What payroll software is approved by HMRC in the UK?

Using HMRC-recognized payroll software is useful for reporting PAYE information online accurately and on time. These tools are tested for compliance and can handle key requirements like tax submissions, National Insurance (NI) calculations, and Real Time Information (RTI) reporting. HMRC-recognized payroll platforms from our list include: HiBob, BrightPay, Deel, Employment Hero, IRIS, QuickBooks, Rippling, Sage, Xero.

Can I run my own payroll in the UK?

Yes, but it’s a lot to manage manually. Running your own payroll in the UK requires you to: Register as an employer with HMRC; Choose payroll software (or handle calculations manually); Record team member details and track pay/deductions; Report to HMRC on or before each payday; Keep detailed records; Pay the correct tax and NI to HMRC. It’s possible, but far easier to use a platform like Bob, which automates this entire process so you stay legally compliant, keep everything in one place, and use your valuable time to get in front of your people.

Can a non-UK resident be on a UK payroll?

Yes, under specific conditions. If a team member lives outside the UK and performs none of their work in the UK, they typically don’t fall under UK tax laws, and no PAYE income tax needs to be deducted. In these cases, it’s possible to pay someone on a gross basis through a UK payroll, but if any part of their work is performed in the UK, PAYE obligations may apply.

What is considered among the best payroll software in the UK?

The most effective payroll software handles all pay calculations and necessary tax filings without creating more work for your team. Look for a platform that offers automatic HMRC submissions, self-service, accurate payslip generation, built-in compliance updates, and seamless integrations with HR and finance systems. Bob offers all of this in one user-friendly platform. HR leaders use Bob every day to automatically calculate accurate pay, support complex scenarios like parental leave or irregular hours, and adjust to different pay schedules like weekly, bi-weekly, or monthly.

How to do payroll for a small business in the UK?

The easiest way to run payroll as a small business is to choose software that helps you stay compliant, automate repetitive tasks, and ensure everyone gets paid accurately and on time. A step-by-step plan might look like this: Register with HMRC as an employer and get a PAYE Online login; Choose payroll software that calculates pay, deductions, and generates payslips; Add your people into the software and input their pay details, contracts, and tax codes; Run your payroll each pay period—review, approve, and submit to HMRC; Pay people via direct deposit and send payslips; Pay HMRC the tax and National Insurance owed; Keep records of pay, taxes, and submissions for compliance. You can automate most of these steps with a platform like Bob. This empowers you to spend less time on admin and more time growing your team.