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

A comprehensive cloud-based payroll system is 12 Cloud Payroll. It is appropriate for businesses of all sizes, from those with only one employee to those with thousands. As part of the system, RTI eReturns and eReceipts are offered. The fact that 12 Cloud Payroll is only accessible for companies with up to nine employees is its main drawback. Larger SMEs may discover other providers to be more cost-effective after they have ten or more employees. With the exception of that, the free edition is nearly identical to the pricey version, making it the ideal choice for very tiny businesses.

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

Payroll management is simple and easy for companies with fewer than ten workers. Free payroll software that complies with RTI and automatic enrolment is IRIS payroll basics. This free payroll software is an innovative solution if you are looking for an easy way to handle your payroll for fewer than ten employees. The best option for payroll is IRIS Payroll Basics, which is free RTI-compliant software and HMRC-recognized.

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 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.

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 

With Shape Payroll, you can pay up to three employees without fees. All of their essential capabilities, such as creating payslips and payroll papers, are included in this bundle. Employee records may be made, edited, and checked to see if they use the correct tax code. For simple and intuitive navigation, this platform is set up consistently and neatly. Whether an expert or a novice, you can easily execute your payroll chores.

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

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 pay slips

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.

6.Sage

Sage is a self-contained distribution of mathematical software that is free and open source and includes a sizable library that gives its various parts a consistent user interface. Real-time information reporting is available through Sage Payroll, simplifying the PAYE submission process. You can use this software to send real-time information every time you pay your personnel digitally. This platform is ideal for you if you are seeking an HMRC-compliant solution. You can report PAYE data online and in real-time with the aid of this service.

This software has a built-in capability that enables you to rectify any mistakes that might occur quickly. After that, the solution fixes the corrections for the upcoming pay runs. The adjustments are also reflected on the paystubs for your workers. The software additionally displays the updated items. This platform pays employees accurately and schedules each business every time with HMRC-recognized HR and payroll software.

7.Xero

One of the best payroll systems for UK businesses is Xero since it automatically updates your pension and payroll accounts. Additionally, it sends your information to HMRC. Xero payroll has timesheets built in to keep track of how many hours your employees have worked. It then effortlessly automates the determination of payments due, making payroll administration more straightforward for you.

Set up bank feeds by connecting your bank to Xero. Transactions arrive immediately into Xero every business day. Due to daily bank feeds, you can reconcile daily to ensure the accounts reflect an accurate and current picture of your company’s financial situation. View a dashboard summary of the money coming in and going out. Every day, classify transactions to prevent a backlog from building up.

8.Free agent

Payroll and accounting management can be easily accomplished with the aid of Free Agent. HMRC compliance, RTI support, a stopwatch, timesheets, bank payments, and a calculator for furlough claims are just a few of its features. Even though this program is suitable for small enterprises, its reports are somewhat limited but function perfectly. This is just another example of the top free payroll programs in the UK. However, you must sign up for one paid package, including accounting, to use the free payroll.

Create payslips for all your clients automatically each month, and you may view them online or print them as PDFs. Create P60s for all your clients after the tax year. Create a P45 automatically when an employee quits your client’s company, which you may view online or print. FreeAgent’s user-friendly interfaces and time-saving automation capabilities make it simple to remain on top of your company’s administration.

9.Bright pay

Bright Pay is payroll software that facilitates rapid and straightforward payroll management. The desktop-based payroll software may be installed on up to 10 PCs and is compatible with both Microsoft Windows and Apple Mac OS X. BrightPay is a cost-effective solution with no additional fees for customer support, in-year upgrades, or hidden costs, and get the free 60-day trial right now.

A robust online feature set is added by BrightPay Connect, an optional cloud add-on to the desktop payroll software, including an automated cloud backup, online employer dashboards, yearly leave management, an employee self-service portal, and client payroll submission and approval are also included. Although BrightPay’s desktop program is still used to process payroll, the data is now kept online on a secure cloud server.

10.Papaya

Papaya’s cloud-based SaaS platform automates worldwide payroll end-to-end in more than 160 countries, covering people, payroll, and payments. Companies can leave their network of regional partners to switch their antiquated traditional payroll software to Papaya’s innovative platform.

In a single payroll cycle, Papaya can integrate with the networks of businesses. All payroll data is automatically validated by built-in compliance and accuracy engines to guarantee a flawless payroll every time. Any firm can benefit from Papaya Global’s ability to streamline global people management. Businesses can access Papaya’s state-of-the-art automation, security, and BI capabilities without switching to a different payroll system. You can use the free trial to learn more about the program. For complete peace of mind, all of your payroll data is verified by our accuracy and compliance engine before processing.

11.Kash flow

Employers can be automatically evaluated and enrolled in a qualifying scheme using Kash Flow payroll software. Calculate employer and employee contributions and automatically generate the appropriate paperwork for pension providers and employees. For accounting companies and their small business clients, Kash Flow is a complete online bookkeeping and payroll solution. It offers a fully integrated platform for your organization when combined with IRIS Software, which powers 17,000 accountancy companies across the UK.

12.HRMC

HMRC offers Basic PAYE Tools as free payroll software for companies with fewer than ten employees. With the help of this software, you can submit an earlier year update and employment payment summary and check a new employee’s NI number. The system is extremely clear and uncomplicated and lacks the capabilities other suppliers give. BPT does not permit auto-enrolment, nor does it transmit information to your pension provider. The software enables you to complete most payroll procedures, including calculating and sending your employees’ tax and national insurance contributions to HMRC.