5 Best Payroll Services for Small Business: 2025 Guide

Paying your team should be one of the simplest parts of running a business. But for most small firms, it quickly becomes a source of stress.

Between HMRC deadlines, pension enrolment, variable hours, and compliance rules, payroll demands a level of precision most business owners simply don’t have time for. That’s why choosing the right payroll services for small business is one of the most important financial decisions you’ll make.

For UK employers, things get even more complex. Real Time Information (RTI) reporting, holiday pay, and statutory leave rules are non-negotiable, and mistakes can lead to penalties, delays, or frustrated staff.

The good news? Modern payroll services for small business UK operations are built to manage all of this automatically.

Today’s best providers do more than generate payslips. Many are fully cloud-based, offering automated tax filings, pension reporting, direct payments, and even basic HR features. Whether you need a simple calculator and submission tool or a complete online payroll service for small businesses with staff self-service, there’s a fit for your workflow and budget.

In this guide, we break down the top UK-friendly providers in 2025. You’ll see what each one does best, who it’s ideal for, how the pricing works, and whether HR functionality is included.

If you’ve been searching for trusted payroll and HR services for small businesses, this comparison will help you make the right decision, without the jargon.

📚 Guide to Payroll Software Integrations

Top 5 Payroll Services for Small Business: 2025 Comparison

Provider	Best For	Starting Price	Key Highlights
QuickBooks Payroll	QuickBooks users wanting built-in payroll	£10/month + £1.30 per employee	RTI, pensions, same-day payments, CIS support, syncs with QuickBooks
PayFit	UK SMEs needing payroll + basic HR	£25/month + £19 base fee	RTI, payslips, leave tracking, UK compliance, employee self-service portal
Moorepay	Firms wanting fully managed, compliance-led payroll	~£50/month for 10 employees	GDPR-safe payslips, auto-enrolment, HR modules, full-service option
HiBob	Tech-led teams preferring full automation	≈£95/month for up to 50 staff	Real-time HMRC sync, webhook API, zero manual calculation
Sage Payroll	Micro-businesses starting payroll from scratch	£10/month (up to 5 employees)	HMRC-recognised, basic and affordable, easy to scale

1. QuickBooks Payroll

Good fit

QuickBooks Payroll is one of the most plug-and-play payroll services for small business owners already using QuickBooks bookkeeping.

How it helps

QuickBooks Payroll automates key tasks like PAYE calculations, RTI submissions to HMRC, pension contributions, and payslip generation. It also supports same-day or next-day payments and handles CIS for subcontractors, making it ideal for construction and trade-based businesses.

Pricing insight

Core Payroll starts at £10/month base fee + £1.30 per paid employee/month (plus VAT). The optional Advanced plan adds features like timesheets and custom permissions.

Cost breakdown for a typical small firm

A five-person team pays about £16.50/month, all in, significantly cheaper than using a separate payroll platform, with no added reconciliation work between tools. It’s also free to try for 30 days, which helps reduce adoption risk.

2. PayFit

Good fit

UK-based small businesses with 5 to 100 employees that want a clean, automated payroll system with built-in tools for leave, expenses, and staff self-service, without hiring a full HR team.

How it helps

PayFit automates your payroll from payslip creation to RTI submissions, pension contributions, sick leave, and statutory parental pay. It also includes an employee portal for leave requests and expense tracking, helping you manage HR basics without extra software.

Pricing insight

Starts from £25/month + £19 base fee for the Light plan. The Standard plan, which includes more HR features, starts from £75/month.

Cost breakdown for a typical small firm

For a 5-person team, PayFit’s Light plan averages around £8 per employee/month. That covers payroll calculations, compliance, payslip generation, and HMRC filing a fair all-in-one price for companies moving off spreadsheets or manual bureaus.

3. Moorepay

Good fit

Small businesses with 10 to 50 employees that want payroll done-for-you, especially in regulated sectors like finance, healthcare, or education, where accuracy, audit trails, and legal compliance really matter.

How it helps

Moorepay offers both software and fully managed payroll options. It handles PAYE, RTI, pensions, holiday accruals, and GDPR-compliant payslip delivery, while also giving you the option to add HR tools like employee contracts, absence tracking, and performance logs all under one login.

Pricing insight

Cloud payroll starts from ~£50/month for 10 employees, or around £6 per employee/month if you opt for full outsourcing.

