for teams with complex payroll requirements, especially those in the hospitality industry. With its advanced features, including payroll automation software and comprehensive payroll management software, ADP iHCM helps businesses tackle the unique challenges associated with the evolving workforce in hospitality.

ADP iHCM focuses on streamlining payroll processes, saving valuable time and resources for businesses. Its automated payroll solutions efficiently handle complex calculations, ensuring accurate and timely payment disbursements for employees in the hospitality sector.

One of the standout features of ADP iHCM is its ability to track employee hours, which is particularly crucial in industries like hospitality where employees work varying shifts and require precise time management. This feature eliminates manual processes and reduces the risk of errors, leading to enhanced efficiency and cost savings.

ADP iHCM also offers robust bonus management capabilities, allowing businesses to effectively manage and reward their workforce in the hospitality sector. By automating bonus calculations and ensuring accurate distribution, ADP iHCM simplifies the bonus management process, bringing efficiency and transparency to businesses.

Key Features of ADP iHCM for the Hospitality Industry:

  • Payroll automation software for efficient and accurate payroll processing
  • Comprehensive payroll management software to handle unique hospitality payroll requirements
  • Advanced time tracking features for precise employee hour management
  • Bonus management capabilities for streamlined bonus calculations and distribution
  • Integrated reporting and analytics for data-driven decision-making

Why Choose ADP iHCM for Your Hospitality Business?

“ADP iHCM is the perfect payroll management software for hospitality businesses that demand accuracy, efficiency, and compliance. With its advanced features and industry-specific functionalities, ADP iHCM simplifies complex payroll processes, allowing businesses to focus on delivering exceptional guest experiences.”

payroll automation software

In conclusion, ADP iHCM stands as the top choice for teams facing complex payroll requirements in the hospitality industry. Its payroll automation software and comprehensive payroll management capabilities streamline payroll processes, ensuring accuracy, efficiency, and compliance. By leveraging ADP iHCM, businesses in the hospitality sector can focus on what matters most—providing exceptional service to their guests.

Clear Books: Best for Micro Businesses That Want Flexible Payment Plans

If you’re a micro business looking for an affordable payroll software solution, Clear Books is the answer. Designed specifically for small businesses, Clear Books offers flexible payment plans to cater to your budget constraints while providing all the necessary tools for efficient payroll management.

With Clear Books, you can streamline your payroll process and ensure accurate and timely payment to your employees. The software offers features such as automated calculations, employee self-service portals, and secure data storage to simplify your payroll tasks.

Get the flexibility you need with Clear Books:

  • Choose from a variety of payment plans to find the perfect fit for your micro business
  • Effortlessly calculate salaries, deductions, and taxes with automated calculations
  • Empower your employees with self-service portals for accessing payslips and tax information
  • Safely store and protect your payroll data in secure cloud servers

Clear Books understands the challenges that micro businesses face. By offering flexible payment plans, they ensure that even the smallest businesses can access reliable and affordable payroll tools.

“Clear Books has been a game-changer for my micro business. The flexible payment plans allowed us to easily integrate payroll management into our budget, and the software itself is straightforward and user-friendly.”

With Clear Books, you can focus on growing your micro business while leaving the payroll management to a trusted software solution. Take control of your payroll today and experience the benefits of Clear Books.

Clear Books Pricing Plans

Pricing Plan Features Cost
  • Automated calculations
  • Employee self-service portals
  • HMRC compliance
  • All features in Basic
  • Time tracking
  • Expense management
  • All features in Standard
  • Comprehensive reporting
  • Integration with accounting software

Clear Books logo

Xero: Best for Small Businesses Wanting to Save Time by Automating Payroll Processes

When it comes to small businesses in the UK, time and efficiency are crucial factors for success. That’s where Xero comes in. Xero is a leading payroll software solution that focuses on automating payroll processes, allowing small businesses to streamline their operations and save valuable time.

One of the standout features of Xero is its automated calculations. With Xero, small businesses can say goodbye to manual calculations and tedious paperwork. The software automatically calculates deductions, taxes, and other payroll components, ensuring accuracy and eliminating the risk of errors.

In addition to automated calculations, Xero offers an employee self-service feature. This allows employees to access and manage their payroll information, such as pay stubs and tax forms, directly through a secure online portal. This empowers employees and reduces administrative tasks for the HR team.

Xero also prides itself on its integration capabilities. The software seamlessly integrates with other popular business accounting software, providing a comprehensive ecosystem for small businesses. This integration ensures that payroll data seamlessly flows into the accounting system, eliminating the need for manual data entry and improving overall accuracy.

For small businesses just starting out and looking for an affordable solution, Xero offers a free payroll software option. This allows small businesses to benefit from Xero’s automated payroll solutions without any upfront costs. It’s a great opportunity for small businesses to experience the benefits of payroll automation without breaking the bank.

Overall, Xero is the ideal payroll software solution for small businesses in the UK who want to save time and streamline operations. With its automated payroll processes, employee self-service feature, and integration capabilities, Xero offers small businesses the tools they need to efficiently manage their payroll tasks and focus on growing their business.


In today’s fast-paced business world, having an efficient and accurate payroll system is crucial for small businesses. With the wide range of payroll software options available, small business owners in the UK can find the perfect solution to meet their unique needs.

These software solutions, such as Sage Payroll, Moorepay, ADP iHCM, Clear Books, and Xero, offer a variety of features and pricing plans to cater to different business sizes and industries.

For small businesses looking for a comprehensive suite of accounting tools, Sage Payroll provides a cloud-based solution with automated payroll calculations and HMRC compliance.

Businesses that need extra customer support and a thorough onboarding process can turn to Moorepay, while ADP iHCM specializes in handling complex payroll requirements for industries like hospitality.

Micro businesses can benefit from Clear Books, which offers flexible payment plans and affordable payroll tools. And for small businesses looking to save time by automating their payroll processes, Xero provides automated payroll solutions and free payroll software options.

Alternatively, small businesses may choose to outsource their payroll management to specialized payroll service providers. This allows for added convenience and expertise, ensuring compliance with HMRC regulations and freeing up valuable time for business owners.

By utilizing payroll software or outsourcing services, small businesses can streamline their payroll processes and achieve greater efficiency and accuracy in managing their payroll. This enables them to focus on the growth and success of their business without worrying about payroll-related issues.

With the right payroll system in place, small businesses can ensure smooth payroll operations and devote more time to what they do best – running and growing their business.

Why is Moorepay recommended for SMEs?

Moorepay provides extra customer support and a thorough onboarding process, ensuring businesses have the guidance they need when implementing the software.

Is ADP iHCM suitable for teams with complex payroll requirements?

Yes, ADP iHCM is best suited for teams with complex payroll requirements, such as those in the hospitality industry. It offers payroll automation and comprehensive payroll management software.

What makes Clear Books a good choice for micro businesses?

Clear Books offers flexible payment plans to accommodate the budget constraints of small businesses, making it an affordable choice for payroll management.

Why is Xero recommended for saving time by automating payroll processes?

Xero focuses on automating payroll processes, offering features such as automated calculations, employee self-service, and integration with other business accounting software.

Is there a free payroll software option for small businesses in the UK?

Yes, Xero offers a free payroll software option for small businesses in the UK, providing an affordable solution for those just starting out.Should small businesses consider outsourcing their payroll management?Small businesses may consider outsourcing their payroll management to specialized payroll services for added convenience and expertise.

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