Payroll software · United Kingdom
Xero Payroll (UK)
Payroll built into Xero's UK accounting plans, with RTI, auto enrolment and a CIS add-on
Market position
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.
United Kingdom-specific 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.
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
Typical United Kingdom pricing
Inside Xero UK plans, excl. VAT: Ignite £18 per month plus payroll at £1.50 per person; Grow £39 (payroll for 1 person); Comprehensive £55 (5 people); Ultimate £70 (10 people); extra people £1.50 each (£1 on Ultimate); CIS add-on £5 per month
Why this matters for United Kingdom trades
Gas Safe Register is the register approved by HSE: a business must be on it to legally do gas work within the scope of the Gas Safety (Installation and Use) Regulations 1998, and HSE prosecutes unregistered gas fitters. For electrical work in dwellings, NICEIC (Certsure) is one of several authorised competent person schemes, alongside BESCA, Blue Flame Certification, NAPIT and OFTEC, that let installers self-certify instead of getting building regulations approval, and OFTEC is one of six schemes authorised for oil appliances. The payroll tools listed here are on HMRC’s list of recognised payroll software, while CIS returns may need an add-on or a separate product; insurers such as Hiscox and AXA note that employers’ liability insurance is a legal requirement once you employ staff.
UK trades vendor selection is shaped by the Gas Safe Register for gas work, competent person schemes such as NICEIC and OFTEC that let installers self-certify building work, payroll duties (HMRC RTI reporting, workplace pension auto enrolment and, in construction, CIS returns), VAT, and lead services such as Checkatrade, MyBuilder and TrustATrader.
Frequently asked
Is Xero Payroll (UK) a good fit for United Kingdom trades?
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. 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.
What does Xero Payroll (UK) cost in United Kingdom?
Inside Xero UK plans, excl. VAT: Ignite £18 per month plus payroll at £1.50 per person; Grow £39 (payroll for 1 person); Comprehensive £55 (5 people); Ultimate £70 (10 people); extra people £1.50 each (£1 on Ultimate); CIS add-on £5 per month. Pricing and availability can change by region; confirm current United Kingdom pricing on the vendor's site before committing.
Does Xero Payroll (UK) publish its prices?
Yes. Xero Payroll (UK) is Tier S in our United Kingdom directory, which means our check found its prices published on its own website (see the typical pricing above). The tier is not a quality ranking, so compare it against the alternatives for your trade and region.