Managing HR in the UK means a lot of paperwork. Using the right HR software automates everyday tasks, saving you time on manual work and allowing you to focus on your people. 

We evaluated the leading platforms to understand which ones truly deliver for British businesses. For example, HiBob has native payroll built directly into its HR software for small UK businesses, with a user-friendly interface that your team can start using right from the start. We’ll look at how each platform handles HMRC requirements, what size companies they’re best for, and which trade-offs you’ll face with each option.

Disclaimer: The opinions expressed here are solely those of the author and do not necessarily reflect the views of the company. Prospective users are encouraged to conduct their own research to make the best decision for their organization.

Quick guide: 10 best HR software options for UK companies

  1. HiBob: The best overall HR platform for UK companies
  2. Personio: Works for UK SMEs expanding into European markets
  3. UKG: Built for larger companies managing hourly workers across multiple sites
  4. BambooHR: Works for smaller teams looking for straightforward HR basics
  5. CharlieHR: Fits UK startups that need affordable HR essentials
  6. Workday: Option for FTSE 100 companies with dedicated HR teams
  7. Breathe: Designed for very small UK teams on tight budgets
  8. ADP: Works if you want fully managed payroll services
  9. SAP SuccessFactors: Option for global enterprises with UK offices
  10. Rippling: Works for teams wanting HR, IT, and finance in one place

How we chose the best HR software for small businesses UK

The best HR platform for your UK business can help you solve real problems. It should make it easy to get your HMRC submissions right and meet pension enrollment deadlines, freeing up your time for other work. We evaluated each platform based on the challenges UK HR teams face every day:

  • UK payroll capabilities: Does it offer native UK payroll, or allow for simple third-party integrations?
  • HMRC compliance: Can it handle RTI submissions, tax codes, and National Insurance automatically?
  • Pension auto-enrollment: How well does it manage eligibility assessments and contribution calculations?
  • Data safety requirements: Does it meet UK GDPR standards? Will your people’s information be stored in compliant data centers?
  • Local support: Is there UK-based support that understands local employment law and HR practices?
  • Implementation speed: How quickly can UK businesses get set up and running?
  • Scalability: Can it grow with you from a small team to a larger operation?

The 10 best HR software for UK companies

1. HiBob: Best overall HR platform for UK companies

HiBob has everything your UK business needs built right into the platform. You won’t have to worry about HMRC compliance, RTI/FPS submissions, or setting up pay run frequencies—its native UK Payroll handles them automatically. Tax codes and student loan thresholds update automatically when HMRC changes them, and you’ll get alerts before anyone’s pay drops below National Minimum Wage.

Once you’ve set up pension enrollment, it will run itself. It checks eligibility, calculates contributions, and enrolls workers automatically. It also connects directly with major UK pension providers like Aviva, so information moves from assessment to submission without manual intervention. P11Ds and P60s generate automatically at year-end and go straight to your team.

UK policies are ready for you to use from day one, and employment templates, statutory leave calculations, and bank holiday schedules for all UK regions are pre-configured into the system. HiBob’s Time Off module automatically calculates statutory sick pay, maternity leave, and holiday accrual for you.

Trying to avoid IT backlogs? Payroll Hub connects directly with your existing payroll provider through a simple, no-code wizard that anyone on your team can manage. Its visual dashboard helps you catch issues before they become problems. And unlike traditional HR systems that take months to implement and longer to master, with HiBob you’ll be up and running in weeks.

