Using the best payroll software for small and big businesses is a quick and easy way of managing paying daily wages and any associated benefits and taxes. A payroll software is nowadays very essential in today’s generation for business with employees. Employees are provided with clear cut information to reflect on their wages as well as the necessary deductions. Earlier it used to be that payroll software was downloaded and run from office with pay slips printed out. However nowadays cloud-based payroll systems allow not only for better redundancy but also for digital record keeping. So that by using this employee can access pay slips from home and in their phones rather than printing them out on paper and wasting paper too. In addition, this digital transformation also makes it easier for employees to submit queries and support can be better around it. There are many payroll systems in UK and the best free ones are mentioned below.

1.12 Cloud Payroll

The features of 12 cloud are as follows: –

  • RTI complaint
  • Handles auto enrollments
  • Automatically generates P11
  • Pay summaries and other reports available
  • Can export key datas
  • Offers employee payroll accounts
  • Compatible with accounting packages

The Pros of using 12 Cloud Payroll are: –

  • Free upto nine to ten employees
  • Rollback facility which allows us to correct errors easily
  • Rich dashboard facilities

The Cons of using 12 Cloud Payroll are: –

  • Its free for small business
  • Has dated interface 
  • Free version having adverts

Limitations

The main limitation of this software is that it is offering only free for business to upto 9 employees. Once the company has more than nine employees then it becomes payable. So larger SME’s will find other providers more of cost effective. Apart from this, the free version is also virtually identical to the paid version making it apt for really small-scale businesses.

2.IRIS Payroll Basics

The features of IRIS Payroll Basics are as follows: –

  • It complies with GDPR
  • It automatically backs up data in every use
  • Handles auto enrolment 
  • Produces pension reports
  • Generates mandatory employee forms just as you need them
  • It offers easy upgrades paths

The Pros of using IRIS Payroll Basics are: –

  • Free for upto nine employees
  • It automatically calculates PAYE and NI. 
  • It is used by more than 40,000 business worldwide and in UK. 

The Cons of using IRIS Payroll Basics are: –

  • Its free for small business
  • Has dated interface 
  • Free version having adverts
  • Basic no frill software

Limitations

Iris Payroll Basics is free for only upto nine employees just like some other Payroll software’s. However, unlike some software’s this free version is not very much similar in quality as compared to its paid version. IRIS has produced a basic version for leading its very small businesses, this does everything you need it to but it can be bit tricky to use. Also this particular software does not publish its price plan for payroll comparison service will quickly get quotes from top UK provider to tailor the needs of our business.

3.Capium 

The features of Capium are as follows: –

  • It has a simple FPS and EPS submissions
  • Easy to use auto enrolment option provided
  • Supplementary submission form
  • End of year submissions
  • Analytics for payroll reports 

The Pros of using Capium are: –

  • Free for up to three employees
  • It automatically calculates PAYE and NI. 
  • Designed for accountants
  • Integrates with full suit of capium service

The Cons of using Capium are: –

  • Its free for only microbusiness 
  • Has dated interface 
  • Free version having adverts
  • Basic no frill software

Limitations

The central limitation of Capium free payroll is that it is free for only up to three employees. It is therefore suitable only mostly for microbusiness. Once we pass this limit then we need to sign up for the advance payroll. So while using Capium , if there are more than three employees then we will need to use the full range of Capiums services in order for it to be really cost effective for us.

4.Shape 

The features of Shape are as follows: –

  • Starter wizard makes it easy to learn and absorb
  • It generates password protected slips
  • Easily create P60 and P45 forms
  • Can automatically assess staff for auto payment and enrollment

The Pros of using Shape are: –

  • Free for up to three employees
  • It automatically calculates PAYE and NI. 
  • Designed for accountants
  • Colorful and intuitive interface 

The Cons of using Shape are: –

  • Its free for only microbusiness 
  • Has dated interface 
  • Free plan includes only core features
  • Only free for microbusiness 

Limitations

Shape Payroll is free only if we are paying three employees and fewer. Therefore, it is basically another option if we are looking for only to suit microbusiness. If we need to add more employees then we can pay a standard charge of 5 pounds a month plus extra fee of 1 pound for each additional employee. The platforms lack also some advanced features like the ability to correct errors easily.

5.Primo Payroll

The features of Primo Payroll are as follows: –

  • RTI submissions included
  • Auto enrolment features
  • Low priority emails support
  • It has a simple FPS and EPS submissions
  • Easy to use auto enrolment option provided
  • Supplementary submission form
  • End of year submissions
  • Analytics for payroll reports 

The Pros of using Primo Payroll are: –

  • Free for up to ten employees
  • It automatically calculates PAYE and NI. 
  • Designed for accountants
  • Colorful and intuitive interface 
  • Email support available
  • Handles auto enrolment

The Cons of using Primo Payroll are: –

  • RTI submissions
  • Auto enrolment intergration
  • Low priority email support 
  • Has dated interface 
  • Free plan includes only core features

Limitations

Primo payroll’s free tier, and essential free plans can handle well up to 10 employees, but if we need to add more then we need to pay 0.60 pounds per every pay slips each month. The free plan is also lacking in many features that are offered by its rivals. This is including straightforward tools like being easily able to handle holiday pays or being able to easily mail payslips.