Payroll software · United Kingdom · Head-to-head
BrightPay vs Xero Payroll (UK)
Two United Kingdom payroll software options, compared side by side for United Kingdom trades.
Which should you choose?
Xero Payroll (UK) is Tier S: our check found its prices published on its own website. BrightPay is Tier A. Compare the typical pricing shown for each below. The tier is not a quality ranking: weigh the pros, cons, pricing and United Kingdom-specific notes below against your trade and region.
BrightPay
Tier A · ListedUK payroll software from Bright, on HMRC's recognised list; cloud-only from the 2026/27 tax year
BrightPay is payroll software from Bright Software Group (Thesaurus Software Ltd), with a UK office in Leamington Spa. Bright says BrightPay is used to pay 3.5 million employees every month. From the 2026/27 tax year only the cloud version is sold: BrightPay for Windows was discontinued after 5 April 2026.
Pros
- + On HMRC's recognised payroll software list
- + Auto enrolment alerts and links to NEST, The People's Pension and Smart Pension
- + Annual or monthly billing on the cloud version, with a free trial
- + Companion BrightCIS product for CIS returns
Cons
- − Desktop version discontinued after 5 April 2026; desktop users must move to the cloud version
- − No published price list: cloud prices come from Bright's online calculator
- − CIS needs a separate product (BrightCIS)
- − Payroll only: pair it with separate job-management and accounting tools
United Kingdom note
BrightPay is on HMRC's list of recognised payroll software and Bright describes it as RTI and HMRC recognised. It automates auto enrolment tasks and links to NEST, The People's Pension and Smart Pension for contribution submissions. CIS returns need BrightCIS, a separate Bright product.
Xero Payroll (UK)
Tier S · Published pricesPayroll built into Xero's UK accounting plans, with RTI, auto enrolment and a CIS add-on
Xero Payroll is part of Xero's UK accounting subscriptions, supplied by Xero (UK) Limited in Milton Keynes. It files RTI reports to HMRC after each pay run, handles auto enrolment, and sends payslips through the Xero Me app or by email, and tracks leave balances. Payroll is included for 1, 5 or 10 people on the Grow, Comprehensive and Ultimate plans, and charged per person on Ignite.
Pros
- + Payroll, accounting and invoicing in one Xero subscription
- + On HMRC's recognised payroll software list, with RTI filing after each pay run
- + Auto enrolment and employee payslips through the Xero Me app
- + Optional CIS add-on files monthly returns to HMRC
Cons
- − Only sold inside a Xero accounting plan, not as standalone payroll
- − Payroll cost rises per person above the plan's included headcount
- − CIS returns cost an extra £5 per month
United Kingdom note
Xero Payroll is on HMRC's list of recognised payroll software. Xero says it files RTI with HMRC after every pay run and automates auto enrolment. For construction, an optional £5 per month add-on calculates CIS on invoices and files monthly CIS returns to HMRC.
More United Kingdom options
See all United Kingdom payroll software vendors and the rest of the United Kingdom directory.