Xero Payroll
Xero Payroll: A UK-focused payroll option with pension reporting, multiple pay schedules and Xero accounting plans. Ranked #3 of 48 in Small Business Payroll Software by our editors (9.0/10); pricing: 30-day trial; best for UK businesses needing detailed HMRC payroll support.
At a glance
- Editor score9.0 / 10
- Pricing30-day trial
- Best forUK businesses needing detailed HMRC payroll support
- Free planNo
- Paid from£39/mo
- Direct depositYes
- Facts checked13 Oct 2026
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
Our verdict on Xero Payroll
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 payroll included in a Xero accounting plan. Employees can use Xero Me to view payslips and P60s, check leave balances, and submit leave requests and timesheets. Access is available on web, iOS and Android.
HMRC and pension administration are central to the product. Xero Payroll submits Full Payment Submissions and Employer Payment Summaries, and calculates PAYE, NIC, pension contributions and leave. It supports weekly, fortnightly, four-weekly, monthly, quarterly and annual pay schedules, plus multiple pay calendars. Workplace pension assessment and provider reporting are included, as are payroll reports such as P32, P11 and pension reports. BACS/Faster Payments payment files, director NIC calculations and IR35 payroll support extend its coverage beyond standard employee pay. NEST and The People's Pension are named integrations.
Pricing depends on how payroll is purchased. Ignite payroll is £1.50 per person per month, charged separately from the Ignite accounting plan. Grow is £39 monthly with payroll for one person included; Comprehensive is £55 monthly for five people; Ultimate is £70 monthly for ten. Prices are in GBP and exclude VAT, and a 30-day trial is available. The higher accounting-plan prices make the per-person add-on more relevant for a small payroll, while businesses needing a broader accounting plan may prefer the included payroll allowance. Choose it for UK-specific HMRC and pension workflows within Xero; businesses seeking payroll without Xero accounting plans may want to compare alternatives.
Your product? Our editors can test Xero Payroll in depth and publish a review, labelled as paid · from $99/mo →
Xero Payroll pricing
All 4 Xero Payroll plans and prices →
Xero Payroll fact sheet
| Free plan | No |
|---|---|
| Paid from | £39/mo |
| Tax filing included | Yes |
| Direct deposit | Yes |
| Pay frequencies | weekly, fortnightly, four-weekly, monthly, quarterly, annually |
| Employee self-service | Yes |
| Worker pay types | employees, directors, off-payroll workers (IR35) |
| Payroll runs | Unclear |
| Free trial | 30 days |
| Deployment | Cloud, Mobile |
| Platforms | Web, iOS, Android |
| Compliance & security | GDPR |
| Support | Docs, Community · 24/7 |
| Built for | Small business, Mid-market (editorial estimate) |
| Integrations | 1,000+ integrations: NEST, The People's Pension (TPP), Xero Projects See all → |
| Pricing | 30-day trial (source) |
| Website | xero.com |
| Facts checked | 13 Oct 2026 |
Xero Payroll integrations
Xero Payroll lists 1,000+ integrations on its own site — the 3 named here are the ones its pages call out.
- NEST
- The People's Pension (TPP)
- Xero Projects
See all Xero Payroll integrations →
Alternatives to Xero Payroll
- RUN Powered by ADPFull-service payroll with tax filing, direct deposit and optional HR support.9.2
- QuickBooks PayrollAutomates payroll taxes and direct deposit for small businesses in the QuickBooks ecosystem.9.1
- Sage PayrollUK payroll with HMRC submissions, employee self-service and workforce tools.8.9
See all Xero Payroll alternatives →
Xero Payroll vs the competition
- Xero Payroll vs RUN Powered by ADP
- Xero Payroll vs QuickBooks Payroll
- Xero Payroll vs Sage Payroll
- Xero Payroll vs Gusto
- Xero Payroll vs ADP Workforce Now
- Xero Payroll vs Paylocity
Compare Xero Payroll with any tool side by side →
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Reviewed by iTechGuides Editors · Editorial team · Updated Oct 2026
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