Managed Payroll Services UK 2026: Costs, Providers & What’s Included Quick answer
Managed payroll is a service where a specialist provider helps run your payroll while your business keeps visibility and usually retains approval over the final pay run.
Depending on the provider, managed payroll can include:
gross-to-net payroll calculations
PAYE and National Insurance
HMRC RTI submissions
payslips
starters and leavers
statutory payments
pension auto-enrolment
CIS processing
year-end payroll
payroll reports
employee self-service
Managed payroll is best suited to businesses that want payroll expertise and support without completely handing over control.
Payroll model Who does most of the work? Best for
Payroll software
Your business
Simple payroll and lower cost
Managed payroll
Shared between provider and business
SMEs wanting support plus visibility
Fully outsourced payroll
Provider
Businesses wanting payroll largely taken off their plate
Important: even if a provider runs payroll for you, HMRC says the employer remains legally responsible for PAYE obligations.
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This quote service is best for UK businesses that want to compare outsourced payroll, managed payroll, payroll software, payslips, pension support, CIS payroll or payroll services for growing teams.
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What type of payroll service do you need? Before comparing providers, decide how much support you actually need.
Payroll option What it means Best for
Payroll software only
You run payroll yourself using software
Small businesses with simple payroll
Managed payroll
Provider supports payroll processing, submissions and reports
SMEs wanting help but some internal control
Fully outsourced payroll
Provider handles most payroll tasks for you
Businesses wanting payroll taken off their plate
Payroll bureau
A payroll specialist or accountant processes payroll
Small businesses and local employers
Payroll plus HR support
Payroll with HR advice, contracts or employee support
Growing teams without internal HR
CIS payroll
Payroll support for construction subcontractors
Trades and construction businesses
International payroll
Payroll for overseas employees or contractors
Businesses hiring outside the UK
Payroll Cost Calculator UK Estimate your monthly payroll cost based on employee numbers, pay frequency, pension duties, CIS, payslips, reports and support level.
Pay frequency
Monthly Weekly Fortnightly Four-weekly Mixed payroll frequencies Weekly payroll usually costs more because it runs more often.
Payroll service type
Payroll software only Managed payroll service Fully outsourced payroll Payroll bureau / accountant Software is usually cheaper; outsourced payroll gives more support.
Business type
Office / admin business Retail / shop Hospitality / restaurant / café Construction / trades Care / healthcare Agency / variable staff Professional services Multi-site business Variable hours, shifts and CIS can increase payroll complexity.
Need workplace pension / auto-enrolment support?
No Basic pension submissions Full auto-enrolment support Includes pension assessment, contributions or pension file uploads.
Need CIS payroll?
No Yes, include CIS Useful for construction businesses paying subcontractors.
Variable pay complexity
Low: fixed salaries Medium: overtime / bonuses High: shifts, tips, commissions or allowances Hospitality, retail and sales teams often need more checks.
Payslip delivery
Digital payslips Employee portal Printed payslips Printed payslips can add admin and postage costs.
Need HR support?
No Basic HR advice Payroll + HR support Useful if you need contracts, absence, holiday or employment advice.
Reporting level
Basic payroll reports Management reports Advanced reports / costing / departments Departmental reporting can be useful for larger teams.
Need year-end support?
Yes No Includes end-of-year payroll checks and employee documents where relevant.
Setup / migration needed?
No setup needed Standard setup / migration Complex migration / multiple payrolls Changing provider mid-year may require extra setup.
Your estimated payroll costs
Estimated monthly cost
£0
Cost per employee/month
£0
Potential monthly saving
£0
Enter your payroll requirements to estimate your costs.
Recommendation will appear here.
This calculator is an estimate only. Actual payroll costs vary by provider, employee count, pay frequency, payroll complexity, pension duties, CIS, HR support, setup, integrations, reporting and service level.
Estimate your payroll cost first Payroll costs depend on more than employee numbers.
