Best 7 Cloud-Based Payroll Software in 2025

Man sitting at desk with files, calculator, and laptop.

Our site is reader-supported – by clicking our links, we can match you with a potential supplier, and we may earn a small commission for this referral.

Our independent research found that Staffology Payroll by Iris is the best cloud-based payroll software on the market. It offers hands-on training, comes with an intuitive mobile app, numerous integrations, and highly secure data processing. Plus, pricing is transparent, a rarity in the payroll industry.

All businesses have three options for paying their staff: fully-managed UK payroll services, part-managed payroll services, or using payroll software to manage payroll in-house.

Cloud-based payroll software enables you to securely manage employee data, comply with the latest legislation, and run payrolls automatically from any device with an internet connection, unlike on-premise software.

What are the best cloud-based payroll software solutions?

1. Staffology Payroll by Iris – Best cloud-based payroll software overall
2. ADP – Best for security
3. MHR – Best for reporting
4. Frontier – Best for international businesses
5. OneAdvanced – Best for training
6. Moorepay – Best for expertise
7. 1 2 Cloud – Best free payroll software

These are the providers we recommend based on our extensive research. Clicking on any will bring you to our comparison tool where you can find the best payroll software for your business needs. Read our methodology to learn how we decide upon this ranking.

The Best Payroll Software Platforms: Key Takeaways

  • Staffology Payroll by Iris is our top-rated cloud-based payroll software, with transparent pricing starting at £39 per month, and a large number of accounting and HR integrations.
  • Other top-rated cloud-based software platforms include ADP, our top pick for security, and MHR, which offers extensive payroll reporting.
  • When choosing a payroll software provider, make sure it’s HMRC compliant, and can either integrate with your existing software or offers native people management tools, such as HR software.
  • Switching to a new payroll software provider can take between a few weeks and a month, and the best time to switch is before the new tax year in April.
  • In the 2025/2026 tax year, the national minimum wage, national living wage, and statutory maternity and paternity pay all increased, so make sure you’ve updated your payroll accordingly to avoid fines.

For a quick summary of what each top-ranked payroll software provider offers, see the table below:

Swipe right to see more
0 out of 0

12 Cloud

Best

Not yet assessed

Best

Cloud-based payroll software overall

Best

For security

Best

For reporting

Best

For international businesses

Best

For training

Best

For small businesses

Price Range
Price Range

From £39/month

Price Range

Bespoke

Price Range

Bespoke

Price Range

Bespoke

Price Range

Bespoke

Price Range

£5 – £200/month

Pros
  • Advanced automation made easy
  • Fully HMRC-recognised and RTI-compliant
  • Effortless insights after every pay run
Pros
  • Plentiful accounting and HR integrations
  • Transparent pricing
  • Extensive training features
Pros
  • Allows for custom reporting
  • Customer service is available via phone and live chat
  • Offers tax education resources
Pros
  • Allows for custom reporting
  • Allows for payroll data to be shared across different systems
  • Customer service is available via phone and live chat
Pros
  • Offers live training
  • Allows for custom reporting
  • Customer service is available via phone and live chat
Pros
  • Provides live training and CIPP-accredited expert advice
  • Allows for custom reporting
  • Customer service is available via phone and live chat
Pros
  • Provides live training
  • Transparent pricing
Cons
  • Most pricing only available through quoting
  • Help is not available through chatbot, only via calling
Cons
  • Doesn’t provide payroll changes report
  • Clock-in feature isn’t available on mobile app
Cons
  • Doesn’t provide payroll changes report
  • Pricing only available through quoting
  • Help is not available through chatbot
Cons
  • Pricing only available through quoting
  • Help is not available through chatbot
Cons
  • Doesn’t provide open API, preventing integration
  • Pricing only available through quoting
  • Help is not available through chatbot
Cons
  • Doesn’t provide open API, preventing integration
  • Pricing only available through quoting
  • Help is not available through chatbot
Cons
  • Limited third-party integration
  • Help is not available through chatbot
Learn More Compare Quotes Compare Quotes Compare Quotes Compare Quotes Compare Quotes Compare Quotes

1. Staffology Payroll by Iris: Best Cloud-based Payroll Software Overall

iris staffology logo blue
Iris Staffology
Pricing From £39/month
Quick overview

Staffology is a HMRC-recognised payroll software, which makes submitting the necessary forms online that much more seamless. Created in 2018, it was acquired by software powerhouse Iris in 2021, being rebranded as Iris Staffology.

