The 7 Best Payroll Solutions for Your Small Business

Payroll can be time-consuming and confusing for small businesses, but the right payroll solution can ease the burden through outsourced services and payroll software.

We’ve researched several top payroll companies, and Moorepay came out on top thanks to its easy-to-use payroll software and its team of highly qualified consultants.

However, Moorepay won’t suit every business since it doesn’t, for example, process payroll internationally. That’s why we’ve prepared a detailed ranking of our top seven picks, which suit a variety of small businesses.

Read on to learn about them, or skip ahead and get no-obligation payroll quotes right away using our free quote-finding service.

The Best Payroll Services for Small Businesses

Here’s a quick overview of the best payroll services for small businesses:

1. Moorepay: Best Overall Payroll Services Provider

• Services available: Fully-managed payroll, DIY software, HR software
• Contracts available: Bespoke
• CIPP PAS-accredited: Yes

Why we recommend Moorepay

Moorepay is one of the UK’s largest payroll services and software providers, and has been around for almost 60 years.

On the software front, it offers an easy-to-use platform with integrated payroll and HR solutions. Moorepay even has a mobile app for employees, where they can view payslips, P60s, and book time off. On the services front, Moorepay gives you access to UK-based payroll specialists who are available to help you with any queries, making it easier for you to get started and avoid major problems when it comes to paying your contractors.

Moorepay’s onboarding process is simple. It handles all the legislative and policy changes your business might need when you switch providers, and sets up your new system for you, which is great if you’re not super tech-savvy, or you want to avoid a steep learning curve.

Also, like ADP, Moorepay provides CIPP-accredited expert payroll advice and offers tax-related educational resources. This helpful feature offers incredible support to companies, especially small businesses and those without an accounting team.

What Moorepay could improve

Unfortunately, it doesn’t allow for payment of international employees nor does it offer live training – features our experts have found in Iris Staffology.

2. ADP: Best for Integrated Payroll and People Management

• Services available: Fully managed payroll, DIY software, HR software
• Contracts available: Bespoke
• CIPP PAS-accredited: No

Why we recommend ADP

ADP has been in the payroll business for a long time, and this expertise has brought about great payroll and hiring solutions.

Along with payroll, ADP packs a powerful native suite of associated programs, like HR and recruiting software. Out of its native software, ADP’s hiring solution really stood out to our researchers. With it, you can run background checks, schedule interviews, and send out contracts.

The provider is also flexible, and you can choose the add-on features and services your business needs, meaning you only pay for the services you need, which is great for small businesses looking to save money.

Like Moorepay, ADP offers a mobile app where employees can view payslips. Conveniently, it can also be used as a clock-in system, which helps employees with rotating shift patterns to ensure their hours are being recorded correctly, something Moorepay, and TopSource don’t offer. Plus, ADP offers several payroll solutions for running international payroll, unlike Moorepay, which is great for small businesses that employ remote, overseas employees.

Lastly, you can integrate third-party solutions such as QuickBooks, ClockShark, and Wave to create one seamless platform to manage various aspects of your business.

What ADP could improve

Like most providers on this page, ADP’s pricing isn’t transparent, which can be a problem if you run a small business and need to find out whether ADP fits your budget. For the most part, this is standard practice in this industry, but some competitors, such as Iris Staffology or Sage, do advertise their prices and are worth considering.

3. OneAdvanced: Best for Training and Support

• Services available: Fully managed payroll, DIY software, HR software
• Contracts available: Bespoke
• CIPP PAS-accredited: Yes

Why we recommend OneAdvanced

OneAdvanced gives you the tools you need to deal with your payroll accurately and efficiently. As per our independent review, one of its selling points is its wide training tools, which are a plus if you’re running a small accounting team.

Its live training feature is noteworthy, allowing you to have lessons with provider’s personnel to get a grasp of its system quite quickly. Moorepay, for instance, doesn’t offer this – although IRIS Staffology does.

OneAdvanced is also CIPP accredited, which means it can offer expert advice on payroll compliance, which can be extremely valuable for those who are less experienced in payroll management. Plus, it offers educational information to help businesses understand taxes better.

Furthermore, OneAdvanced’s software can be integrated with its other solutions, which include HR, attendance, and finance software, providing small businesses with one comprehensive platform for both people management and accounting.

What OneAdvanced could improve

Even though OneAdvanced has one of the largest suites of native software solutions of the providers we researched, from recruiting to accounting, its software platform lacks open API, which means you can’t easily integrate your existing software into the platform.

OnAdvanced also doesn’t have an employee mobile app, which is offered by Moorepay and ADP, although employees have access to their data via desktop.

4. TopSource: Best for Managing International Payroll

• Services available: Fully managed payroll, HR software
• Contracts available: Bespoke
• CIPP PAS-accredited: Yes

Why we recommend TopSource

If you have a global business or plan to expand internationally, TopSource is a good choice as it offers compliant payroll services in over 150 countries.

