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Head-to-head · Small Business Payroll Software

Xero Payroll vs Sage Payroll

  • Updated Oct 2026
  • Both researched from official sources
  • 4 checks side by side
Higher score Xero Payroll #3 in Small Business Payroll Software 9.0/10 30-day trial Free trial✓ 3 of 3 features Visit Xero
Sage Payroll #4 in Small Business Payroll Software 8.9/10 Paid ✓ 0 of 3 features Visit Sage

Xero Payroll leads on 0 checks, Sage Payroll on 0, and 4 are even. Who comes out ahead on the 4 yes/no, price and count checks where we have data for both products. The editor score weighs everything else too.

Our verdict

  • Highest scoreXero Payroll · 9.0/10
  • Free trialonly Xero Payroll
  • Most featuresXero Payroll · 3 of 3

Xero Payroll scores higher on our rubric for small business payroll software: 9.0 against 8.9 out of 10; our editors rank them #3 and #4.

Xero Payroll is the better fit for UK businesses needing detailed HMRC payroll support. Sage Payroll is the better fit for UK small businesses needing payroll and workforce tools.

  • Xero Payroll fits best

    UK businesses needing detailed HMRC payroll support

  • Sage Payroll fits best

    UK small businesses needing payroll and workforce tools

Advertiser disclosure: iTechGuides is reader-supported. Vendors can pay for top positions in our rankings and for a place on other products' pages, and we may earn a commission when you click some links. How we rank.

Side by side

Feature Xero Payroll 9.0/10 Visit ↗ Sage Payroll 8.9/10 Visit ↗
At a glance
Editor score 9.0 8.9
Ranking #3 in Small Business Payroll Software #4 in Small Business Payroll Software
Best for UK businesses needing detailed HMRC payroll support UK small businesses needing payroll and workforce tools
Pricing model Paid Paid
Starting price £39/mo —
Free plan — —
Free trial 30 days —
Deployment Cloud, Mobile Cloud
Platforms Web, iOS, Android Web, Windows, macOS, iOS, Android
Support Docs, Community · 24/7 Live chat, Phone, Community, Docs · 24/7
Integrations 1,000+ integrations 3 integrations
Built for Small business, Mid-market Small business, Mid-market
Features Xero Payroll 3/3 · Sage Payroll 0/3
Tax filing included ✓ (best) Not checked yet
Direct deposit ✓ (best) Not checked yet
Employee self-service ✓ (best) Not checked yet
Specs
Pay frequencies weekly, fortnightly, four-weekly, monthly, quarterly, annually Not checked yet
Worker pay types employees, directors, off-payroll workers (IR35) Not checked yet
Payroll runs Unclear Not checked yet
Our review
Pros
  • Files Full Payment Submissions and Employer Payment Summaries to HMRC
  • Calculates PAYE, NIC, pensions and leave automatically
  • Supports employees, directors and off-payroll workers
  • Calculates PAYE, National Insurance and pensions, and submits RTI to HMRC
  • Employee self-service provides payslips and P60s
  • Higher plans add timesheets, clocking and shift scheduling
Cons
  • Ignite payroll costs £1.50 per person per month on top of accounting
  • Grow, Comprehensive and Ultimate plans cost £39, £55 and £70 monthly
  • Support channels listed are documentation and community
  • There is no free plan
  • Shift scheduling is included only with Payroll Premium
  • Supports up to 150 employees
Our verdict

Xero Payroll is cloud payroll software for UK small businesses that need to calculate pay and meet payroll reporting requirements. It suits businesses with employee, director or off-payroll worker payroll, particularly those that also want…

Read the review →

Sage Payroll is cloud-based payroll software for UK start-ups and growing businesses that need to manage pay, statutory deductions and HMRC submissions. It calculates wages, PAYE, National Insurance and pension contributions, then supports…

Read the review →
  1. Xero PayrollSmall Business Payroll Software 9.030-day trial
  2. Sage PayrollSmall Business Payroll Software 8.9Paid

Strengths and trade-offs

  • Xero Payroll — where it wins

    • Files Full Payment Submissions and Employer Payment Summaries to HMRC
    • Calculates PAYE, NIC, pensions and leave automatically
    • Supports employees, directors and off-payroll workers

    Where it doesn't

    • Ignite payroll costs £1.50 per person per month on top of accounting
    • Grow, Comprehensive and Ultimate plans cost £39, £55 and £70 monthly
    • Support channels listed are documentation and community

  • Sage Payroll — where it wins

    • Calculates PAYE, National Insurance and pensions, and submits RTI to HMRC
    • Employee self-service provides payslips and P60s
    • Higher plans add timesheets, clocking and shift scheduling

    Where it doesn't

    • There is no free plan
    • Shift scheduling is included only with Payroll Premium
    • Supports up to 150 employees
  • Xero Payroll9.0/10 · 30-day trial

    A UK-focused payroll option with pension reporting, multiple pay schedules and Xero accounting plans.

    Visit XeroFull verdict →
  • Sage Payroll8.9/10 · Paid

    UK payroll with HMRC submissions, employee self-service and workforce tools.

    Visit SageFull verdict →

More comparisons

All small business payroll software comparisons → · Full ranking →

Reviewed by iTechGuides Editors · Editorial team · Updated Oct 2026

Last updated · How we research and update