Its cloud-based interface allows you to control your payroll from both desktop and mobile hardware, as well as modify the program to suit your needs. For business owners who’d like to extend its capabilities, it also packs a native HR solution.

Strengths

Plentiful accounting and HR integrations

Transparent pricing

Extensive training features

Weaknesses

Doesn't provide payroll changes report

Clock-in feature isn't available on mobile app

Pricing
FeesPrice
1 to 19 payslips £39/month
20 to 50 payslips £39/month + £1.95/payslip/month
51 to 10,000+ payslips Quote-based

What are Staffology Payroll by Iris’ key features?

  • From £39 per month
  • Live training
  • Customisable reporting tools including payslips, HMRC, pensions, tax, P11D, audits, and BACS
  • Unlimited users, employees, and companies (for a price)
  • GDPR and RTI compliant for HMRC with annual confidentiality training for staff, including CIPP-accredited payroll managers
  • Employee mobile app
  • Demo and free traial available
iris staffology payroll
Iris Staffology's payroll dashboard looks clean and has handy details clearly signposted, including the month's pay timeline - Source: Expert Market

Our verdict on Staffology Payroll by Iris

Staffology Payroll by Iris is available from £39 per month, and is one of the rare payroll software providers to advertise its pricing. This is useful for small businesses with a limited budget and who want to move forward fast, without going through a quote process. The only other provider on this list to offer transparent pricing is 1 2 Cloud Payroll, which charges between £5 and £200 per month.

Perhaps even more appealing is that it packs more accounting and HR integrations than any of the providers we researched (seven and five, respectively) – which allows it to work alongside more programs than ADP (three and three) or MHR (one and three). Business owners who want to keep their current accounting or HR software and integrate it with Staffology Payroll by Iris will benefit massively from this.

However, there are some downsides. Some users have commented on Staffology’s poor customer support, citing a lack of telephone support, though our research has shown the Payroll arm of Staffology does have a customer support line to contact for any queries.

How much does Staffology Payroll by Iris cost?

Staffology Payroll by Iris has a starting price of £39 per month. Here’s what you’ll pay based on employee numbers:

Swipe right to see more
0 out of 0

1 to 19 payslips

20 to 50 payslips

51 to 10,000+ payslips

Price Range

£39/month

Price Range

£39/month + £1.95/payslip/month

Price Range

Quote-based

Updates to Staffology Payroll in 2025

Staffology launched a few updates in time for the new tax year. It launched supplementary pay runs (the ability to have additional pay runs that take place after the main pay run is completed) and a report writer (building custom report templates to use before you start your next pay runs).

2. ADP: Best Payroll Software For Security

Quick overview

ADP is a business solutions giant, offering both payroll and HR services to help your business. Founded in 1949, its industry cred is second to none: in the Global Payroll Awards 2023, ADP was crowned Global Payroll Supplier of the Year for the second consecutive year in a row. It also was named the Best International Payroll Service Provider at the CIPP Annual Excellence Awards for four consecutive years. With offices in the City, it's among the best payroll companies in the UK and London we analysed.

Strengths

Allows for custom reporting

Customer service is available via phone and live chat

Offers tax education resources

Weaknesses

Doesn't provide payroll changes report

Pricing only available through quoting

Help is not available through chatbot

Pricing
Custom
Based on factors such as number of employees and the solutions you need

What are ADP’s key features?