Use the calculator below to estimate your likely monthly cost based on:
number of employees
pay frequency
payroll service type
pensions and auto-enrolment
CIS
starters and leavers
variable pay
payslip delivery
HR support
reporting
setup or migration
Then compare provider quotes against your estimate.
Compare payroll providers after using the calculator to check whether your current cost looks competitive.
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: October 2026
Managed payroll providers UK The best managed payroll provider depends on your business size, payroll complexity, support needs and whether you need software, outsourcing, HR support, CIS or international payroll.
Provider Best for Strongest use case Watch out for
ADP Larger SMEs and enterprise payroll
Payroll, HR and workforce management
May be more complex than small businesses need
Moorepay
SMEs wanting payroll plus HR support
Managed payroll and HR services
Check service level and contract terms
Zellis
Larger employers and complex payroll
Enterprise payroll and managed services
May be too large-scale for small firms
MHR Mid-sized and larger employers
HR, payroll and workforce management
Better for broader HR/payroll projects
PayFit SMEs wanting payroll software with support
Cloud payroll and HR tools
Not the same as fully outsourced payroll
BrightPay Small businesses and accountants
Payroll software and bureau use
More self-managed than outsourced
Sage Payroll
Small businesses using Sage
Payroll software and accounting links
May need internal payroll admin
Xero Payroll
Small businesses using Xero
Simple payroll within Xero
Best for simpler payroll needs
QuickBooks Payroll
Small businesses using QuickBooks
Accounting and payroll connection
Less suited to complex payroll
Employment Hero
SMEs wanting HR and payroll together
HR, payroll and employee tools
Check payroll support level
Factorial
SMEs wanting HR plus time tracking
HR, attendance and payroll-adjacent tools
Deel Global teams and contractors
International payroll and EOR
Not needed for UK-only payroll
TopSource Global or outsourced payroll support
Managed payroll and international support
Payroll Options
UK SMEs wanting outsourced payroll
Straightforward UK payroll support
Less suited to global or enterprise needs
Key Takeaways
Managed payroll sits between payroll software and full outsourcing.
Your provider typically handles calculations, submissions and agreed payroll tasks while you retain oversight and approval.
HMRC still holds the employer legally responsible for PAYE even when a third party runs payroll.
Employment Hero currently publishes Managed Payroll at £12 per employee/month, subject to a £120 monthly minimum.
IRIS offers both part-managed and fully managed payroll models.
Weekly payroll, CIS, pensions, variable pay and high staff turnover can all increase cost.
Managed payroll can be particularly useful for SMEs without a dedicated payroll specialist.
Do not compare software-only products as though they provide the same service.
Compare service scope, support, payroll cut-off times, migration and total annual cost.
What Is Managed Payroll? Managed payroll means using an external payroll specialist to perform agreed payroll tasks while your business retains some involvement in the process and that involvement can include:
maintaining employee records
sending variable-pay changes
approving the payroll
authorising employee payments
reviewing reports
The provider then handles agreed tasks such as calculations, payslips, RTI, pension processing and year-end work.
Managed Payroll vs Fully Outsourced Payroll This is the most important distinction on this page.
Managed payroll Fully outsourced payroll
Payroll calculations
Provider
Provider
Employee changes
Usually supplied/maintained by business
Usually supplied by business
Final approval
Business retains approval
Business normally still signs off
Internal involvement
Moderate
Lower
Visibility/control
High
Varies
Best for
Businesses wanting expert help without losing oversight
Businesses wanting payroll largely off their plate
IRIS, for example, explicitly offers both part-managed and fully managed payroll – they are part-managed model lets businesses retain some in-house control while transferring time-consuming payroll tasks to specialists.
For businesses wanting the provider to handle almost everything, see our outsourced payroll guide .
What Does HMRC Say About Managed Payroll? HMRC allows employers to use a payroll provider, bureau or accountant to operate payroll, and the provider can help with:
employee records
payslips
payroll calculations
payments to HMRC
However, the employer remains legally responsible for PAYE tasks even if someone else performs them .