Conveniently, TopSource also has a Portico app, which enables you and your employees to access relevant payroll data anywhere, anytime, making managing a workforce that’s in different time zones easy.

TopSource deals with every aspect of payroll from registering with HMRC to end-of-year processing. But unlike ADP, it doesn’t offer a part-managed version, and is only available as a fully-managed payroll solution and payroll software. Its native suite is quite comprehensive, packing HR, recruitment, and employee benefits platforms.

The company also offers an open API,  allowing businesses with an IT team to integrate their native software with their payroll. It also has ready-made integrations for accounting software, such as Sage, Xero, and QuickBooks.

What TopSource could improve

TopSource doesn’t allow for custom report building, which makes its reporting less flexible and customisable than MHR’s. Also, as with most providers we looked at, its pricing is bespoke, making it difficult to gauge whether this is the right provider for you.

If you own a small business and are in a hurry to choose your next payroll provider, Iris Staffology and Payescape may be better choices, since the former advertises its prices, and the latter offers monthly contracts.

5. Iris Staffology: Best for Integrating with Third-party Software

• Services available: DIY software, HR software
• Contracts available: 12 months
• CIPP PAS-accredited: Yes

Why we recommend Iris Staffology

Iris Staffology is a cloud-based payroll and HR software solution, that advertises its pricing (a rarity in the industry), and starts at an affordable £39 per month.

It packs more accounting and HR integrations than any of the providers we researched, including Sage, Xero, QuickBooks, AccountsIQ, and more. This benefits business owners who want to keep their current accounting or HR software and integrate it with Iris Staffology.

Iris Staffology ensures your business complies with legislation around Automatic Enrolment, making sure you stay compliant. The platform also deals with all deductions, such as NI and statutory tax, offering business owners peace of mind by helping them stay on top of these.

What Iris Staffology could improve

Iris Staffology does not offer all of the steps necessary for year-end features, such as your final payment submissions (FSPs). Moorepay does offer this however, it tends to be a pricier provider.

The platform also doesn’t allow for custom report building, unlike rivals Moorepay, MHR, and OneAdvanced.

6. MHR: Best Reporting Features

• Services available: Fully managed payroll, DIY software, HR software
• Contracts available: Bespoke
• CIPP PAS-accredited: Yes

Why we recommend MHR

MHR boasts some of the most powerful reporting and analytics capabilities on the market. Reports cover anything from salary modelling to insights on employee engagement and performance management. You can, of course, also build custom reports to suit your needs.

For business owners keen on making the most out of their employee data, this is a key asset. However, we note that, due to its sheer breadth, this makes MHR more suited to large businesses, as such deep reporting prowess is likely to be lost in smaller organisations.

One of MHR’s unique features is its emergency payroll support features, where MHR will step in to provide added consultation if your team is feeling overwhelmed. This extra support is helpful for businesses that are going through complex changes or a wider expansion.

If you don’t want to outsource your payroll services fully, MHR is a good choice, as it offers you the choice to opt for in-house, outsourced payroll, or a combination of the two. This makes MHR more flexible than a solely fully-managed provider such as TopSource and means you’re free to pick the right option for your business’s unique needs.

What MHR could improve

MHR doesn’t offer live training sessions to ease your onboarding process, unlike OneAdvanced and Payescape. This could pose an issue if you need your team to operate this software to its full potential.

It also doesn’t offer its customers advice on how to stay compliant with payroll laws, something Moorepay, Payescape, and ADP all do. This could be a real issue if you’re not well-versed in the latest legislation.

7. Payescape: Best for Businesses Looking for Short Contracts

• Services available: Fully managed payroll, HR software
• Contracts available: Rolling monthly
• CIPP PAS-accredited: Yes

Why we recommend Payescape

Payescape offers the most flexible contract among the providers our researchers looked into, since it lets you sign up for a 30-day rolling contract. This lack of a long-term commitment makes it suitable for small businesses that are finding their feet and don’t want to be tied to a contract.

The provider offers payroll, HR, and time management solutions all on one platform, giving you a streamlined and efficient way to manage your business. You can approve and monitor holidays, record working hours, and calculate wages with this provider.

When paying contractors, it’s important to ensure you’re tracking working hours correctly. Payescape’s time management solutions, which are built into the platform, make it easy for you to prevent under- or overpaying an employee. They also mean you can manage compliance risks and projects more effectively.

Although Payescape no longer advertises its prices, it still tends to be cheaper than competitors such as ADP and MHR, which makes it a natural choice for businesses that want to save their pennies.

What Payescape could improve

Payescape doesn’t manage payroll for international employees, unlike ADP.  Similarly, its reporting features aren’t as advanced as MHR’s, which allows for greater customisation and detail retrieval from tasks like cost analysis, while Payescape doesn’t.

How Much Does Payroll Outsourcing Cost for a Small Business?