  • HR, recruitment, benefits management, and learning management software/solutions also available
  • CIPP-accredited expert payroll advice
  • GDPR and RTI compliant for HMRC
  • Time and attendance keeping features
  • Employee mobile app
  • Demo available
ADP payroll dashboard
ADP Payroll's dashboard is also pretty aesthetically charming, with a simple navigation bar with dropdowns and good use of colour - Source: ADP

Our verdict on ADP payroll software

Following extensive testing, we can conclude that ADP is a payroll provider that’s big on security, attested by its ISO 27001 certification (something Qualitas Payroll Service doesn’t have) and its efficient data encryption. Also, unlike OneAdvanced, it wasn’t hit by any data breaches in the last two years.

Besides payroll software, ADP offers other people management software, which integrate easily with its payroll solution. These include HR and benefits management platforms. This is an advantage for businesses keen on keeping the number of their suppliers low.

ADP also has a time and attendance feature, which can be used as a clock-in system, great for companies that employ hourly or shift-based employees.

That said, ADP isn’t perfect. For example, it doesn’t provide payroll change reports, despite offering extensive reporting tools, something competitor MHR does offer. Plus, unlike Staffology Payroll, ADP isn’t transparent with its pricing.

How much does ADP cost?

You’ll need to contact ADP directly for a quote as its pricing is dependant on factors such as payroll frequency and the number of employees you have.

3. MHR: Best Payroll Software For Reporting

MHR logo
MHR
Bespoke
Quick overview

MHR boasts one of the most sophisticated hosted payroll software programs in the industry, iTrent. iTrent combines powerful payroll processing capabilities with time-saving HR functions to create a central business hub for employee data. It won CIPP's Software Product of the Year Award in 2023 (although lost out to Zellis in 2024).

Founded in 1984, the company's now used by big names such as Microsoft Azure and Experian. In our independent analysis, our experts found MHR to be a good choice for business owners who want the flexibility of choosing between running payroll in-house, outsourcing or a combination of the two.

Strengths

Allows for custom reporting

Allows for payroll data to be shared across different systems

Customer service is available via phone and live chat

Has CIPP PAS accreditation

Weaknesses

Pricing only available through quoting

Doesn't provide advice on how to stay compliant

Pricing
Custom
Based on factors such as number of employees and the solutions you need

What are MHR’s key features?

  • Highly detailed reporting
  • Educational material for businesses
  • CIPP-accredited expert payroll advice
  • GDPR and RTI compliance for HMRC
  • Employee mobile app
  • Demo available
MHR software in use showing payroll
Here's an example of MHR Payroll's analytics features in action in their payroll software interface - Source: MHR

Our verdict on MHR payroll software

MHR’s iTrent payroll software has one of the most detailed report-generating payroll software programs on the market. In our testing, we used it to track KPIs, assess risks, establish costs, and produce legislative reports, and it excelled in all those tasks, with the bonus that you can action them through the same platform.

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.

Unfortunately, MHR doesn’t offer many accounting and HR integrations. It packs only one and three, respectively, way less than Staffology Payroll by Iris (seven and five). This is bad news for business owners who want to coordinate payroll with these related activities.

For its part, however, MHR makes it easy for payroll data to be shared with different systems, which mitigates the lack of integration to some degree.

If you’d like to find out more about the platform’s features, check out our MHR Payroll review.

How much does MHR cost?

You can fill out a quick from on MHR’s website to get an accurate quote.

Save by comparing services quotes from leading suppliers
Do you use cloud-based payroll software already?
It only takes a few clicks!

4. Frontier: Best Payroll Software For International Businesses

frontier payroll logo
Frontier
Pricing Bespoke
Quick overview

Our extensive testing process found that Frontier offers solid reporting tools for businesses keen on getting payroll data insights. Established in 1983, it now helps over 1,700 customers, from small to very large enterprises. Its payroll tools, which provide statutory taxation obligations in 26 countries, make it a good choice for international businesses.

However, Frontier doesn't provide an open API, which may be limiting for businesses that want to integrate their payroll data with other systems.

