The 10 best payroll companies in the UK in 2025 for small businesses

Payroll management is an important part of running a small business. However, for many, it can be time-consuming and complicated. The average small business spends 2,5 per payroll run. This equates to approximately 30 hours a year. Payroll outsourcing to a reliable firm not only saves you time, but ensures that the payroll is compliant with all of the latest labour and tax laws. Businesses can avoid these complications by choosing the right payroll provider. They can then focus on their growth.

This article explores the top 10 payroll companies for small business in the UK in 2025. It will help you make an educated decision based on the needs of your company.

What are Payroll Services For Small Businesses?

Payroll services are a solution that businesses can use to distribute wages to their employees. These services include deducting taxes, processing payments and ensuring tax compliance. By outsourcing payroll, businesses can stay up to date with the latest tax laws and regulations. They also avoid penalties.

Why is payroll outsourcing important for small businesses?

Small businesses should consider outsourcing payroll because it can save them time and money, while allowing the owners to concentrate on their growth. It helps ensure compliance with labour and tax laws, reduces mistakes through the professional handling of calculations and provides secure data management for sensitive employee information.

Time and cost efficiency

By outsourcing payroll, business owners can focus on their growth and the day-to-day operation of their company without being distracted by the headache of managing payroll internally. Outsourcing payroll allows businesses to avoid the overhead costs associated with hiring a payroll team and investing in payroll software. You can then allocate your time and resources to more strategic initiatives, which will drive growth for your business.

Compliance

Payroll companies assist businesses in staying compliant with the ever-changing labour laws and tax regulations. These experts have a thorough understanding of the current legal requirements and will ensure that your payroll is processed in accordance with tax laws, wage laws, or benefit requirements. Outsourcing payroll allows small businesses to avoid costly penalties for non-compliance, and also prevents errors in employee classification or tax filing.

Error Reduction

Payroll professionals have been trained to deal with the complexity of payroll calculations and reports. Outsourcing reduces the chance of mistakes, such as incorrect tax filings, missed deductions or incorrect pay rates. Experts can help businesses reduce the risk of costly errors that may lead to employee dissatisfaction or fines.

The Security of Your Own Home

Payroll services provide secure data handling to ensure that sensitive information about employees, such as National Insurance Numbers, bank account information and salary information is protected. Outsourcing payroll to a reliable provider will ensure that your company complies with the data protection laws, and protects employee privacy. These providers protect your payroll data with encryption and advanced security features to prevent unauthorized access.

How to choose the best payroll service provider for your business?

The right payroll provider will depend on factors such as ease of use and transparency in pricing, responsive support and features like employee self-service and software integration. Make sure the provider meets your specific business needs and budget.

• Ease-of-Use: Select a platform which is simple to use, even by those with no accounting experience.
• Pricing Structure:Look transparent pricing that is aligned with your budget. Some providers charge by employee while others have flat rates.
• Customer Service: Choose providers that offer responsive customer support in the event of questions or issues.
• Features : Make sure the provider provides essential features such as tax filing, employee-self-service and integration with business software.

Comparison of Payroll Services Providers

It’s important to know what matters most to your business before comparing payroll providers. Understanding the strengths of each service provider can help you make an educated decision. Here is a comparison between the top UK payroll providers for small businesses by 2025.

1. Pay Check

Pay Check is a provider of payroll services that offers a fully-managed payroll service. It integrates seamlessly with your business’ operations. Pay Check is a specialist in making payroll processes easy, accurate, and compliant. Over 1,500 UK companies rely on Pay Check’s services. Pay Check offers bespoke solutions that are tailored to the needs of each client, and has dedicated payroll experts on hand for support.

• Features: Seamless data upload via Pay Check Portal. HMRC compliance. Pension auto-enrolment. BACS payment services.
• Sentiment Highly praised by users for its ease of use, protection from tax penalties, and personalized services. Advanced features are subject to additional fees.
• Best suited for: Small to medium-sized businesses who require a fully managed, tailored payroll service.

2. QuickBooks Payroll

QuickBooks Payroll is ideal for small business owners who already use QuickBooks for accounting. The seamless integration of QuickBooks with QuickBooks Payroll automates the payroll processing, and ensures compliance with tax regulations. It is user-friendly, and has a variety of features including automatic tax filing and protection from tax penalties.

• Features: Integration of QuickBooks accounting software. Automated tax filing. HMRC compliance.
• Sentiment Highly praised by users for its ease of use and protection from tax penalties, although some mention the additional charges for advanced features.
• Best suited for: Small business using QuickBooks as their accounting software

3. ADP

ADP is the global leader in human resource management and payroll. They provide comprehensive solutions to small and medium-sized businesses including automated payroll processing and tax filing.

