Payroll software for small business

Payroll software for small businesses that do it themselves

Run monthly payroll for your team in minutes. PayAdjust calculates PAYE, National Insurance, pensions and statutory pay, files with HMRC in one click, and gives every employee a payslip they can actually understand.

  • Recognised by HMRC
  • £15/month, 10 employees included
Payslip previewOctober 2026
Gross pay£2,666.67
Pension (5%)−£133.33
Income Tax−£297.17
National Insurance−£129.53
Take-home£2,106.64

Priya Shah · Operations · £32,000 a year

FPS accepted by HMRC

HMRC mark A4F2-9D81 · 14:02

HMRC PAYE recognised
30-day free trial
Every feature, one plan
UK data residency
Why PayAdjust

A payroll system for small business owners, not payroll clerks

Most payroll software for small business is a cut-down version of something built for payroll departments. PayAdjust starts from the other end: a UK employer with a handful of people, no accounting background, and better things to do on the last Friday of the month.

You set up your PAYE references once, invite your team, and run payroll monthly. Tax, National Insurance, workplace pension contributions, student loans, sick pay and maternity pay are all calculated for you with the current year’s rates. Your Full Payment Submission goes to HMRC in one click, and the acceptance is stored against the run. Employees get their own login for payslips, P60s and pension changes, so the questions stop landing on you.

Compliance built in

Rates and thresholds are updated for you each tax year. PayAdjust is recognised by HMRC for RTI, so your FPS and EPS go straight to the Government Gateway.

Nothing to install

Runs in the browser on any laptop. No desktop licence, no annual update disc, no one PC that holds the only copy of your payroll.

One flat plan

£15/month includes 10 employees, then £2/month each. Every feature is included. There is no Essentials tier that leaves out the thing you need.

Employees help themselves

Payslips, P60s, holiday requests, expenses and pension changes all happen in the employee portal, not in your inbox.

What you need

What small business payroll software has to do

The legal baseline is the same for a two-person café and a fifty-person agency. Here is the list, and how PayAdjust handles each item.

  • 01

    Calculate PAYE, National Insurance and student loans correctly

    A tax engine built against HMRC’s own specifications, covering every tax code (including Scottish and Welsh), NI categories A to M, and student loan plans 1, 2, 4, 5 and postgraduate.

  • 02

    Pay statutory sick, maternity, paternity and adoption pay

    SSP, SMP, SPP, SAP, ShPP and parental bereavement pay are calculated with the right waiting days and rates, and statutory recovery is filed on your EPS.

  • 03

    Assess and enrol staff into a workplace pension

    Every employee is assessed against the auto-enrolment thresholds each month. Opt-outs, refunds and three-year re-enrolment are tracked, and a contribution schedule is produced for your provider.

  • 04

    Report to HMRC on or before every payday

    One-click FPS filing with HMRC’s response shown in seconds. EPS for Employment Allowance, no-payment months and statutory recovery, all from the same screen.

  • 05

    Give employees payslips, P60s and P45s

    Generated automatically, emailed when ready, and available in the employee portal for as long as they work for you.

  • 06

    Actually pay people

    A BACS file in Standard 18 format for your bank, a payment summary CSV, and a status for every employee. You stay in control of when money moves.

  • 07

    Keep track of holiday and absence

    Holiday requests with live balances, carry-over rules, absence recording and a company calendar that shows pay days and HMRC deadlines.

How it works

Four steps, once a month

  1. Step 01

    Add your team

    Invite employees by email. They fill in their own address, NI number and bank details, so you never chase a form.

  2. Step 02

    Run payroll

    Create the month and every payslip is calculated: PAYE, National Insurance, pension, student loans and statutory pay.

  3. Step 03

    Let employees check it

    Release payslips for preview. Employees see their pay before payday and can adjust pension contributions with live tax impact.

  4. Step 04

    Approve and file

    Approve the run, file the FPS with HMRC in one click, download the BACS file and pension schedule. Done until next month.