Strengths

Offers live training

Allows for custom reporting

Customer service is available via phone and live chat

Has CIPP PAS accreditation

Weaknesses

Doesn't provide open API, preventing integration

Doesn't provide advice on compliance

Help is not available through chatbot

Pricing
Custom
Based on factors such as number of employees and the solutions you need

What are Frontier’s key features?

  • Native HR software
  • Payment of international employees
  • GDPR and RTI-compliant for HMRC
  • Payroll changes reporting
  • Employee mobile app
  • Demo available

Our verdict on Frontier payroll software

Frontier allows payment of international employees – a must if you have staff across different countries. Among the providers we tested, Frontier shares this feature with Staffology Payroll by Iris and ADP, but beats out OneAdvanced and Moorepay, which don’t come with this capability.

Its international payroll features include multi-language and multi-currency capabilities. Paired with its employee self-service mobile app, and Frontier is a great option for businesses looking to make payroll accessible to employees, wherever they are in the world.

On the other hand, like OneAdvanced, Frontier doesn’t provide an open API, dealing a killer blow to business owners hoping to integrate with their own HR and accounting software. For those, ADP will be a better choice. Also, like MHR, it doesn’t offer advice on how to stay compliant with payroll laws.

Find out more about this provider’s features in our in-depth Frontier payroll review.

How much does Frontier cost?

Frontier’s pricing is bespoke so you’ll need to contact the provider directly for accurate pricing.

Frontier data breaches

Frontier has been on the end of a couple of cyber attacks in recent years, including around 80,000 customers in 2022 and 751,895 affected customers in June 2024.  In both instances, only personal information was impacted, rather than financial details.

In response to the latest breach, Frontier shut down a number of its internal systems that were compromised by a third party, and the issue is considered resolved. It also offered its customers one year of complimentary credit monitoring and identity theft resolution services.

These instances aren’t out of the norm for large-scale communications firms like Frontier, but it is worth knowing these instances ahead of selecting the payroll company for you.

5. OneAdvanced: Best Payroll Software For Training

Oneadvanced logo
OneAdvanced Payroll
Pricing Bespoke
Quick overview

OneAdvanced is an efficient cloud-based payroll software currently used by over 22,000 customers globally. Its training offering is a key asset, making it a great choice for businesses keen on implementing and getting a hold of the system quickly. Like Moorepay, it packs both fully-managed and part-managed services.

OneAdvanced offers integration with HR, attendance and finance solutions, providing you with one comprehensive platform. In fact, we found it to be one of the best providers to integrate HR and payroll.

Strengths

Provides live training and CIPP-accredited expert advice

Allows for custom reporting

Customer service is available via phone and live chat

Weaknesses

Doesn't provide open API, preventing integration

No employee mobile app

Help is not available through chatbot

Pricing
Custom
Based on factors such as number of employees and the solutions you need

What are OneAdvanced’s key features?

  • Pensions auto-enrolment software as standard
  • In-depth reporting that is GDPR and RTI compliant for HMRC
  • Integration with other OneAdvanced business software products
  • Dedicated support centre with 300 CIPP-accredited staff
  • Demo available
advaned payroll cycle
Advanced's payroll cycle view - Source: Advanced

Our verdict on OneAdvanced payroll software

During our extensive testing process, we were impressed by OneAdvanced’s training prowess, which makes it great if you’re running a small accounting team. In that regard, it beats Moorepay by having a live training feature. However, Staffology Payroll by Iris also offers this.

OneAdvanced also provides integrations with its wide native suite of other applications, like ADP. These include HR, scheduling, recruitment, talent management software, as well as time and attendance. This wide suite of people management software makes OneAdvanced a great one-stop shop for businesses.

Similarly to MHR, OneAdvanced also offers in-depth reporting, such as the ability to create custom reports, which can especially benefit larger companies.