Features: Global availability, comprehensive payroll services, tax filing and HR solutions.

Sentiment Known as a reliable and excellent customer service provider. Small businesses may find it expensive.

Best for Businesses seeking global payroll solutions or integrated HR services.

4. Sage Payroll

Sage Payroll has a reputation for being a reliable and trusted payroll solution. It is known for its robust compliance features and simplicity. This is the perfect solution for micro-businesses or small businesses who need an affordable and reliable payroll system. Sage’s features, such as automated tax calculations and pension administration, ensure that your business remains compliant.

• Features Automated payroll calculations, tax calculations and pension management.
• Sentiment Strong approval of reliability and compliance with minor complaints regarding pricing as employee numbers increase.
• Best suited for: Micro- and small-sized businesses that require reliable, simple payroll software.

5. Gusto

Gusto is a payroll and HR all-in one solution that’s popular with small businesses. It has features such as employee self-service and automated tax filings. It’s a great option for companies that require both HR and payroll functions. However, the pricing is a bit high for small teams.

• Features: Employee self-service features, automated tax filing, compliance.
• Sentiment Appreciated for its comprehensive approach even though it is expensive for small businesses
• Best for growing businesses who need payroll and HR services.

6. Moorepay

Moorepay, an award-winning provider of payroll services, offers automated processing and excellent customer service. This is a great solution for businesses with more employees or those who need more complex services. Moorepay’s focus on compliance, and ability to scale up with your business is what makes it so popular.

• Features to look out for: Mobile app, self service portal, automated payroll, strong customer support.
• Sentiment Highest rated for support and compliance, best suited to large businesses.
• Best For: Small Businesses Prioritizing Compliance and Scalability.

7.Paycor

Paycor provides modern HR and payroll solutions that are flexible and scalable. They offer tools to manage payroll, HR compliance, and workforce management.

Features to look for: Employee self-service, payroll processing, workforce management and HR compliance tools.

Sentiment Well regarded for its user friendly interface and scalability. Pricing may be higher for small businesses.

Best for growing businesses that are looking for payroll and HR solutions.

8. BrightPay

BrightPay is an easy-to-use cloud-based payroll system that’s ideal for small and medium businesses. It offers great value thanks to its easy-to-use interface and powerful reporting tools. It includes features like HMRC compliance and recognition, making it an excellent choice for small business.

• Features: HMRC Recognition, cloud-based reporting tools, affordable price.
• Sentiment Positive feedback for simplicity and value. Lacks advanced integration.
• Best suited for: Small business looking for cost-effective solutions for payroll.

9. PayEscape

PayEscape offers small businesses expert support and flexibility. PayEscape offers monthly flexible contracts and certified support to ensure that businesses stay compliant with HMRC rules. PayEscape offers onboarding support to help businesses get started quickly.

• Features: Flexible contract, CIPP certified support, HMRC compliant software, and onboarding assistance.
• Sentiment Customer service and flexibility are well-received, but HR features need to be added.
• Best suited for: Businesses that want flexibility and expert advice without long-term commitments.

10. MyPAYE

MyPAYE offers a low-cost payroll solution for micro- and startups. MyPAYE integrates with accounting software like QuickBooks and Xero to make it easier for small businesses to manage payroll.

• Features: Cloud-based, pay-as you-go pricing. Integrations with accounting software like QuickBooks and Xero.
• Sentiment Excellent for small businesses due to its low price, but not as robust for large payrolls.
• Best suited for: Microbusinesses and startups with simple payroll requirements.

What Are the Payroll Services Providers?

It’s important to know what matters most to your business before comparing payroll providers. Understanding the strengths of each service provider can help you make an educated decision. Here is a comparison between the top UK payroll providers for small businesses by 2025.

How to Choose the Right Payroll Service Provider

It is important to choose the right payroll service provider in order to run your business smoothly and remain compliant with all tax and labour laws. Each payroll service has strengths. It is important to evaluate your business’ needs, whether it be ease of use or flexible pricing.

Assessing Your Business Needs

You can find the best solution for your business by comparing providers that cater to different sizes and needs. To find the best fit, consider your business’s size, budget, and features.

The Key Factors To Consider

Be sure to take into consideration factors such as integration with other systems, the availability of customer support, and any costs associated with premium functions before making a decision.

Maximizing Payroll Effectiveness

You can choose a provider who will not only help you to stay compliant but will also improve the efficiency of your processes.

The conclusion of the article is:

Each payroll provider offers features that are tailored to the needs of different businesses. There’s a provider that can meet your needs, whether you are looking for affordability, HR features or customer service. Assess your business size, industry and needs to determine the best payroll provider for you in 2025.