Everything included

All 120 features, on one plan

Payroll & Tax

  • Automatic PAYE from tax code and salary
  • Employee & employer NI contributions
  • Student loan deductions (Plan 1, 2, 4, 5 & PG)
  • Pro-rata calculations for mid-month starters
  • Overtime, expenses, and statutory pay in a few clicks
  • One-time and recurring bonus support

Pension & Auto-Enrolment

  • NEST, Workplace, Master Trust & SIPP schemes, or a private pension
  • Worker category assessment dashboard
  • Opt-out window tracking with guided refund steps
  • 3-year re-enrolment monitoring
  • Salary sacrifice, net pay and relief-at-source arrangements
  • Custom pension rates or private pension on a per-employee basis

Filed with HMRC, automatically

  • HMRC-recognised one-click FPS filing over the Government Gateway
  • Real-time response with HMRC mark stored on every submission
  • Friendly rejection cards explain how to fix data issues
  • P60 and P45 generation (with bulk year-end output)
  • Scottish and Welsh tax code support
  • Optional XML download if you’d rather file manually

Employee Self-Service

  • Payslip preview before payday
  • Overtime and expense submissions
  • Holiday requests with live allowance balance
  • Pension adjustment with deadline countdown
  • AI pension advisor with personalised guidance
  • Self-service P60, P45, and payslip downloads

Reporting & Analytics

  • Company calendar with holidays, absences, deadlines, and pay days
  • Dashboard with key metrics at a glance
  • Tax year summaries
  • Payroll cost trend charts over time
  • Department breakdown visualisations
  • Headcount trend and employer cost tracking

Security & GDPR

  • AES-256 encryption for sensitive data
  • Row-level security at the database layer
  • GDPR data export
  • Right to erasure with 6-year retention rules
  • Two-factor authentication required for all users
  • Immutable audit trail for every action
Pricing

One plan. Nothing held back.

Everything included

£15/month

Includes 10 employees, then £2/month each. Pay annually and save 40%.

  • HMRC-recognised RTI filing
  • Pension auto-enrolment
  • Statutory pay and holiday
  • Employee portal and AI advisor
  • 30-day free trial, cancel anytime
Start 30 days free

What it costs at your size

EmployeesMonthlyAnnual
5£15/mo£108/yr
10£15/mo£108/yr
25£45/mo£378/yr

Most small businesses sit inside the included seats, so the monthly cost is the base price. Leavers stop counting the month they leave.

Full pricing details
The guide

Do I need payroll software for my small business?

If you employ anyone who earns at or above the Lower Earnings Limit, has another job, or receives a pension, you have to operate PAYE and report to HMRC in real time. That means a Full Payment Submission on or before every payday. Doing that by hand is not realistic, so your real choice is between three things: an accountant or bureau who runs it for you, HMRC’s free Basic PAYE Tools, or payroll software you run yourself.

Paying an accountant works well when payroll is complicated or you never want to look at it. The trade-off is cost per month and a delay every time something changes. HMRC’s own tool is free but built for employers with fewer than 10 employees, does not assess workplace pensions, and gives your staff nothing to log in to. Payroll software you run yourself sits in the middle: a fixed monthly cost, full control, and the compliance work done for you.

What to look for in small business payroll software

  • HMRC recognition. HMRC publishes a list of recognised payroll software. Recognition means the software has passed HMRC’s RTI testing. “HMRC compliant” on its own means nothing.
  • Pension auto-enrolment included. Assessments, opt-out windows, re-enrolment and provider schedules should be part of payroll, not an add-on.
  • Statutory pay without a calculator. Sick, maternity, paternity and adoption pay should be handled from the dates, not typed in from a government table.
  • An employee portal. If payslips still go out as email attachments, you will become the person who re-sends them.
  • Pricing you can predict. Watch for per-employee fees stacked on tiered plans. Work out what you would pay at twice your current headcount.
  • Cloud, not desktop. Payroll that lives on one computer is one spilled coffee away from a very bad month.

How much does payroll software cost for a small business?

Pricing shapes vary: some products charge per employee per month, some charge tiers that unlock features, and some bundle payroll into accounting software you may not want. PayAdjust is one plan: £15/month including 10 employees, £2/month for each additional employee, with every feature included. Annual billing is cheaper again. Full details are on the pricing page.

Software is only part of the cost of employing someone. Use the employer cost calculator to see salary plus employer National Insurance and pension contributions for a given role.

Switching to PayAdjust from another system

The cleanest time to switch is the start of a tax year on 6 April, or the moment you first register as an employer. You enter your PAYE reference and Accounts Office reference, add your Government Gateway credentials for filing, invite employees, and run your first month. If you are mid-way through a tax year, get in touch before you start so we can talk through year-to-date figures.

Where PayAdjust is not the right fit

We would rather tell you now. PayAdjust runs monthly pay periods, so if you pay weekly it is not for you yet. There is no Construction Industry Scheme support beyond reporting CIS deductions suffered, no built-in accounting ledger, and we are built for employers of roughly 1 to 100 people. If any of those are deal-breakers, our comparison of UK payroll software names the products that will serve you better.

FAQs

Questions we get asked

30-day free trial · No contracts

Run your first payroll this month

Set up in an hour, file with HMRC in one click, and give your people a payslip they can read.

Start 30 days free