However, OneAdvanced lacks the free trial that Staffology Payroll by Iris offers, which, combined with the fact that its pricing is bespoke, can delay knowing if it’s right for you.

It also lacks the mobile app that many of its competitors (such as Staffology Payroll by Iris and Moorepay) offer. And as far as data security goes, it could be better: of all the providers we researched, it’s the only one that had a data breach in recent years, being a victim of a ransomware attack in 2022.

How much does OneAdvanced cost?

You’ll need to contact OneAdvanced directly as it only offers bespoke pricing.

How does cloud-based payroll software pricing work?

Unlike traditional desktop-installed programs, cloud-based payroll software is charged on a monthly basis, which reduces your upfront costs massively.

It allows you to file PAYE reports with HMRC in real-time, ensuring your business stays fully compliant with industry regulations. There are clever tools for calculating pay and, crucially, information is stored online where it’s available to access at any time, from anywhere.

6. Moorepay: Best Payroll Software For Expertise

moorepay logo
Moorepay
Pricing Bespoke
Quick overview

Moorepay provides a cloud-based integrated payroll and HR platform, which allows companies to easily analyse employee data and generate reports. Established in 1966, it packs both part-managed and fully-managed services and is accredited by the CIPP Payroll Assurance Scheme (PAS).

Winner of CIPP's Payroll Service Provider of the Year Award in 2023, Moorepay boasts big names as clients, such as McDonald's, Volkswagen and Mountain Warehouse. It's also rated Excellent on Trustpilot, with an impressive 4.5/5 score.

Strengths

Has CIPP PAS accreditation

Allows for custom reporting

Customer service is available via phone and live chat

Offers self-service mobile app

Weaknesses

Pricing only available through quoting

No live training

Can't manage international payees

Pricing
Custom
Based on factors such as number of employees and the solutions you need

What are Moorepay’s key features?

  • CIPP-accredited payroll advice
  • Large suite of HR/people management solutions
  • Tax-related educational resources
  • GDPR and RTI-compliant for HMRC
  • Employee mobile app
  • Demo available
moorepay employee details
Moorepay's employee pay details - Source: Moorepay

Our verdict on Moorepay payroll software

Moorepay boasts an array of consultants ready to give insightful information to its customers, making it ideal for businesses that require hands-on guidance. Like ADP, Moorepay provides CIPP-accredited expert payroll advice and offers tax-related educational resources.

This makes it a great option for businesses that don’t have a large in-house payroll team or are relatively new to payroll and need expert guidance.

Additionally, Moorepay packs a large suite of other people management software, besides payroll. This includes HR, benefits management, performance management, recruitment, and more.

However, when testing the software, we found that, unfortunately, Moorepay doesn’t allow for the payment of international employees, nor does it offer live training, features that Frontier offers. Also, it lacks transparent pricing, unlike 1 2 Cloud Payroll and Staffology Payroll.

How much does Moorepay cost?

Moorepay’s pricing is based on factors including processing, add-ons, and setup. You’ll need to contact Moorepay directly for a bespoke quote – or if you want to learn more about the provider, check out our Moorepay payroll review.

7. 1 2 Cloud: Best payroll software for small businesses

12 Cloud Payroll logo
12 Cloud
Pricing From £5/month
Quick overview

12 Cloud is one of the best providers for small businesses, with pricing that starts at £5 a month for 1-2 employees. It offers a comprehensive payroll software actioned through a feature-rich dashboard. One feature we particularly like is the “rollback facility”, which makes it easy to correct mistakes and re-run pay with minimal effort.

Our experts were satisfied with 12 Cloud's data security: the provider is ISO 9001-accredited, which means its standards are on par with the best in the industry.