HiBob key features

  • Native UK Payroll that handles HMRC compliance, RTI submissions, and tax updates without manual intervention
  • Pension auto-enrolment that runs eligibility checks and connects directly with your providers
  • Benefits administration in the same place as payroll—no duplicate data entry
  • P11Ds that generate automatically and reach your team without manual distribution
  • Ready-to-use UK leave policies, with regional variations already built in
  • London-based support teams who know UK employment law inside out
  • Compliance workflows that follow UK requirements for right-to-work checks and disciplinary procedures

HiBob pros and cons

Pros:

  • “I love that HiBob is customisable to our business needs and integrates with many different systems” – verified review
  • “The high degree of customisation in HiBob is very impressive” – verified review
  • “Customer support has been fantastic and quick” – verified review
  • “The time off is so good: create your policies, apply them to each employee” – verified review
  • “HiBob is also cost-effective, which makes it a great choice for SMEs” – verified review
  • “Helped us to streamline our performance review cycle” – verified review

Cons:

  • “I don’t like that I can’t speak to someone easily at HiBob” – verified review
  • “The engagement surveys are a little bit clunky” – verified review

2. Personio: Works for UK SMEs expanding into European markets

Personio can handle your UK essentials—P45s, P60s, and PAYE calculations, National Insurance, and pension auto-enrollment—all generated automatically. It also includes pre-built workflows for UK employment contracts and standard leave policies.With an implementation time of just four to five weeks, you can have your HR processes up and running in no time.

One-click data transfer between Personio and payroll providers means you’ll spend less time fixing mistakes, but you’ll need to manage two separate systems with two different support teams. The built-in GDPR compliance and EU-specific features add value if you’re setting up in Europe—but keep in mind that pricing often jumps at renewal time, so you may end up going over your budget.

Personio key features

  • Integration with HMRC-recognised providers like Xero and Sage 50
  • Built-in UK compliance support including PAYE and auto-enrollment
  • One-click data transfer between HR and payroll systems

(This article includes platform features that reflect the information available on the Personio website as of the publication date.)

Personio pros and cons

Pros:

  • “The best aspect of Personio is its ease of use and implementation” – verified review
  • “Worked well for us as a company of around 45-50 employees” – verified review
  • “It is simple to use. Very good interface” – verified review

Cons:

  • “Its pricing can be a bit steep for smaller businesses or startups” – verified review
  • “At renewal they decided to sneak in a new model where they changed the contract to commit us to many more seats than we ever needed” – verified review
  • “The mobile app could benefit from additional functionality to match the desktop version” – verified review

(Pros and cons are compiled from reviews found on G2.)

<<Compare HiBob vs. Personio – See which fits your business best>>

3. UKG: Suits larger companies managing hourly workers across multiple sites

UKG offers two platforms, UKG Ready and UKG Pro, that connect with your existing payroll provider. Both options stay up to date with HMRC changes automatically, helping you stay compliant with changing regulations. That said, if you run into any issues, you may end up waiting a few days for help from the support team.

UKG might work for you if you’re managing 350+ people across multiple sites, especially with hourly workers or shift patterns. The learning and training features take time to master, so if developing your team is high on your list, you’ll probably want to supplement it with another tool.

UKG key features

  • Global payroll platform with UK capabilities
  • Automated regulatory updates for compliance
  • Integration with UK payroll service providers

(This article includes platform features that reflect the information available on the UKG website as of the publication date.)

UKG pros and cons

Pros:

Cons:

  • “The implementation team was more worried about “checking boxes” than actually completing the tasks” – verified review
  • “Their customer service is very slow and it takes days to get issues resolved” – verified review
  • “Learning and training are a bit more difficult to navigate” – verified review

(Pros and cons are compiled from reviews found on G2.)

<<Compare HiBob vs. UKG – See which fits your business best>>

4. BambooHR: Works for smaller teams that want straightforward HR basics

BambooHR keeps things simple for smaller UK teams. The interface makes everyday HR tasks straightforward—people can manage time off requests, update their details, and access documents through self-service. If you have fewer than 350 people and only need standard HR processes, you’ll find the essentials covered: people records, holiday tracking, and basic reporting that gets the job done.

BambooHR connects with UK payroll providers through integrations, so you can keep your current payroll setup and use BambooHR to manage the HR side. This reduces manual data entry between systems. If your team grows and you need more than just basics, you may end up adding specialized tools for advanced analytics or custom workflows.