Small team pricing in real terms

At £6 per employee, a business with 15 staff would pay £90/month, typically less than hiring a part-time payroll assistant. You also gain peace of mind from knowing that filings, deadlines, and documentation are all handled without micromanagement.

4. Pento (Hi Bob)

Good fit

Small businesses with a digital-first mindset that want payroll to feel as smooth as the rest of their tech stack. HiBob is especially well-suited for startups, agencies, and product-led teams who prefer self-service platforms over outsourcing. If you’re looking for fast, API-driven payroll services for small business operations that don’t require hand-holding, HiBob fits the bill.

How it helps

HiBob fully automates payroll from pay calculation and tax deductions to RTI filing, pension contributions, and payslip generation. It syncs in real-time with HMRC and integrates cleanly with accounting tools like Xero and QuickBooks. Their open API and webhook support also make it possible to trigger payroll actions from within your own systems, ideal for tech-savvy businesses building custom workflows.

Pricing insight

While pricing is not always listed publicly, Cledara marketplace data shows that UK SMEs pay around £95/month for up to 50 employees, working out to less than £2 per employee/month when scaled.

Cost breakdown for a typical small firm

A team with 20 employees would pay approximately £4 per employee/month, including automation, compliance, and real-time submissions. That’s significantly lower than traditional bureaus, especially when you factor in time saved on approvals, spreadsheets, and manual calculations.

5. Sage Payroll

Good fit

Small UK businesses with up to five employees who need an easy-to-use payroll solution that can grow with them, and already use Sage accounting or want a platform that’s trusted and reliable.

How it helps

Sage Payroll automates PAYE, RTI filing, pensions, payslips, and statutory pay. The platform is cloud-based, HMRC-recognised, and includes a simple mobile-friendly interface for small teams. Because it integrates seamlessly with Sage Accounting, it keeps your financials in sync without extra work.

Pricing insight

Plans start from £10/month for up to 5 employees , placing it in the most affordable tier of UK payroll providers.

Cost breakdown for a small team

With a flat monthly cost, a firm paying exactly five employees will only spend £10/month total, making Sage Payroll one of the lowest-cost options that still handles full compliance and RTI filing.

Finexer (For Flexible Payroll Disbursements)

Finexer isn’t a traditional payroll platform; it’s what your payroll software hands off to when it’s time to pay people. Whether you calculate salaries using Xero, QuickBooks, or PayFit, Finexer takes over at the payment stage, letting you disburse funds instantly via Open Banking. For small teams that want faster payouts, fewer errors, and no BACS delays, Finexer upgrades the final mile of the payroll process without replacing your current setup.

How it works

• Instant payouts – Finexer uses Open Banking APIs to authorise and execute payments immediately, with a clear audit trail.
• Real-time account checks – Verify employee bank details on the spot; no more rejected payments.
• Plug-in model – Keep your existing payroll software to calculate gross-to-net; Finexer handles only the disbursement step.
• Optional income validation – Useful when onboarding new contractors or variable-hour staff.

Pricing at a glance

Finexer runs on usage-based pricing: no setup fees, no per-employee charge. You pay only for each successful payment or verification call, and volume discounts apply as your transaction count grows.

Cost in context for a small team

A business with ten employees that pays twice a month might spend less than typical Bacs fees overall, while gaining same-day settlement and automated receipts. Because there is no lock-in or base fee, you can scale payments up or down without wasting budget.

Choosing the Right Payroll Service for Your Business

Every small business handles payroll differently some want full-service support, others just need a simple tool that files on time. Whether you’re paying a few employees or managing a team of 50, the right solution depends on how much control you want, how complex your setup is, and how tightly you need payroll to fit into your existing systems.

Here’s a quick recap:

• QuickBooks Payroll is perfect if you’re already managing accounts in QuickBooks.
• PayFit brings payroll and HR together with a clean interface and built-in compliance.
• Moorepay is ideal if you’d rather hand off payroll and focus on your business.
• HiBob gives you speed, APIs, and real-time automation built for scale.
• Sage Payroll offers a reliable and cost-effective option for micro-businesses just starting out.

Each of these tools delivers reliable, UK-compliant payroll services for small business, but only one will feel like the right fit for your team, budget, and workflow. Use this guide to match your needs with the right provider and take one more thing off your plate this year.