Strengths

Provides live training

Transparent pricing

ISO 9001-accredited

Suitable for small businesses

Weaknesses

Limited third-party integration

Help is not available through chatbot

Pricing
Company sizePrice
1 to 2 employees £5 per month
3 to 5 employees £10 per month
6 to 9 employees £15 per month
10 to 15 employees £25 per month
16 to 20 employees £30 per month
21 to 30 employees £40 per month
31 to 50 employees £50 per month
51 to 80 employees £60 per month
81 to 100 employees £70 per month
101 to 120 employees £80 per month
121 to 150 employees £100 per month
151 to 200 employees £120 per month
201 to 300 employees £150 per month
301 to 500 employees £200 per month
500+ employees £0.5 per employee, per month

What are 1 2 Cloud’s key features?

  • From £5 per month
  • Free phone support within working hours
  • GDPR and RTI compliance for HMRC
  • “Rollback facility” for easily amending errors in pay
  • Demo available

Our verdict on 1 2 Cloud payroll software

1 2 Cloud is an HMRC-approved payroll software provider suitable for small businesses, thanks to its transparent pricing packages. Pricing starts at a fixed rate of just £5 per month for one to two employees, going up to £200 per month for up to 500 employees.

When testing the software, our researchers liked its intuitive dashboard layout, similar to ADP’s. This makes it accessible to non-payroll experts using payroll software for the first time.

On the flip side, 1 2 Cloud doesn’t pack a lot of integrations: it only syncs up with Sage on the accounting front. As far as accounting integration goes, this is the same offer as Moorepay’s, but that competitor also allows for HR and time and attendance integration (which 1 2 Cloud doesn’t).

Find out more about the provider’s strengths and weaknesses in our 1 2 Cloud Payroll review.

How much does 1 2 Cloud cost?

1 2 Cloud charges a fixed monthly subscription price to businesses with between 1 and 500 employees, and charges per employee for any company over 500.

Here’s a breakdown:

  • 1-2 employees: £5/month
  • 3-5 employees: £10/month
  • 6-9 employees: £15/month
  • 10-15 employees: £25/month
  • 16-20 employees: £30/month
  • 21-30 employees: £40/month
  • 31-50 employees: £50/month
  • 51-80 employees: £60/month
  • 81-100 employees: £70/month
  • 101-120 employees: £80/month
  • 121-150 employees: £100/month
  • 151-200 employees: £120/month
  • 201-300 employees: £150/month
  • 301-500 employees: £200/month
  • 500+ employees: £0.5/employee/month

Other charges to watch out for with 1 2 Cloud Payroll:

  • P11D Returns: £5/P11D employee/year
  • P11D(b) Returns: £10/company/year
  • CIS usage cost: same as payroll pricing

How to Choose Payroll Software: Buying Guide

Managing payroll can be a complicated and time-consuming task for businesses of all sizes. To pick the right software, it’ll need to have a handle on all the features that will make that process easier from dealing with taxes, pensions, and statutory deductions to the core functionality of paying employees accurately and on time.

Here are the features we believe you should look out for:

HMRC compliance

A basic functionality, and one that we have made sure is a part of all the options on this page, is compliance with HMRC regulations. This will allow for accurate tax calculations and reporting. Namely, the cloud payroll software should be able to:

  • Automatically update with the latest tax codes and thresholds.
  • Handle statutory payments such as SSP (Statutory Sick Pay) and SMP (Statutory Maternity Pay).
  • Submit RTI (Real Time Information) to HMRC.

Automation capabilities

You’ll want the software to make your life easier, automatically solving payroll tasks for you including:

  • Calculating PAYE (Pay As You Earn), National Insurance contributions, and pension deductions.
  • Generating payslips and P60s automatically.
  • Automatically updating payroll records when there are changes in tax laws or employee data.

Integration with other systems

Ideally, any payroll you choose will integrate with your existing software systems. This could include:

  • Accounting software: Integrations with systems like Xero, QuickBooks, or Sage ensure seamless flow of financial data.
  • HR tools: If you use HR software, ensure your payroll solution can synchronise with it to manage employee data, leave tracking, and expenses.

Pension auto-enrolment

Since pension auto-enrolment is a legal requirement for most UK employers, your payroll software must:

  • Automatically enrol eligible employees into a pension scheme.
  • Send the necessary communications to employees.
  • Deduct pension contributions and submit reports to your pension provider.

