Payroll software for your UK small business
Paying your team shouldn't eat up your week. Get every wage right and file with HMRC on time after each pay run, so you can cut the admin and get back to running your business.
Automatic RTI submissions, every pay run
Automatically file Real Time Information (RTI) reports with HMRC after every pay run, on time, every time.
Payroll compliance made easy
95% of customers agree Xero Payroll helps them stay compliant*
Stay accurate with auto calculations
Employee pay, tax rates, leave entitlements, and pensions are automatically calculated for you.
24/7 online support from specialists
We're here to help you with your payroll needs, no matter the time of day.
Switching to Xero Payroll is easy
Ready to modernise your payroll? Switch to Xero’s cloud-based payroll software in 6 simple steps with our Switching Wizard. Start your 30 day free trial.
| Desktop payroll | Xero cloud-based payroll | |
|---|---|---|
| Accounting integration | ||
| Use anywhere, any time | ||
| Real-time collaboration | ||
| Employee tools | ||
| Fully cloud based | ||
| Secure automated backups | ||
| Live auto-compliance updates |
Trustpilot
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See how online payroll streamlines tasks
Simplify pay runs with Xero payroll
Plans for growing businesses
Ignite
for the first 6 months
Then £18 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Enter 10 bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for £0.20 per payment††
- Payroll for £1.50 per person
- 30 day cash flow forecast
- Visualise performance with basic graphs
- Company accounts and tax (optional £120 excl. Vat billed annually)
Grow
for the first 6 months
Then £39 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
- Company accounts and tax (optional £120 excl. Vat billed annually)
Comprehensive
for the first 6 months
Then £55 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Ultimate
for the first 6 months
Then £70 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Not VAT registered? See plans for simpler business needs.View plans
Spend less time on payroll and more on your business
Here's how Xero makes each pay run quick and accurate, with less admin for you along the way.
Run payroll in minutes
Switch to Xero's payroll and pay your team in just a few clicks, making payday quick and easy.
Automatic calculations, no guesswork
Taxes, pensions and leave are calculated automatically, reducing errors and saving you valuable time.
Let your team self-serve
With Xero Me, your team can view payslips, request leave and submit timesheets from their phones.
Join over 5 million customers using Xero
Meet HMRC deadlines without the manual work
Every pay run files itself with HMRC. Xero sends your Full Payment Submission (FPS) after each run and your Employer Payment Summary (EPS) each tax period, then updates tax codes automatically. It helps you stay on top of the latest legislation without checking a thing.
Explore HMRC-recognised payroll software
Automate every payroll calculation
Xero works out your pay, tax, National Insurance, pensions and leave as you run payroll, so the numbers add up first time. Every change flows straight through to your accounts, with no double entry.
Handle workplace pensions on autopilot
Xero checks who needs enrolling every pay run and enrols or re-enrols them automatically, then works out the contributions. It connects directly to Nest and The People's Pension, so pension admin stays on track without the spreadsheets.
Automating workplace pensions in Xero
Wondering how statutory pay adds up?
Xero works out statutory sick, maternity, paternity, shared parental, adoption and bereavement pay, applying small employers' relief where it's due. It also handles Construction Industry Scheme (CIS) deductions and returns and off-payroll (IR35) workers, so complex cases stay right and compliant.
Manage payroll and accounting in one place
One login covers payroll and accounting, and every pay run syncs straight to your ledger, so your books stay up to date without double entry. Your team can use Xero Me to view payslips, request leave and send timesheets, while you track the business from the Xero Accounting app.
The Xero Me employee app
Get one month free
Purchase any Xero plan, and we will give you the first month free.
FAQs on Xero's payroll?
Payroll software works out what to pay your employees, deducts the right tax and National Insurance, and files the results with HMRC. Xero runs your pay calculations, produces payslips and keeps payroll alongside your accounting in one place, so your records update as you pay people.
Payroll software works out what to pay your employees, deducts the right tax and National Insurance, and files the results with HMRC. Xero runs your pay calculations, produces payslips and keeps payroll alongside your accounting in one place, so your records update as you pay people.
Yes. Xero is HMRC-recognised payroll software, so it meets the standards for Real Time Information (RTI) reporting. After each pay run, Xero sends a Full Payment Submission (FPS) to HMRC, and it files an Employer Payment Summary (EPS) each tax period when one is due. You can read more about employer obligations in the GOV.UK guide to running payroll.
Yes. Xero is HMRC-recognised payroll software, so it meets the standards for Real Time Information (RTI) reporting. After each pay run, Xero sends a Full Payment Submission (FPS) to HMRC, and it files an Employer Payment Summary (EPS) each tax period when one is due. You can read more about employer obligations in the GOV.UK guide to running payroll.
Absolutely. Xero assesses your team every pay run and enrols or re-enrols employees automatically to help you meet your automatic enrolment duties when they qualify. Xero also calculates contributions and connects directly to Nest and The People's Pension, so your workplace pension stays on track.
Absolutely. Xero assesses your team every pay run and enrols or re-enrols employees automatically to help you meet your automatic enrolment duties when they qualify. Xero also calculates contributions and connects directly to Nest and The People's Pension, so your workplace pension stays on track.
Xero calculates the main types of statutory pay and leave, so you can pay people correctly through any life event. This covers:
• statutory sick pay (SSP)
• statutory maternity and paternity pay
• shared parental pay
• adoption pay
• bereavement pay
Xero works out each amount as part of your pay run. For the full breakdown, see the Xero payroll features.
Xero calculates the main types of statutory pay and leave, so you can pay people correctly through any life event. This covers:
• statutory sick pay (SSP)
• statutory maternity and paternity pay
• shared parental pay
• adoption pay
• bereavement pay
Xero works out each amount as part of your pay run. For the full breakdown, see the Xero payroll features.
A payroll number is a unique reference an employer gives each employee to identify them in the payroll system, and employers report each person's pay and deductions to HMRC under PAYE (Pay As You Earn). You'll usually find it at the top of a payslip. Xero generates payslips for every pay run, so your employees can see their payroll number and pay details each time they're paid.
A payroll number is a unique reference an employer gives each employee to identify them in the payroll system, and employers report each person's pay and deductions to HMRC under PAYE (Pay As You Earn). You'll usually find it at the top of a payslip. Xero generates payslips for every pay run, so your employees can see their payroll number and pay details each time they're paid.
Yes they can. With Xero Me, your employees can view and download their own payslips and P60s, request leave and submit timesheets from their phone. That means fewer admin requests for you and quicker answers for your team.
Yes they can. With Xero Me, your employees can view and download their own payslips and P60s, request leave and submit timesheets from their phone. That means fewer admin requests for you and quicker answers for your team.
Yes. Xero calculates Construction Industry Scheme (CIS) deductions and helps you file CIS returns, so subcontractor payments stay accurate. It also supports off-payroll (IR35) workers, giving you a clear way to handle more complex payroll cases.
Yes. Xero calculates Construction Industry Scheme (CIS) deductions and helps you file CIS returns, so subcontractor payments stay accurate. It also supports off-payroll (IR35) workers, giving you a clear way to handle more complex payroll cases.
Payroll is included in the Xero Grow, Comprehensive and Ultimate plans in the UK, and it's also available on the Xero Ignite plan for a per-person fee. Each plan allows for a set number of payroll people each month. Compare what's included on the Xero UK pricing plans.
Payroll is included in the Xero Grow, Comprehensive and Ultimate plans in the UK, and it's also available on the Xero Ignite plan for a per-person fee. Each plan allows for a set number of payroll people each month. Compare what's included on the Xero UK pricing plans.