If your books are already in Xero, Sage or QuickBooks, the natural question is whether their payroll is worth adding just to produce payslips, and what it costs. All three run full PAYE payroll: they work out tax, National Insurance and pensions, send Real Time Information to HMRC, and give employees payslips. The difference is mostly in how each prices it for a business with one to five people. Figures come from each company's UK pages, read on 4 October 2026; we haven't tested the products, so there are no ratings.
What each costs for payroll and payslips
| Xero | Sage Payroll | QuickBooks | |
|---|---|---|---|
| Entry price with payroll | Ignite £18 a month + £1.50 per person paid | Payroll Essentials £12 a month for up to 5 employees | Accounting from £16 a month (Simple Start); payroll is an extra-cost add-on |
| Payroll included in the plan | Grow £39 (1 person), Comprehensive £55 (5), Ultimate £70 (10) | Standard £23, Premium £34 a month | Not included: "QuickBooks plans do not come with payroll" |
| Extra employees | £1.50 each (£1 on Ultimate) | From £2.40 a month each (Essentials) | Payroll Core: £5 a month + £1.50 per employee (QuickBooks help article) |
| Introductory offer shown | 90% off for the first 6 months | 90% off for 3 months | 90% off for 6 months (accounting plans) |
| How employees get payslips | Xero Me app | Self-service portal for payslips and P60s | Printed or emailed; portal on Advanced Payroll |
| Reports to HMRC (RTI) | Yes, after every pay run | Yes, each time you pay | Yes, FPS automatically or on your click |
| Workplace pensions | Auto-enrolment; connects to Nest and The People's Pension | Set up and manage from payroll | Advanced Payroll sends to NEST, The People's Pension, Smart, Aviva, NOW |
Checked 4 October 2026. From xero.com/uk (pricing plans, payroll), sage.com/en-gb (Sage Payroll pricing) and quickbooks.intuit.com/uk (pricing, payroll). Prices exclude VAT.
Monthly cost for one employee
| Route | Per month | Per year |
|---|---|---|
| Xero Ignite + payroll for 1 person | £19.50 | £234 |
| Xero Grow (payroll for 1 person included) | £39 | £468 |
| Sage Payroll Essentials (up to 5 employees) | £12 | £144 |
| QuickBooks Simple Start + Payroll Core | £16 + £6.50 | £270 |
Xero Ignite caps invoices and bills, so a business that outgrows it moves to Grow, where payroll for one person is included. Sage's payroll price is for payroll itself. QuickBooks' UK pricing page doesn't show the payroll add-on price as text; its help article on payroll billing lists Payroll Core at £5 a month plus £1.50 per employee, billed on employees marked active from 15 June 2026. Introductory discounts make the first months much cheaper on all three; the figures above are the full prices that follow.
If you already use one of them
- Xero: payroll is already in Grow and above for a set number of people. If you are on Grow with one employee, payslips cost you nothing extra.
- Sage: Sage says Sage Accounting includes Sage Payroll, so check your plan before buying payroll separately.
- QuickBooks: payroll is an add-on to Simple Start, Essentials, Plus or Advanced. QuickBooks says payslips can be created in both its payroll products and printed or emailed.
Using the same product for books and payroll saves typing: wages, tax and pension costs post to your accounts automatically. That is often worth more than the price difference.
What the payslip has to show, whichever tool you use
The law is the same however the payslip is made. GOV.UK says employees and workers must get a payslip on or before payday, printed or electronic as the employer chooses, showing:
- earnings before and after any deductions
- the amount of any deductions that may change each time they're paid, such as tax and National Insurance
- the number of hours worked, if pay varies with time worked
Fixed deductions, such as a season ticket loan repayment, can be listed on the payslip or in a separate written statement given at least once a year. A payslip from Xero, Sage, QuickBooks or a separate payslip tool meets the rule if it shows these items; an email with a net figure doesn't.
The no-subscription option
Employers with fewer than 10 employees can report to HMRC with HMRC's own Basic PAYE Tools, which is free. It works out tax and National Insurance and sends the Full Payment Submission, and its user guide (updated 21 July 2026) says you can create a payslip for each employee and save it as a PDF. GOV.UK's guidance on running payroll also says you can use different software for payslips if you'd rather.
So the cheapest legal set-up for one employee is often Basic PAYE Tools on its own, or Basic PAYE Tools plus a separate payslip tool if you want a different layout. You give up automatic posting to your accounts and an employee portal; you keep the monthly fee.
| Route | Yearly cost |
|---|---|
| Basic PAYE Tools + PayDocs, single payslips | 12 × £3.99 once checkout opens |
| Basic PAYE Tools + PayDocs, one 12-pack | £27.99 once checkout opens |
| Sage Payroll Essentials | £144 + VAT |
| Xero Ignite + payroll for 1 person | £234 + VAT |
Where PayDocs fits
PayDocs makes the payslip from your figures, in one of six layouts. PayDocs works out PAYE income tax, National Insurance and supported deductions for 2026/27 pay dates; check the lines against Basic PAYE Tools. You preview free and pay per payslip, with packs whose credits don't expire.
PayDocs doesn't send RTI submissions to HMRC, run auto-enrolment or post to your accounts. If you need those in one place, Xero, Sage and QuickBooks payroll do them.
Questions
Does Xero make payslips?
Yes, with Xero payroll. Employees see their payslips in the Xero Me app. Payroll is included for 1, 5 or 10 people on the Grow, Comprehensive and Ultimate plans, and costs £1.50 per person on Ignite (checked 4 October 2026).
How much is Sage Payroll in the UK?
From £12 a month plus VAT for Payroll Essentials, up to 5 employees, with extra employees from £2.40 a month each. Standard is £23 and Premium £34 a month.
Is there a free way to make payslips in the UK?
HMRC's free Basic PAYE Tools reports payroll and can save a payslip for each employee as a PDF. You can also make payslips with separate software; GOV.UK allows it.
Sources
- Xero UK: Pricing plans (checked 4 October 2026)
- Xero UK: Payroll (checked 4 October 2026)
- Sage UK: Sage Payroll pricing (checked 4 October 2026)
- QuickBooks UK: Pricing (checked 4 October 2026)
- QuickBooks UK: Payroll (checked 4 October 2026)
- QuickBooks UK, payroll billing change and fees (checked 4 October 2026)
- GOV.UK: Running payroll
- GOV.UK: How to use Basic PAYE Tools, Create payslips (updated 21 July 2026)
- GOV.UK: Payslips
Sources checked 8 October 2026. This article explains how pay documents work; it is not tax or legal advice.