Ease of use

If you are using cloud payroll software instead of a payroll service, you and/or your team will be completing payroll tasks yourself. That means you’ll want software that has an intuitive, user-friendly interface. A clean, simple layout can save time and reduce the chance of errors, especially if you don’t have a dedicated payroll team.

Customer support

You never know when you might need some help with managing your payroll. Opt for software that provides comprehensive customer support through:

  • Phone, email, or live chat.
  • Online resources such as tutorials, webinars, and FAQs. Good support is crucial if you run into technical issues or need guidance on payroll processes.

Reporting

Reporting can allow you to easily break down where business spending is going on the payroll. That can be especially important for companies that are large and need a birds-eye view of their bulging payroll. Most software offers some kind of functionality here, including detailed reporting features like:

  • Payroll summaries and breakdowns.
  • Tax and National Insurance reports.
  • Pension contributions and RTI submissions. Reporting capabilities are essential for tracking expenses, auditing, and compliance.

Data security

Securing your payroll data is crucial since you need to comply with GDPR (General Data Protection Regulation) rules. Software that allows for this is therefore necessary to safeguard sensitive employee information. All the options we suggest on this page adhere to such standards.

Costs

And most crucial of all: how much will the software cost your business? This will vary depending on the pricing model of the software:

  • Subscription-based: Most cloud-based payroll software has monthly or yearly payments based on the number of employees or payroll runs you need.
  • Pay-per-use: Some software charges per payroll run or report generation. We suggest factoring in both upfront costs and ongoing fees and checking if there are any hidden costs for additional features or users.

What Are Important Payroll Dates For this Tax Year?

The current tax year is the 2025/2026 tax year, so here are the important payroll deadlines that your business needs to be aware of:

DateEvent
6 April 2025The 2025/2026 tax year begins.

Employee payroll must be up to date for the new tax year.

19 April 2025Deadline for final 2024/2025 tax year reports submission.
22 April 2025Deadline for the month 12 Pay-As-You-Earn (PAYE) payment.
31 May 2025Deadline for your employees to receive their P60s (earning statements) from the previous tax year (2024/2025).
6 July 2025Deadline for expenses and benefits report to the HRMC.

Deadline for P11D and P11D(b) forms submission.

19 July 2025Deadline for Class 1A National Insurance contributions on benefits in kind payment (if you’re not using digital systems to do so).
22 July 2025Deadline for Class 1A National Insurance contributions on benefits in kind payment (if you’re using digital systems to do so).
19 October 2024Deadline for businesses with a PAYE Settlement Agreement to pay all tax and Class 1B National Insurance owed (if you’re not using digital systems to do so – i.e. via cheque).
22 October 2025Deadline for businesses with a PAYE Settlement Agreement to pay all tax and Class 1B National Insurance owed (if you are using digital systems to do so).
6 April 2026Start of the new tax year 2026/27

Are There Any Changes to Payroll Legislation in 2025?

If you’re running payroll yourself with the help of cloud-based payroll software, it’s important to be aware of legislation changes that affect payroll. Here’s what you need to know:

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

From April 2025, the NMW for employees aged between 18 and 20 years increases from £8.60 an hour to £10 an hour. For employees aged between 16 and 17 years, the NMW increases 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 NLW (applicable to employees 21 and over) 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. From April 2025, the NIC rate for employers rises 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, from 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.

New rates for Statutory Maternity Pay and other parental leave

Rates for statutory maternity pay, paternity pay, shared parental pay, adoption pay, maternity allowance and statutory parental bereavement have all increased as of April 2025.

For maternity pay, it’s now 90% of the employee’s gross weekly pay per week, subject to a maximum of £187.18 per week (up from £184.03 per week) after the first six weeks. For paternity pay, it’s also £187.18 per week (up from £184.03 per week) or 90% of their average weekly earnings per week.

