6 Best Payroll Software for Medium Businesses UK

If you are running a medium-sized business in the UK, then payroll is not something you can just wing anymore. Today, many businesses use payroll software to handle their payroll processes.

But with so many options, sometimes selecting the right software becomes a headache. That’s why I have researched and compared the best payroll software for medium businesses in the UK and compiled them in this blog. So you can compare features, pricing and pros and cons so you can find the right payroll provider today.

Quick comparison: Best Payroll software for medium-sized businesses

If you don’t want to go into details, here’s a quick comparison of the 6 best payroll software for medium-sized businesses in the UK:

6 Top Payroll Software for Medium Businesses in the UK [2026 edition]

Below is a closer look at the best payroll software for medium-sized businesses for UK businesses in 2026:

Zelt

Zelt runs payroll for growing UK businesses without the usual back and forth of chasing employee changes, fixing errors before submission day or manually working out pension deductions every month. It is an all-in-one platform too, but the payroll side alone is built to keep things accurate and on time.

Zelt key features

• Automated HMRC RTI submissions every pay run
• Pension auto-enrolment handled automatically, including contribution changes
• Payslips generated and shared automatically once payroll is approved
• Real time updates when an employee’s salary, role or bank details change, so nothing gets missed before the next run
• Custom payroll reporting by department, cost centre or pay period

Pros

• Reduces manual work around HMRC filing and pension calculations
• Payroll stays accurate even when employee details change mid-cycle
• Reporting is flexible enough for finance teams without needing a separate tool

Cons

• Newer platform compared to some legacy payroll providers.

What customers say

Pricing

Zelt’s modular pricing scales with your team. Plans start from around £5 per user per month, depending on the modules you choose (HR, payroll, performance, IT, etc.).

Best for

UK medium businesses that want payroll to run itself accurately every month, without chasing HMRC deadlines or pension calculations by hand.

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See how Zelt brings payroll, HR, and people management together in one connected platform.

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Sage Payroll

Sage has been doing UK payroll for a long time, and that shows in how solid its compliance side is. If your finance team wants something they already trust, this is usually on the shortlist.

Sage Payroll key features

• Automatic HMRC RTI filing
• Built-in pension auto-enrolment
• Payslip generation and distribution
• Integrates with Sage accounting products

Pros

• Long track record with UK tax and compliance rules
• Works well if you are already using Sage for accounting
• Wide network of accountants familiar with the platform

Cons

• Interface feels dated compared to newer tools
• Some users say support response times can be slow during busy periods

Pricing

Starts from $7/employee/month. Subscription-based, varies by tier and employee numbers.

Best for

Businesses that already use Sage accounting software or want a payroll provider with a long compliance history.

PayFit

PayFit has built a name for itself with a clean, modern interface that does not feel like old-school payroll software. It is popular with UK and European scale-ups that want automation without a steep learning curve.

PayFit key features

• Automated payslip generation
• Real-time payroll calculations as you update employee data
• Employee self-service portal
• Reporting dashboards for HR and finance
• PayFit pros and cons

Pros

• Easy to use, even for teams without a dedicated payroll specialist
• Strong automation reduces manual errors
• Good employee self-service experience

Cons

• Some advanced reporting needs may require add-ons
• Newer to the UK market compared to legacy players like Sage

Pricing

• Light plan: from ~£34/month (base fee + per employee)
• Standard plan: from ~£65/month (base fee + per employee)
• Premium plan: from ~£126/month (base fee + per employee)

Best for

Growing teams that want a modern, easy-to-use payroll tool without needing a full payroll department to run it.

MHR (iTrent)

MHR sits closer to the enterprise end, but a lot of medium businesses with more complex workforce structures use it too. If you have multiple pay grades, shift patterns or union agreements to manage, this one is worth a look.

MHR key features

• Combined HR and payroll on one system
• Complex pay structure support, including shift work and variable pay
• Detailed workforce analytics
• Compliance tools built for UK regulations

Pros

• Handles complex payroll scenarios that simpler tools struggle with
• Strong reporting for workforce planning
• Good fit if you are already managing HR through MHR

Cons

• Can feel like overkill if your payroll needs are straightforward
• Implementation can take longer than lighter tools

Pricing

Custom, enterprise-level quote. Speak to their sales team for a proposal based on your headcount and modules.