Prices vary a lot, but as a general guide, a business with 10 employees can expect to pay:

• £70-£80 a month for a fully managed service with hosted software
• £40-£60 for simple outsourcing

Generally, the fewer employees, the higher your per-person payroll costs will be. For more details, see our guide to payroll outsourcing costs.

What Are the Different Types of Payroll Solutions?

Payroll solutions involve you outsourcing some or all of your payroll administration work to a specialist third-party company. Choose between:

Fully-managed payroll service

It does what it says on the tin. Full service payroll companies take full control of all aspects of payroll — from paying employees, to issuing payslips, generating reports, and filing papers with HMRC. You can rest easy knowing your business is fully compliant with regulations.

Part-managed payroll service

A service provided by a ‘payroll bureau’ and a helping hand for businesses that want to retain some control of the process. Imagine you’re happy to continue paying your staff, but you’d like a bit of help when it comes to filing documents at the end of the tax year. A payroll bureau offers you that kind of flexibility – and at a bargain price compared to a fully managed option.

Hosted payroll software

A secure and efficient way of storing and updating data. Even if you have an experienced bookkeeper working for you in-house, your business could benefit from cloud-based payroll software. Set up alerts for missing or required data, or easily distribute payslips via email. You can track expenses, claims, and benefits safely in the knowledge that everything is backed up on secure servers.

Payroll Outsourcing: What Are the Benefits?

Five reasons why outsourcing your payroll makes total sense for small business owners:

1. It will save you money. Outsourcing payroll is cheaper than hiring trained staff to do the work in-house, and small businesses can benefit from these savings.
2. It will save you time. Pension, tax, BACS, payslips, National Insurance, RTI, reporting, holiday, benefits — just a few of the things you’ll need to take care of if you choose to handle payroll yourself, on top of running your business.
3. It reduces errors. Payroll errors can lead to heavy penalties and fines from the government and decrease employee satisfaction. Outsourcing payroll to the experts reduces this risk.
4. It reduces the risk of payroll fraud. Sophisticated payroll software and trusted experts can alert you to time and rates abuse and other shady dealings. Plus, most payroll fraud occurs when payroll is handled in-house, so outsourcing is a way to reduce this risk.

Should small businesses use a payroll service or payroll software?

The answer depends on your time, budget, and number of employees.

When to use payroll software:

Payroll software is generally a better option for micro-businesses with between one and 50 employees, although you could use it for up to 100 employees if you hire any in-house payroll experts.

That’s because it’ll generally be cheaper and simpler to pay for payroll software than use an outsourced payroll service when you have a low employee count.

When to use a payroll service:

As your employee numbers grow, payroll becomes more time-consuming and more costly if you choose to do it in-house since you’ll need to hire more payroll experts. This is generally the reason why businesses with over 50 employees choose to outsource their payroll.

If you still want some oversight into payroll, you can choose a partly managed service over a fully managed service. Partly-managed payroll services are also cheaper, although you’ll need to weigh the costs of doing more payroll work in-house against the savings you make.

Upcoming Payroll Dates for 2025/2026 Tax Year

Using a professional payroll provider can help you keep important deadlines, but it’s still good to be aware of important payroll dates.

To help you out, here’s a brief recap of the most important payroll dates this tax year:

Legislation changes to bear in mind

New legislation has just come into effect in the 2025/2026 tax year that will affect payroll for some businesses. Here’s what you need to know:

National Minimum Wage (NMW) and National Living Wage (NLW) increase

As of April 2025, the National Minimum Wage (NMW) for employees aged between 18 and 20 years has increased from £8.60 an hour to £10 an hour. For employees aged between 16 and 17 years, the NMW has increased from £6.40 an hour to £7.55 an hour.

The separate rate that exists for eligible apprentices under 19 years old has also increased from £6.40 up to £7.55 an hour.

The National Living Wage (NLW), applicable to employees 21 and over, has increased from £11.44 an hour to £12.21 an hour.

If you currently have employees on the NMW or NLW, you must make sure you have increased their salaries to reflect the changes from April 2025. Not doing so breaks employer law and can result in fines of up to £20,000 for each affected employee.

Employer National Insurance Contributions (NICs) increase

There are three major changes to NICs for businesses. As of April 2025, the NIC rate for employers has risen from 13.8% to 15%, meaning employers must pay more in contributions.

There is also a change to ranges. The secondary threshold has dropped from £9,100 to £5,000. This means employers have to start paying NCIs on earnings starting at £5,000.

However, there’s also some positive news. Before the 2025/2026 tax year, businesses with an NIC bill of £100,000 or less were able to take £5,000 off their employer NIC bill, thanks to the Employment Allowance. However, as of April 2025, this has increased from £5,000 to £10,500, and is available to more businesses since the government has removed the £100,000 limit.

How We Ranked Payroll Products and Services for Small Businesses