How We Ranked the Best Payroll Software

We regularly research a wide range of market-leading payroll products and services to evaluate them in terms of functionality, usability, data security and customer support so we can make the most useful recommendations for UK businesses.

Our rigorous research process means these products have been scored and rated in five main categories of investigation and 10 subcategories – in fact, we covered 56 areas of investigation in total. We then gave each category score a ‘relevance weighting' to ensure the product's final score perfectly reflects the needs and requirements of Expert Market readers.

Our main testing categories for payroll products and services are:

Control: The level of customisation and flexibility provided by the payroll software in managing and processing payroll, such as the ability to define pay periods, set up tax withholding rules and manage employee data.

Data security: The measures and protocols implemented by the payroll software to ensure the confidentiality, integrity and availability of sensitive payroll information.

Expertise: The level of knowledge and guidance provided by the payroll software vendor or support team. This can include resources such as documentation, tutorials and training materials.

Scalability: The ability of the payroll software to accommodate the growth and changing needs of a business, including the capacity to handle an increasing number of employees and support multiple locations or entities.

Customer support: The various channels and methods available for users to seek assistance and support from the payroll software vendor, such as email or ticket-based support, phone support, or live chat.

Verdict

Ahead of the new tax year in 2025, now is a great time to choose payroll software that suits your business needs best.

And while you’re spoilt for choice when it comes to good cloud-based payroll software, our testing revealed Staffology Payroll by Iris to be the best option overall. It’s comprehensive and feature-rich, with insightful reporting capabilities, extensive training features, and an impressive variety of HR and accounting integrations. Plus, its transparent pricing shows off its strong value for money.

Of course, Staffology Payroll by Iris might not necessarily be the best option for your business. If you’d like a more personalised recommendation, try our free quote-finding tool.

Simply answer a few questions about what you’re looking for in payroll software, and we’ll match you up with the best providers for your needs. They’ll then provide quotes that have been tailored to you – something that’s especially helpful in this industry, where prices are so often opaque and confusing. It’s an easy way to compare accurate prices and choose a software solution that suits your business.

Written by:
Rob Binns
Rob writes mainly about the payments industry, but also brings to the table industry-specific knowledge of CRM software, business loans, fulfilment, and invoice finance. When not exasperating his editor with bad puns, he can be found relaxing in a sunny (socially-distanced) corner, with a beer and a battered copy of Dostoevsky.
Reviewed by:
Headshot of Expert Market Senior Writer Tatiana Lebtreton
Tatiana is Expert Market's resident payments and online growth expert, specialising in (E)POS and merchant accounts, as well as website builders.

Receive Payroll Services quotes from leading suppliers in 3 simple steps!


1. Leave the hassle to us

Complete our short form in under a minute

2. We're completely free

Receive free quotes from leading brands

3. Save time & money

Save by comparing quotes

FAQs

What is Payroll Services?
Payroll services offer an affordable and simple way to pay your employees, file taxes, and carry out a bunch of other processes integral to your business. Payroll services can be fully or partially outsourced and payroll providers provide a number of services including automatically processing payroll calculations, filing deadlines, and dealing with deposits and withdrawals.
Who are the top providers?
There’s a vast range of payroll suppliers out there so it’s hard to narrow down exactly which is right for your business. We highly recommend Moorepay as one of the top payroll providers available. We’re also big fans of Mitrefinch and Payescape. Finding out which is right for your business is the most important step, which is why we match you with the best suppliers for you.
How do we work?
Our free quote-matching service is quick and easy to use:
  1. We’ll ask you a few questions about your business, so we can understand what you need.
  2. We’ll use your answers to match you with up to five trusted suppliers. This is why we ask for your contact details. Your details are safe with us – we are fully GDPR compliant and we’ll only ever match you with suppliers that we know can cater to your needs.
  3. Your matched suppliers will get in touch with you, so you can ask questions and receive quotes tailored directly for your needs. You’ll then be armed with all of the information you need to confidently compare, and choose from.