"Payroll provider" covers three different things in the UK: a bureau or accountant who runs payroll for you, software you run yourself, and tools that only produce payslips. Which one you need depends on who will send the Full Payment Submission to HMRC every payday. This post sets out the employer's duties from GOV.UK, compares the options using each provider's published prices, and is clear about where a payslip-only tool like PayDocs stops.
What every UK employer has to do each payday
GOV.UK's running-payroll guidance lists the jobs, whoever does them. On or before each payday you record the employee's pay, calculate deductions such as tax and National Insurance, produce a payslip for each employee, and report pay and deductions to HMRC in a Full Payment Submission (FPS). You then pay HMRC by the 22nd of the next tax month (the 19th if you pay by post), and send an Employer Payment Summary (EPS) by the 19th if you're claiming a reduction or paid no one that month.
Payslips are their own legal duty. GOV.UK says employers must give employees a payslip on or before payday, on paper or electronically, showing pay before and after deductions, each deduction that can vary, and hours where pay varies with time worked. The running-payroll guidance also notes you can use different software for payslips if your payroll software doesn't produce them.
Full Payment Submission (FPS) Employer Payment Summary (EPS)
The three routes
| Job | Bureau or accountant | Payroll software you run | Software plus a payslip tool |
|---|---|---|---|
| Calculate PAYE and NI | Bureau | Software | Software (the payslip tool may also calculate) |
| Send the FPS to HMRC on or before payday | Bureau | Software | Software |
| Produce payslips | Bureau | Software, if it can | Payslip tool |
| Pay employees and HMRC | You, or the bureau if it offers it | You | You |
| Pension auto-enrolment | Bureau, usually | Depends on the product | Your software or pension provider |
| Year-end P60s | Bureau | Software | Software or a P60 tool |
HMRC won't recommend a product. GOV.UK says it cannot recommend one software product or service over another and is not responsible for problems with software you've bought. What it does publish is a list of HMRC-recognised payroll software, updated on 24 September 2026, split into free and paid products.
Published prices for payroll software
| Sage Payroll Essentials | Xero (payroll on accounting plans) | Moneysoft Payroll Manager 20 | BrightPay | HMRC's free list | |
|---|---|---|---|---|---|
| Price | £12 a month excl. VAT after a 3-month offer | Ignite £18 a month plus £1.50 per person; Grow £39 includes 1 person | £95 a year excl. VAT | Not published; price on request | Free |
| Employees included | 5; more from £2.40 each a month | Ignite: per person; Grow: 1; Comprehensive (£55): 5 | Up to 20, including leavers | Not stated | Fewer than 10 employees |
| Where it runs | Cloud | Cloud | Windows 11 only | Cloud; the Windows version ended after 5 April 2026 | Varies by product |
| Comes with | Payroll only | Accounting software | Payroll; annual licence with updates and email support | Payroll, with bureau and accountant features | Payroll; products include Basic PAYE Tools |
| Payslips | Listed as a feature | Not stated on the pricing page | Not stated on the prices page | Not stated on the page | Check each product |
Checked 4 October 2026. From sage.com/en-gb/sage-business-cloud/payroll, xero.com/uk/pricing-plans (prices excl. VAT; 90% off for the first 6 months at the time), moneysoft.co.uk/prices, brightpay.co.uk and gov.uk's list of HMRC-recognised payroll software. Introductory offers change often.
For one employee paid monthly, list prices work out at about £12 a month on Sage Payroll Essentials, £19.50 on Xero Ignite (if you'd pay for Xero's accounting anyway, the payroll part is £1.50), and about £7.92 a month for Moneysoft's annual licence. HMRC's free list includes Basic PAYE Tools and five other products for businesses with fewer than 10 employees.
Payroll bureaus and accountants
A bureau or accountant runs the whole process: calculations, FPS, payslips, P60s, often auto-enrolment, and answering HMRC letters. Bureau pricing is almost always quoted per payslip or per pay run rather than published, so ask for a quote that states the price per employee per run, what's included at year end, and whether starters, leavers and statutory pay cost extra.
- Good fit: you'd rather not touch payroll at all, you pay several people, or you already pay an accountant who offers it.
- Less suited: one employee on the same salary every month, where the bureau's minimum charge can exceed what software costs.
When payslips are the only gap
Many micro employers end up with software that reports to HMRC but doesn't produce a payslip they're happy to hand over, or none at all. Household employers paying a nanny or carer, and directors running a one-person payroll, are the usual cases. Since GOV.UK lets you use different software for payslips, the cheapest complete setup is often free HMRC-recognised software for the FPS plus a separate payslip tool.
The PayDocs guides on free payroll software and payslip software cover that pairing in more detail, including what HMRC's Basic PAYE Tools does and how payslip tools compare.
Where PayDocs fits
PayDocs makes UK payslips and P60s from your figures. PayDocs works out PAYE income tax, National Insurance and supported deductions for 2026/27 pay dates, with every line editable. Previewing is free; the PDF price is £3.99 per payslip once checkout opens, less in packs of 4 or 12, and pack credits never expire.
PayDocs is not payroll software and not HMRC-recognised. It doesn't send the FPS or EPS, pay HMRC, run auto-enrolment or pay your staff. Pair it with HMRC-recognised software, or use a bureau if you want all of it done for you.
Questions
What is the cheapest payroll software in the UK?
HMRC lists free recognised payroll software for businesses with fewer than 10 employees, including its own Basic PAYE Tools. Of the paid products we checked on 4 October 2026, Moneysoft Payroll Manager 20 was £95 a year excluding VAT for up to 20 employees.
Do I need a payroll bureau for one employee?
No. You can run payroll yourself in HMRC-recognised software, which sends the Full Payment Submission on or before each payday, and give the employee a payslip. A bureau is a convenience, not a requirement.
Does HMRC recommend a payroll provider?
No. GOV.UK says HMRC cannot recommend one software product or service over another. It publishes a list of HMRC-recognised payroll software, with free and paid sections.
Can I use one product for payroll and another for payslips?
Yes. GOV.UK's running-payroll guidance says to produce payslips for each employee and that you can use different software if yours doesn't.
Sources
- GOV.UK: Running payroll
- GOV.UK: Payslips
- GOV.UK: Payroll software
- GOV.UK: Find payroll software that is recognised by HMRC (updated 24 September 2026)
- Sage UK: Sage Payroll pricing
- Xero UK: Pricing plans
- Moneysoft: Prices
- BrightPay UK: BrightPay for Windows
Sources checked 4 October 2026. This article explains how pay documents work; it is not tax or legal advice.