BambooHR key features

  • Integration partnerships with UK payroll providers
  • Employee self-service portal for time off and personal information
  • Basic HR functionality with simple reporting tools

(This article includes platform features that reflect the information available on the BambooHR website as of the publication date.)

BambooHR pros and cons

Pros:

  • “The platform is user-friendly, straightforward” – verified review
  • “BambooHR is intuitive from set up to implementation” – verified review
  • “It allows our employee information to stay current and up to date” – verified review

Cons:

  • “While the simplicity of Bamboo is beneficial for navigation, it’s also a negative because it limits the ability to handle complex HR situations” – verified review
  • “It doesn’t integrate with many of our other systems which makes reporting, tracking, and other HR components difficult.” – verified review
  • “Your company set up needs to be fairly cookie cutter to get the most efficiencies out of BambooHR” – verified review

(Pros and cons are compiled from reviews found on G2.)

<<Compare HiBob vs. BambooHR – See which fits your business best>>

5. CharlieHR: Fits UK startups needing affordable HR essentials

CharlieHR is a London-based platform built for small UK startups and businesses with up to 50 people. It integrates with HMRC-recognised payroll providers like Xero to manage your UK tax codes, and comes with built-in features for UK companies like right-to-work checks. Your data stays on UK-based servers, so you won’t need to worry about data protection compliance.

The flat-fee pricing can be a good fit for startup budgets, and you’ll typically be up and running in an afternoon. If you need advanced configurations or custom workflows, you’ll want to look at platforms with more extensive features, especially if you plan on growing beyond 50 or so people.

CharlieHR key features

  • Integration with UK payroll providers like Xero
  • Built-in right-to-work checks for UK compliance
  • Data stored on UK servers with UK data protection compliance

(This article includes platform features that reflect the information available on the CharlieHR website as of the publication date.)

CharlieHR pros and cons

Pros:

  • “We still get the support benefits but at a cost that suits the business” – verified review
  • “I found it pretty simple to get everybody set up initially” – verified review
  • “It does what it says on the tin!” – verified review

Cons:

  • “Was not useful nor helpful when extracting the data. The customer service did not help.” – verified review
  • “Somewhat unstable, it crashed a few times and was out of service for a few days” – verified review
  • “Some elements on the platform can be a bit clunky” – verified review

(Pros and cons are compiled from reviews found on G2.)

6. Workday: Option for FTSE 100 companies with dedicated HR teams

Workday offers native UK payroll with everything built into one system—things like automatic tax updates, statutory payments, student loan repayments, and court-ordered deductions are all taken care of automatically. You won’t need to move data between different platforms because payroll and HR live in the same place.

Workday may work for you if you’re managing HR for a large corporation. This is reflected in the implementation process—you’ll need three to four months and significant resources to get everything running. If you’re a smaller business or want something simpler, you might find Workday’s enterprise-scale features and pricing more than you need.

Workday key features

  • Native UK payroll with HMRC integration and automatic updates
  • UK data compliance with London-based hosting
  • Extensive UK partnerships, including Big Four consultants

(This article includes platform features that reflect the information available on the Workday website as of the publication date.)

Workday pros and cons

Pros:

  • “It keeps track of everything all in one program” – verified review
  • “Once you get the hang of it, it is pretty easy to use” – verified review
  • “What I like best about Workday is how easy and reliable the platform is” – verified review

Cons:

  • “One potential drawback of Workday HCM can be the complexity of implementation and configuration, which may require significant time and resources” – verified review
  • “Not the fastest or nicest looking platform.” – verified review
  • “Workday is a complex tool, and I went through a steep learning curve to navigate the platform.” – verified review

(Pros and cons are compiled from reviews found on G2.)

<<Compare HiBob vs. Workday – See which fits your business best>>

7. Breathe: Suits very small UK teams on tight budgets

Breathe keeps things simple for very small UK businesses. It covers the basics if you have fewer than 250 people and are moving beyond spreadsheets for the first time. The budget-friendly pricing makes it accessible when you’re just getting started, and you can try everything free for 14 days. 