Best for

Medium businesses closer to the 200+ employee mark with complex pay structures or multiple locations.

Moorepay

Moorepay is a UK-based provider that leans into the idea of having actual humans support your payroll, not just software. If you like knowing there is a real team behind the numbers, this is a strong option.

Moorepay key features

• Managed payroll option where Moorepay handles the processing for you
• HMRC compliance and pension auto-enrolment
• HR software available alongside payroll
• UK-based support team

Pros

• Managed payroll option takes the admin off your plate entirely
• UK-based support, which helps when you need quick answers
• Good combination of software and human support

Cons

• Managed service can cost more than self-service tools
• Software interface is not as modern as some newer competitors

Pricing

HRMS module starts at £1.90/user/month. Fully bespoke, based on company size and service level

Best for

Businesses that want extra support from a UK-based team and do not mind paying a bit more for that peace of mind.

BrightPay

BrightPay has built a solid reputation with accountants and finance teams who care most about getting compliance right, every single time, without extra bells and whistles getting in the way.

BrightPay key features

• Automatic HMRC RTI submissions
• Pension auto-enrolment with multiple pension provider integrations
• Payslip and P60 generation
• Multi-company support, useful if you run more than one entity
• BrightPay pros and cons

Pros

• Known for accuracy and reliability with UK compliance
• Popular choice among accountants, so support and knowledge is easy to find
• Good value compared to some subscription-based competitors

Cons

• Interface feels more functional than modern
• Less focus on HR features compared to all-in-one platforms

Pricing

Starts from ~£125 / month. Annual license model; cost depends on edition and employee numbers.

If you want a broader overview of payroll tools available in the UK, read our blog on the Top Payroll software for UK businesses in 2025
Best for
Finance teams and accountants who want dependable, no-fuss payroll without paying for HR features they will not use.

Key features to look for in payroll software for medium companies

There are many features of payroll management software but let me share a few of them.

Ease of use

Nobody wants to spend three hours figuring out how to run payroll every month. Look for a system your team can actually pick up without needing a training course every time someone new joins the payroll team.

Tax and compliance automation

This is the big one for UK businesses. Your software needs to handle HMRC RTI submissions and pension auto-enrolment without you having to double-check everything by hand. A missed submission or wrong pension deduction can lead to fines, so this is not the place to cut corners.

Integration with existing systems

Your payroll software should talk to your accounting software, your HR system and ideally your time tracking tool too. Integrated hr and payroll software can save a lot of your time and you don’t need to switch between different tools.

Detailed reporting

As you grow past 50 employees, finance and leadership will start asking for reports you cannot pull together in a spreadsheet fast enough. Good payroll software should give you cost breakdowns, department-level reporting and year-on-year comparisons without extra work.

Scalability

What works for 60 employees might not work when you hit 150. Before choosing any software, ask the vendor first about the pricing and features when you grow. It can prevent you from switching again.

Cost-effectiveness

A slightly pricier tool that stops you from getting HMRC fines is usually worth it. That’s why you shouldn’t pick a vendor just because it’s cheaper than others. Always look first if the software you are choosing can handle your task and actually saves your time.

Manage Payroll for Medium-sized Businesses with Zelt

Running payroll in the UK means staying on top of HMRC deadlines, RTI submissions and pension auto-enrolment every single pay cycle, and getting even one of these wrong can cost you time and money. Zelt offers native UK payroll software that handles this automatically, so your payroll runs on time without you double-checking every number by hand.

Note: All information, pricing, and features mentioned in this article have been sourced from publicly available data and do not reflect Zelt’s views or opinions. We recommend verifying the latest details directly on their respective websites before making any decisions.

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Frequently Asked Questions

What is the best payroll software for a 50 to 250 employee UK business?

It depends on what you need alongside payroll. If you are a UK businesses and want HR and IT combined, Zelt is a strong option. If you want proven compliance history, Sage Payroll or BrightPay are solid choices. If your pay structures are complex, MHR is worth a look.