HMRC requirements sorted
Xero uses HMRC-recognised payroll software. Simplify compliance and make business easy.
- Keep accurate digital records about pay
- Submit payment and deduction details to HMRC each payday
Automated online payroll
Pay employees in just a few clicks using Xero's HMRC-recognised PAYE software. Payroll data updates your accounts automatically.
- Automatic tax, pensions and leave calculations
- Flexible pay calendars, tax and pay rates
- Email payslips and let employees view them online
Reduce payroll admin and save time by giving your employees access via the free Xero Me mobile app or the web app.
- Let staff submit leave requests and timesheets for review
- Allow employees to view leave balances and payslips
- Use the Xero Me mobile app or web portal
Fast pension re-enrolment
Eliminate the admin burden and save time with automated pension re-enrolment in Xero’s HMRC-recognised payroll software.
- Automatically assess and enrol employees
- Reduce manual processing to reduce the risk or errors
- Secure integration with pension providers
More about HMRC payroll software
When you enable automatic enrolment and re-enrolment in Xero, eligible employees are enrolled in your workplace pension, and contributions are deducted from their pay. Xero sends data directly to Nest or The People’s Pension, or lets you submit a file to another provider.
View a wide range of payroll reports to get valuable information on payroll activity, transactions, remuneration and pension contributions.
Add Xero HMRC-recognised payroll software to your Xero subscription for £5 a month for up to 5 payroll employees, then £1 for each additional employee per month.
Plans to suit your business
All pricing plans cover the accounting essentials, with room to grow.
Our most popular plan Standard
GBP per month
Good for growing small businesses.
- Send invoices and quotes
- Enter bills
- Reconcile bank transactions
- Submit VAT returns to HMRC
- Capture bills and receipts with Hubdoc
- Automatic CIS calculations and reports
- Bulk reconcile transactions
- Short-term cash flow and business snapshot
- Use multiple currencies
- free for 3 months*
- free for 3 months**
- free for 3 months***
- for £5 per month
- free for 2 months‡
- free for 4 months^