Payroll software that makes payday a breeze
Payday should be the easy part of your week. Get every wage right and file with HMRC after each pay run, so you have more time to run 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. Get one month free.
| 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 |
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See how online payroll streamlines tasks
Simplify pay runs with Xero Payroll
Spend less time on payroll and more on your business
Here's how Xero takes the busywork out of pay runs and keeps every one accurate.
Run payroll in minutes
Switch to Xero's payroll and pay your team in a few clicks, straight from Xero using open banking.
Automatic calculations, no guesswork
Let Xero calculate tax, pensions, and leave, and spend less time checking the numbers.
Stay compliant, automatically
HMRC-recognised payroll software sends Real Time Information (RTI) submissions and updates automatically, helping you stay on top of deadlines.
Join over 5 million customers using Xero
Keep HMRC up to date as you pay your team
our books stay current after every pay run, because payroll data syncs straight to your Xero accounts. That means less manual record keeping. 92% of customers say they run payroll faster using Xero (Xero survey, May 2024).
- Send an FPS after each pay run
- File an EPS for each tax period
- Produce P60s and P11s at year end
Manage payroll and accounting in one place
When payroll and the books are kept apart, the same figures get typed in twice. With Xero, each pay run flows straight into your general ledger, so your accounts and reports stay current. You can also pay employees directly from Xero using open banking.
- One login for pay and books
- Pay runs post to your accounts as you go, so your figures stay current.
- Pay employees from Xero
- Pay your team by open banking from Xero, or schedule the payment for payday.
Automate your payroll calculations
Xero works out pay, tax and National Insurance (NI) from each employee's tax code, NI category and pension details, plus student loans and directors' NI. 92% of UK small businesses surveyed say they run payroll faster with Xero.* *Source: Xero survey of 254 UK small businesses, May 2024.
- Calculate Pay As You Earn (PAYE) tax and NI
- Handle student loan deductions
- Work out directors' NI
Handle workplace pensions on autopilot
Set up automatic enrolment in Xero by adding your duties start date, pension provider, and contribution rates. Xero works out contributions and sends them to Nest or The People’s Pension, and alerts you on the pay run screen when re-enrolment is due. That’s one less job on your list!
- Set up automatic enrolment
- Xero shows each employee's eligibility and enrolment status, and alerts you on the pay run screen when re-enrolment is due.
- Send contributions to your provider
- Contributions go to Nest or The People's Pension through a direct connection.
Wondering how statutory pay adds up?
Family leave and sick days need careful sums. Xero calculates statutory sick, maternity, paternity, shared parental, adoption, and bereavement pay, plus small employers' relief. It handles Construction Industry Scheme (CIS) deductions and IR35 workers too, and your team can check payslips in Xero Me.
- Calculate statutory pay for leave and sickness
- Apply small employers' relief where it's due
- Manage CIS returns and off-payroll workers
FAQs on Xero's payroll software
Payroll software works out each employee's pay after tax and National Insurance, then reports the figures to HMRC. Xero does this in every pay run, then posts the totals to your books in Xero accounting software.
Payroll software works out each employee's pay after tax and National Insurance, then reports the figures to HMRC. Xero does this in every pay run, then posts the totals to your books in Xero accounting software.
Absolutely. Xero is HMRC-recognised payroll software that sends an FPS after every pay run, plus an EPS for each tax period. GOV.UK explains what running payroll involves.
Absolutely. Xero is HMRC-recognised payroll software that sends an FPS after every pay run, plus an EPS for each tax period. GOV.UK explains what running payroll involves.
Yes. HMRC offers Basic PAYE Tools for employers with fewer than 10 employees. Xero adds accounting, workplace pensions and employee self-service alongside payroll. You can also browse GOV.UK's list of payroll software.
Yes. HMRC offers Basic PAYE Tools for employers with fewer than 10 employees. Xero adds accounting, workplace pensions and employee self-service alongside payroll. You can also browse GOV.UK's list of payroll software.
If you pay anyone through PAYE, yes. HMRC collects income tax and National Insurance through Pay As You Earn (PAYE), and Xero reports each pay run to HMRC in an FPS. The Xero Grow plan includes payroll for one person, so your first hire is covered.
If you pay anyone through PAYE, yes. HMRC collects income tax and National Insurance through Pay As You Earn (PAYE), and Xero reports each pay run to HMRC in an FPS. The Xero Grow plan includes payroll for one person, so your first hire is covered.
Absolutely. Xero helps you meet the employer duties set by The Pensions Regulator:
assess employees for auto-enrolment
enrol eligible staff automatically
calculate contributions in every pay run
connect directly to Nest and The People’s Pension (252 chars / no limit)
The Pensions Regulator sets out your employer duties in full.
Absolutely. Xero helps you meet the employer duties set by The Pensions Regulator:
assess employees for auto-enrolment
enrol eligible staff automatically
calculate contributions in every pay run
connect directly to Nest and The People’s Pension (252 chars / no limit)
The Pensions Regulator sets out your employer duties in full.
Xero calculates:
• statutory sick pay (SSP)
• maternity and paternity pay
• shared parental and adoption pay
• bereavement pay
It also applies small employers' relief where it's due. See the rest of the UK payroll features.
Xero calculates:
• statutory sick pay (SSP)
• maternity and paternity pay
• shared parental and adoption pay
• bereavement pay
It also applies small employers' relief where it's due. See the rest of the UK payroll features.
For sure. Your team can check payslips and P60s, and send leave requests, in the Xero Me employee app.
For sure. Your team can check payslips and P60s, and send leave requests, in the Xero Me employee app.
Certainly. Xero calculates Construction Industry Scheme (CIS) deductions and prepares your CIS returns. It also handles off-payroll workers who fall under IR35 rules.
Certainly. Xero calculates Construction Industry Scheme (CIS) deductions and prepares your CIS returns. It also handles off-payroll workers who fall under IR35 rules.
Xero's payroll switching wizard takes you through setup in six simple steps, including your opening balances, and imports payroll data from your latest FPS, so there's less to type in.
Xero's payroll switching wizard takes you through setup in six simple steps, including your opening balances, and imports payroll data from your latest FPS, so there's less to type in.
Payroll is included in the Grow, Comprehensive and Ultimate plans. It's also available on Ignite for a per-person fee. Compare Xero UK pricing plans to find your fit.
Payroll is included in the Grow, Comprehensive and Ultimate plans. It's also available on Ignite for a per-person fee. Compare Xero UK pricing plans to find your fit.
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
Get one month free
Purchase any Xero plan, and we will give you the first month free.
