PRICE GUIDE · BUSINESS & PROFESSIONAL · 2026–2027
Payroll Service cost in the UK
£4–£12 per employee. Typically £8.
Outsourced payroll costs £4–£12 per employee per month in the UK, with about £8 typical for a fully managed service. Larger headcounts pay less per person; weekly pay runs, pension admin, small minimum fees and HR add-ons push the cost up.
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HOW MUCH IT COSTS
How much does payroll service cost in the UK?
| Low end | £4 | a larger team on a monthly run |
|---|---|---|
| Typical | £8 | what most people pay |
| High end | £12 | a very small team on weekly pay with extras |
Locufy guide prices for 2026–2027. Updated 2026. A national range, not a quote — enter your town above for real prices from the accountants, solicitors and professional firms near you.
What moves the price
- Fully managed or part-managed — a bureau that runs everything costs more than software you operate
- Headcount — the cost per employee falls as the number of staff on the payroll rises
- Pay frequency — weekly payroll runs cost more than a single monthly run
- Pension auto-enrolment — managing workplace pension submissions adds a per-employee charge
- Minimum fees — many providers set a monthly minimum, which raises the cost for very small teams
- Extras — HR support, expenses and director-only payroll are often priced on top
Professional services prices in the UK are up 12% over five years (ONS Consumer Price Inflation, Other services n.e.c., to 2026 August). Five years ago a typical payroll service would have cost about £7 — an estimate from today's guide price and that index, not a recorded price. Source: ONS MM23 D7FR →
WHAT YOU GET
What a payroll service booking includes
Takes: Set-up takes a few days; each pay run is handled to your pay date. Not included: Bookkeeping, HR consultancy and recruitment are priced separately — see the related guides below.
WHAT PEOPLE BOOK
Common payroll service jobs
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Payroll Service near you, with prices shown
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How to pay less
- Move to a monthly payroll cycle where possible, as weekly runs cost more
- Compare part-managed payroll software with a fully managed bureau for small teams
- Ask for pension auto-enrolment admin to be included in the payroll price
Before you book
- Register as an employer with HMRC before the first payroll run
- Check the payroll provider handles workplace pension duties, which every employer has
- Ask how starters, leavers and pay changes are sent to the payroll bureau
- Confirm the provider's data security, as payroll records hold sensitive personal data
Payroll Service cost: questions people ask
£4–£12 per employee per month, with about £8 typical. A larger team on a monthly run costs the least per head; a very small team on weekly pay with extras costs the most.
A few days for most small businesses, once the provider has employee details, tax codes and pension information.
Report pay to HMRC each pay day under PAYE and enrol eligible staff into a workplace pension, whoever runs the payroll.
Usually, if you run it yourself. A fully managed bureau costs more but takes on the calculations and HMRC filing.
HR advice, bookkeeping and recruitment are separate, though some providers sell them as add-ons.
They are Locufy guide prices for the UK, worked out from published UK payroll service price guides. They give a national range, not a quote.
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