So managed payroll should reduce administration and give you specialist support, but it does not transfer your legal employer obligations.
What Is Included in Managed Payroll?
Service Usually available?
Payroll calculations
Yes
PAYE and NI
Yes
RTI/FPS submissions
Usually
Digital payslips
Usually
P45s/P60s
Usually
Starters/leavers
Usually
Statutory pay
Usually
Pension auto-enrolment
Commonly available
CIS
Provider dependent
Employee payments
Service dependent
HR advice
Often separate/add-on
Always ask for a written service schedule because providers use “managed payroll” differently.
How Much Does Managed Payroll Cost? Managed payroll is usually priced according to employee count and payroll complexity rather than one universal monthly fee.
Common pricing models include:
per employee/month
per payslip
per payroll run
fixed monthly minimum
custom quotation
Costs can increase if you have:
weekly payroll
multiple PAYE schemes
CIS subcontractors
variable hours
commission or bonuses
high starter/leaver volumes
pension administration
advanced reporting
HR support
Illustrative Managed Payroll Cost by Headcount Using £12 per employee/month purely as an illustrative benchmark:
Employees Monthly cost Annual cost
£10
£120.00
£1,440.00
£25
£300.00
£3,600
£50
£600.00
£7,200
£100
£1,200
£14,400
This is not a universal market tariff. Different providers may use minimum fees, custom pricing or separate charges for setup, CIS, pensions and HR support.
IRIS Managed Payroll Worth comparing for: businesses wanting flexible levels of payroll support.
IRIS offers both part-managed and fully managed payroll options and their cloud-based managed service gives businesses visibility into the payroll process while payroll specialists carry out the agreed processing work.
IRIS also gives customers a named payroll manager while maintaining a wider team structure for continuity when that contact is unavailable.
Compare IRIS if you want:
specialist UK payroll support
a named payroll contact
part-managed or fully managed options
visibility through a cloud payroll platform
Employment Hero Managed Payroll Worth comparing for: SMEs wanting payroll professionals plus cloud-software visibility.
Employment Hero describes its current service as having its team manage payroll end-to-end while the customer retains full visibility through its cloud software.
Current included services include:
managed pay runs
HMRC reporting
RTI
pension enrolment
pension declaration support
Their published pricing also makes it easier to benchmark against quote-led competitors.
Moorepay Managed Payroll Worth comparing for: SMEs wanting payroll with broader HR support.
Moorepay is particularly relevant where payroll requirements overlap with:
HR advice
employment support
employee management
broader people software
they use custom pricing, so compare the total payroll-and-HR package rather than assuming a fixed per-employee rate.
Managed Payroll vs Payroll Software
Managed payroll Payroll software
Who runs payroll?
Shared/provider-supported
Your business
Internal workload
Lower
Higher
Specialist support
Core part of service
Support varies
Cost
Higher
Usually lower
Best for
Businesses wanting support and visibility
Simple payroll with internal expertise
Software is usually the better-value route where payroll is straightforward and your team is confident managing it internally.
Managed Payroll vs In-House Payroll
Feature Managed payroll In-house payroll
Payroll expertise
External specialists
Depends on staff knowledge
Admin workload
Reduced
Internal
Control
Shared
Highest
Business continuity
Provider team
Can depend on internal staff
Software
Usually provider-led/included
Business manages it
Best fit
Growing SMEs
Businesses with payroll expertise
Who Should Use Managed Payroll? Managed payroll is particularly worth comparing if:
you still want to approve payroll yourself
your internal team is spending too much time on payroll
you have no dedicated payroll specialist
employee numbers are growing
you pay staff weekly
you have high starter/leaver volumes
you need pension support
you need CIS processing
you want better payroll reporting
payroll currently depends on one person
When Managed Payroll May Not Be Right Managed payroll may be unnecessary if:
your payroll is extremely simple
you have one or two employees
your accountant already provides a good service
you are comfortable using payroll software
At the other end, fully outsourced payroll may make more sense if you want to minimise internal involvement as far as possible.