As you grow, you might outgrow what Breathe offers. You may find yourself working around limited customization options, especially when you need specific reports or want to connect other tools. Onboarding and recruitment tell the same story—they’re pretty basic, so you might want more sophisticated features later. If you’re planning to scale quickly, think about whether you’ll need to switch platforms in a year or two.

Breathe key features

  • Basic HR management with UK-based data storage
  • UK data protection-compliant platform for small teams
  • Simple pricing structure with a free trial

(This article includes platform features that reflect the information available on the Breathe website as of the publication date.)

Breathe pros and cons

Pros:

Cons:

  • “There are occasional limitations with customisation, especially around reporting and integrating with other systems.” – verified review
  • “I do find the layout a little tricky to navigate sometimes” – verified review
  • “The onboarding and recruitment process for new staff could be better. Although the system does provide this, it is very limited in its capabilities.” – verified review

(Pros and cons are compiled from reviews found on G2.)

8. ADP: Works if you want fully managed payroll services

ADP comes with HMRC recognition and Bacs approval already sorted. You can choose how you want to work—run payroll yourself using its cloud software, or hand it all over to ADP’s managed services team. Whichever you choose, RTI submissions, National Insurance calculations, and pension auto-enrollment will happen automatically.

You’ll need at least three months to get set up as ADP uses its enterprise-focused approach for all companies. The interface may feel a little old fashioned and you’ll need to log into different modules separately, which can slow you down. Once you’re in, you might find yourself creating manual workarounds when you need advanced features like custom reports.

ADP key features

  • HMRC-recognised payroll with Bacs approval
  • UK compliance includes automated RTI and year-end reporting
  • Choice between software and fully managed payroll services

(This article includes platform features that reflect the information available on the ADP website as of the publication date.)

ADP pros and cons

Pros:

  • “I like how easy it is to use ADP” – verified review
  • “All info is easily accessible, user friendly and straightforward” – verified review
  • “Very user friendly and even a basic user can navigate it really quick” – verified review

Cons:

  • “The system is not intuitive and requires navigating multiple disconnected areas to complete even basic tasks.” – verified review
  • “It’s difficult to create customized reports, and it’s easy to make manual errors that the system won’t catch.” – verified review
  • “There are too many customer service reps who are unqualified and not knowledgeable about the service we need help with” – verified review

(Pros and cons are compiled from reviews found on G2.)

9. SAP SuccessFactors: Option for global enterprises with UK offices

SAP SuccessFactors comes with Employee Central Payroll. It’s configured for UK tax and payroll requirements, so you’ll get automatic minimum wage checks and statutory payment calculations that update when UK laws change. Getting everything set up your way takes time and training—if you need something quick, SAP probably isn’t for you.

If you’re a global enterprise with UK operations, SAP SuccessFactors may work for you. However, the standard reporting tools might not give you all the UK-specific reports you need, so plan on having IT support available for custom report creation and to help manage integrations. You’ll also need budget for ongoing maintenance costs. 

SAP SuccessFactors key features

  • Employee Central Payroll with UK-specific configuration
  • Automated UK compliance including pension and P45/P60 generation
  • UK partnerships with local implementation support

(This article includes platform features that reflect the information available on the SAP SuccessFactors website as of the publication date.)

SAP SuccessFactors pros and cons

Pros:

  • “Easy to use for both administrators and end users, with a responsive UI” – verified review
  • “Very well suited for employee performance evaluation platform and recruiting process” – verified review
  • “We can easily create reports in core HR and issue resolving time is less” – verified review

Cons:

  • “Maintenance cost is high and integration is complex.” – verified review
  • “Some parts of the interface feel a bit outdated and not very intuitive.” – verified review
  • “Standard reporting tools can be less flexible than other HCM systems, often requiring IT support for custom reports.” – verified review

(Pros and cons are compiled from reviews found on G2.)

