1. BrightPay

BrightPay is one of the most popular payroll software solutions in the UK for small businesses.

Key Features:

• Fully HMRC-recognised RTI (Real Time Information) compliant

• Supports auto-enrolment pension schemes

• Unlimited employees and companies

• One-off pricing (no monthly subscriptions)

• GDPR-friendly

Pricing:
Starts at £139/year for a single employer.

Pros:
✅ Easy to use
✅ No hidden costs
✅ Excellent customer support

Cons:
❌ No cloud-based version (unless you add BrightPay Connect)

2. QuickBooks Payroll

QuickBooks Payroll offers a simple, all-in-one accounting and payroll system perfect for startups.

Key Features:

• Full integration with QuickBooks Accounting

• Automated pension submissions

• Real-time HMRC reporting

• Employee self-service portal

Pricing:
From £4/month + £1/employee (often bundled with QuickBooks Online promotions).

Pros:
✅ Seamless accounting and payroll connection
✅ Good mobile access
✅ Regular software updates

Cons:
❌ Can be costly as team size grows

3. Sage Payroll

Sage has been a trusted name in business software for decades.

Key Features:

• HMRC-recognised and RTI-ready

• Auto-enrolment compliance

• Online payslips and P60s

• Integrates with Sage Accounting

• GDPR-compliant security features

Pricing:
Starts at around £7 + VAT/month (for up to 5 employees).

Pros:
✅ Scalable as your business grows
✅ Easy setup wizard
✅ Strong support network

Cons:
❌ Slightly complex for absolute beginners

4. Moneysoft Payroll Manager

Moneysoft Payroll Manager is ideal for very small businesses and accountants.

Key Features:

• Highly affordable

• Handles multiple companies and directors

• Full RTI support

• Includes CIS (Construction Industry Scheme) features

Pricing:
£75 + VAT per year (for up to 50 employees).

Pros:
✅ Great value for money
✅ Detailed reporting
✅ Reliable desktop application

Cons:
❌ No cloud version available

5. Gusto (UK Version Coming)

Although Gusto has dominated the US payroll market, they are planning a UK-specific launch in 2025.

Expected Features:

• Fully cloud-based

• Automated tax filings

• Contractor and freelancer support

• Intuitive dashboard

Pros:
✅ User-friendly experience
✅ Advanced integrations (Zapier, Xero, QuickBooks)

Cons:
❌ Launching later in 2025 (not available at the start of the year)

How to Choose the Right Payroll Software

When selecting payroll software, small businesses should consider:

• Employee size — Some tools charge per employee.

• HMRC compliance — Must meet RTI and pension auto-enrolment rules.

• Integration needs — Sync with your accounting, HR, and banking systems.

• Cloud vs Desktop — Cloud gives flexibility; desktop can be cheaper.

• Customer Support — Essential for dealing with tax and payment issues.

Final Thoughts

Choosing the right payroll software in 2025 can save UK small businesses time, money, and headaches. Whether you prefer BrightPay’s simple one-off pricing, QuickBooks’ all-in-one solution, or Moneysoft’s affordability, there’s a tool to match your needs.

Keep compliance, employee satisfaction, and long-term scalability in mind — and your business will grow with confidence.