Benefits of Managed Payroll
You retain visibility
Less dependence on one employee
Access to payroll specialists
Reduced internal administration
easier to scale
Potential Downsides
Potential downside What to check
More expensive than software
Compare service value against time saved
Cut-off deadlines
When must changes be submitted?
Less direct control
What can your team still change?
Extra fees
Check CIS, pensions, starters/leavers and year-end
Third-party data processing
Review security and GDPR arrangements
Provider dependence
Ask about backup contacts and service continuity
What Should Be Included in a Managed Payroll Quote? Ask for a written quote showing:
monthly base cost
price per employee/payslip
minimum monthly charge
number of payroll runs included
RTI submissions
payslip delivery
pension processing
CIS support
starter/leaver charges
statutory pay
P45/P60 processing
year-end support
employee portal
reporting
HR support
software access
integrations
setup/migration fees
support response times
contract and cancellation terms
What Should Remain In-House? Even with managed payroll, your business will usually remain responsible for providing accurate information such as:
new starters
leavers
salary changes
overtime
bonuses
absence
bank-detail changes
employee personal information
You should also retain an internal payroll owner who reviews the service and approves each pay run.
Signs It Is Time to Compare Managed Payroll Providers Consider quotes if:
payroll takes too much time every month
errors are becoming common
you are hiring quickly
weekly payroll is becoming hard to manage
you need CIS or pension support
your payroll depends on one internal person
your current bureau provides too little visibility
your software requires too much manual work
you want more specialist support without fully outsourcing payroll#
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Our Verdict: Is Managed Payroll Worth It? Managed payroll is most useful for businesses that want specialist payroll support without completely giving up oversight of the process.
It sits in a useful middle ground:
more support than payroll software
less internal administration than in-house payroll
more visibility than some fully outsourced arrangements
It is particularly well suited to:
growing SMEs
weekly payrolls
shift-based workforces
companies without an internal payroll specialist
construction/CIS
businesses with frequent starters and leavers
Very small businesses may find software or accountant payroll cheaper, while businesses wanting to remove almost all payroll administration should compare fully outsourced services.
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Frequently Asked Questions What is managed payroll?
Managed payroll is a service where an external payroll specialist performs agreed payroll tasks while your business retains visibility and usually final approval.
Is managed payroll the same as outsourced payroll?
Not necessarily. Managed payroll often involves shared responsibility and greater business visibility, while fully outsourced payroll generally transfers more of the operational workload to the provider.
How much does managed payroll cost?
Pricing varies by employee count and complexity. Employment Hero currently publishes Managed Payroll at £12 per employee/month, subject to a £120 monthly minimum.
Does managed payroll include HMRC RTI?
Many services do. Check whether FPS/RTI submission is included in the quoted service rather than assuming it is.
Am I still responsible for PAYE if I use managed payroll?
Yes. HMRC states that employers remain legally responsible for PAYE tasks even when a third-party provider performs them.
Does managed payroll include pensions?
Many managed services include or offer pension auto-enrolment processing, but confirm whether pension assessment, uploads and declarations are included.
Can managed payroll handle CIS?
Some providers can. Construction employers should specifically check subcontractor verification, CIS deductions, statements and submissions.
Is managed payroll better than payroll software?
Managed payroll offers more specialist support and less internal administration. Software is usually cheaper where your business is comfortable doing the work itself.
Is managed payroll suitable for small businesses?
Yes, particularly where a small business has growing payroll complexity but still wants control and visibility. Very simple microbusiness payroll may be cheaper to run with software or an accountant.
What should I compare between managed payroll providers?
Compare service scope, pricing, payroll cut-offs, employee numbers, pensions, CIS, reporting, support, software access, migration and contract terms.
Related Payroll Guides Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