<<Compare HiBob vs. SAP SuccessFactors – See which fits your business best>>

10. Rippling: Works for teams wanting HR, IT, and finance in one place

Rippling offers HMRC-recognized payroll software with native UK processing built in. You’ll get automated tax calculations and RTI submissions, plus built-in safeguards—for example, you won’t be able to accidentally onboard someone below the minimum wage for their age bracket. Pension auto-enrollment, minimum wage alerts, and P45/P60 generation all happen automatically.

Rippling brings HR, IT, and Finance together in one platform, so all your data lives in one place. Some capabilities shown in demos are only available on more expensive plans, so you should check what’s included in your quote carefully.

Rippling key features

  • HMRC-recognised payroll with native UK processing
  • Automated compliance rules for UK minimum wage and leave policies
  • Unified platform connecting HR, IT, and Finance data

(This article includes platform features that reflect the information available on the Rippling website as of the publication date.)

Rippling pros and cons

Pros:

  • “I love how easy it is to complete workflows like payroll and employee onboarding” – verified review
  • “The software is intuitive to use and employees and administrators alike are able to use it with ease” – verified review
  • “The interface is very clean and intuitive to find exactly what you are looking for” – verified review

Cons:

  • “The platform is cluttered and disjointed. I either experience multiple notification about features and issues irrelevant to my organization or having to dig through confusing sub menus and help articles to find a clear answer to a question” – verified review
  • “Many of the issues we’ve experienced have been caused by a poor sales experience that promised functionality that either doesn’t exactly exist as presented, or only exists in higher tiers” – verified review
  • “While support has improved, there’s still room for better follow-through on commitments.” – verified review

(Pros and cons are compiled from reviews found on G2.)

<<Compare HiBob vs. Rippling – See which fits your business best>>

Comparison summary: The best UK HR and payroll software

1. HiBob

  • Suitable for: Growing UK companies
  • UK payroll: ✓ Native
  • Ideal company size: 50-500

2. Personio

  • Suitable for: UK SMEs expanding into European markets
  • UK payroll: Via integration
  • Ideal company size: 10-2,000

3. UKG

  • Suitable for: Larger companies managing hourly workers
  • UK payroll: Via integration
  • Ideal company size: 350-10,000

4. BambooHR

  • Suitable for: Smaller teams wanting straightforward HR
  • UK payroll: Via integration
  • Ideal company size: Under 350

5. CharlieHR

  • Suitable for: UK startups needing affordable HR
  • UK payroll: Via integration
  • Ideal company size: 7-50

6. Workday

  • Suitable for: FTSE 100 companies
  • UK payroll: ✓ Native
  • Ideal company size: 500+

7. Breathe

  • Suitable for: Very small teams on tight budgets
  • UK payroll: ✗
  • Ideal company size: Up to 250

8. ADP

  • Suitable for: Fully managed payroll services
  • UK payroll: ✓ Native
  • Ideal company size: 50-500

9. SAP SuccessFactors

  • Suitable for: Global enterprises with complicated structures
  • UK payroll: ✓ Configured
  • Ideal company size: 1,000+

10. Rippling

  • Suitable for: Teams wanting HR/IT/finance unified
  • UK payroll: ✓ Native
  • Ideal company size: Small-medium

What features should you look for in HR software for a UK company?

You’ll want UK compliance features sorted first—things like automated RTI submissions, pension auto-enrollment calculations, and P60 generation save you hours each month. Platforms that update tax codes when HMRC changes them and flag minimum wage issues before they become problems mean you don’t have to worry about compliance. When your HR software handles these tasks reliably, you get time back for strategic work like workforce planning and people development.

Self-service options make everyone’s life easier. Your team can handle their own updates and time-off requests instead of emailing HR or opening tickets. Mobile access is a must, especially for remote or field workers who need to track their work time and check payslips whether they’re on the move. 

What is the average cost of an HR system in the UK?

