Best Accounting Software with Payroll UK
Discover the top accounting software solutions in the UK that offer robust payroll functionalities, ensuring compliance and efficiency for your business.
Choosing the right accounting software with integrated payroll is crucial for UK businesses to manage employee payments, tax submissions, and pension contributions seamlessly. Our comprehensive guide helps you compare and select the best options tailored to your needs, saving you time and ensuring compliance with HMRC regulations.
All 11 Options Ranked
| Software | Rating | From | Action | MTD Compliant | Payroll | Inventory | Multi-Currency | Time Tracking | Bank Feeds | Expenses | Tax Filing |
|---|---|---|---|---|---|---|---|---|---|---|---|
QuickBooks Online Most Popular | 4.7 | £10/mo | |||||||||
Xero Editor's Pick | 4.6 | £7/mo | |||||||||
FreeAgent UK Favourite | 4.6 | £0 eligible customers, £10/mo landlord or £19/mo sole trader | |||||||||
 Sage Accounting UK Favourite | 4.4 | £20/mo | |||||||||
Crunch | 4.3 | Free or £10/mo + VAT | |||||||||
Sage 50 Accounts Enterprise | 4.2 | £115/mo | |||||||||
Oracle NetSuite Enterprise | 4.1 | Custom quote | |||||||||
Clear Books | 4.1 | Free | |||||||||
 Odoo Free Option | 4.1 | Free; UK price unavailable | |||||||||
Microsoft Dynamics 365 Business Central Enterprise | 4.0 | £6.20/user/mo | |||||||||
IRIS KashFlow | 4.0 | £13.50/mo |
Why integrated payroll saves time
Integrated payroll systems streamline your financial operations by connecting employee payments directly with your accounting records. This reduces manual data entry, minimizes errors, and frees up valuable time that can be reallocated to core business activities.
RTI submissions explained
Real Time Information (RTI) is the mandatory system for reporting payroll information to HMRC every time you pay your employees. Effective payroll software automates these submissions, ensuring your business remains compliant with tax regulations and avoids potential penalties.
Auto-enrolment pension duties
UK employers have a legal obligation to automatically enroll eligible employees into a workplace pension scheme and contribute to it. Payroll software simplifies the management of these contributions, deductions, and reporting requirements, ensuring you meet your auto-enrolment duties.
CIS for contractors
The Construction Industry Scheme (CIS) requires contractors to deduct tax from payments made to subcontractors and pay it to HMRC. Specialized payroll software provides robust CIS support, helping contractors accurately calculate and report these deductions, ensuring compliance within the construction sector.
Frequently Asked Questions
What is RTI and why is it important for UK payroll?
Real Time Information (RTI) is a system for reporting payroll information to HMRC every time you pay your employees, rather than annually. It's crucial for ensuring accurate tax and National Insurance contributions, ensuring your business remains compliant.
What are auto-enrolment pension duties for UK employers?
Auto-enrolment requires all eligible employers in the UK to automatically enroll their eligible employees into a workplace pension scheme and contribute to it. Payroll software helps manage these contributions, deductions, and reporting to The Pensions Regulator.
How does payroll software handle PAYE management?
Payroll software automates the calculation of Pay As You Earn (PAYE) tax and National Insurance contributions, ensuring correct deductions from employee wages and accurate reporting to HMRC, minimizing errors and ensuring compliance.
What is CIS support in payroll software and who needs it?
The Construction Industry Scheme (CIS) applies to contractors and subcontractors in the construction industry. CIS-compliant payroll software helps manage deductions from subcontractors' payments and report them to HMRC, ensuring legal compliance.
Is HMRC recognition important for payroll software?
HMRC recognition indicates that the software meets HMRC's standards for payroll processing and submissions. This ensures compliance with tax regulations, reduces the risk of errors, and provides peace of mind that your payroll is handled correctly.