HR software pricing in the UK depends on your company size and what features you need:

  • Budget platforms handle the basics—people records, time off, simple reporting—and work well if you only need something straightforward. 
  • Mid-market solutions give you more flexibility with better analytics, customization options, and support teams who get to know your business. 
  • Enterprise platforms are built for scale. They’re expensive because they take care of complicated and non-traditional org structures and global operations.

Premium platforms cost more because they come with advanced features and dedicated support teams who know your setup inside out. The monthly per-seat price is just the start—you’ll also pay for implementation, training, and integrations. Some platforms hit you with setup fees that are a percentage of your annual contract, so always read the small print.

Don’t forget about the hidden costs of juggling multiple systems. That affordable HR platform suddenly gets expensive when you need to add separate payroll, benefits, and performance tools. HiBob offers native tools and plenty of integration options that keep everything in one place—giving you better data, fewer headaches, and plenty of customization options.

Why HiBob is the best HR software for small businesses in the UK

HiBob works particularly well for UK businesses because everything you need for UK compliance is built in. Its UK Payroll manages RTI submissions, pension calculations, and compliance updates all in one place. You’ll save hours each week on admin tasks, and when regulations change, your system will stay current.

Bank holidays for all UK regions, statutory leave calculations, and employment templates come pre-configured, so your UK setup is ready from day one. When minimum wage goes up or tax bands change, HiBob updates automatically—you don’t need to track every HMRC announcement.

You can start with what you need now and add features as you grow—begin with core HR, then add performance management or multinational capabilities when you’re ready. Whether you’re at 50 people or scaling to hundreds across multiple locations, the platform grows with you. You’ll be up and running in six to eight weeks, with immediate time savings from day one.

Get started with HiBob’s UK HR platform →

FAQs about best HR software UK

What is the most used HR software in the UK?

The most used HR software depends on what size company you’re talking about—smaller UK businesses often use BambooHR, CharlieHR, or Breathe for basic HR needs, while larger companies usually choose enterprise platforms. HiBob works particularly well for growing UK businesses because it offers both native UK payroll and other features that scale with you.

Unlike basic platforms that you’ll outgrow or enterprise systems that take months to implement, HiBob gives you UK compliance, culture tools, skill development, and everything else you might need in a user-friendly platform—all ready in six to eight weeks.

Which payroll software is best in the UK?

The best UK payroll software depends on your specific needs, but HiBob’s native UK Payroll works well because it brings Core HR and payroll data together in one system. Instead of relying on third-party integrations, HiBob handles RTI submissions, tax code updates, and National Insurance calculations where you manage your people’s data. You get rid of duplicate entry and reduce errors while saving hours every pay cycle via automated workflows.

What features should you look for in HR software?

For UK businesses, you should look for HR software with automated HMRC compliance, pension auto-enrollment management, and UK GDPR-compliant storage. You’ll want self-service options, mobile access to make your people’s lives easier, and integrated payroll to reduce your administrative workload.

The best solutions also give you performance management, leave tracking, and analytics all in one platform, so you won’t need multiple disconnected tools. Everything should work together naturally.

Recommended For Further Reading

What is the best HR software for a small business?

HiBob offers the right balance of sophisticated features and user-friendly design that small UK businesses need. It handles compliance requirements while staying simple enough for small teams to manage without dedicated HR staff.

With transparent mid-market pricing, native UK payroll, and implementation in just six to eight weeks, HiBob gives you enterprise-level capabilities that make sense for smaller businesses.

What is the average cost of an HR system in the UK?

UK HR system costs depend on what features you need and how many people you’re supporting. The most affordable options cover just the basics—personnel records and holiday tracking—so you’ll need separate payroll software.

Mid-market solutions bring HR and payroll together in one system, which typically gives you better value as you grow. Enterprise platforms cost a lot more but come with more features and dedicated support teams. Remember to budget for setup costs and training, as these can add up quickly with more advanced systems.

Oz Tollman

From Oz Tollman

Oz Tollman is an experienced marketing strategist specializing in SaaS and HR technology. With over eight years in the field, he helps companies grow their online presence through data-driven SEO, content strategies, and digital innovation.