Finding the right payslip tool for a UK business can be confusing. You need something that handles PAYE and National Insurance correctly and produces an itemised pay statement that meets section 8 of the Employment Rights Act 1996 — and you need to know whether it also reports to HMRC through Real Time Information (RTI), because a payslip on its own isn't a payroll submission.
Here's how the main options compare. We make Payslip Generator, so we've tried to be clear about where other tools are a better fit. Prices change often — check each provider's website for current plans.
Quick Comparison
| Tool | Auto PAYE & NI | Sends RTI to HMRC | Free option | Best For |
|---|---|---|---|---|
| Payslip Generator | Yes | No | 1 payslip/month | Small employers who need clear payslips |
| HMRC Basic PAYE Tools | Yes | Yes | Yes (fewer than 10 employees) | RTI filing for micro employers |
| Sage Payroll | Yes | Yes | No | Growing businesses |
| Xero | Yes | Yes | No | Accounting and payroll together |
| Paysliper | No | No | Yes | Generic international payslips |
1. Payslip Generator (freepayslipgenerator.co.uk) — Best for Clear Payslips
Price: Free plan (1 payslip a month), with paid plans for more — see our pricing page.
Payslip Generator is built for UK pay. It calculates PAYE from the tax code and the current HMRC income tax bands (including Scottish rates) and National Insurance across the correct earnings bands. Enter a salary and the payslip is produced with every deduction itemised.
Key features:
- Automatic PAYE, National Insurance, student loan and pension deductions
- Professional payslip templates with PDF export
- Email payslips directly to employees
- Bulk payslip generation for multiple employees
- Invoices, quotes, expenses and leave management
- Free calculators — PAYE, take-home pay, National Insurance, holiday, redundancy and more
Pros: Generous free tools. UK tax worked out automatically. Business tools beyond payslips.
Cons: Free plan limited to 1 payslip a month. It doesn't send RTI submissions — you'll still need HMRC-recognised payroll software (such as Basic PAYE Tools) to report to HMRC.
2. HMRC Basic PAYE Tools — Best Free RTI Filing
Price: Free, for employers with fewer than 10 employees
HMRC's own downloadable software calculates PAYE and National Insurance and sends Full Payment Submissions and Employer Payment Summaries. It's designed for reporting to HMRC rather than producing polished payslips, so many small employers pair it with a payslip tool.
Pros: Free and straight from HMRC. Handles RTI.
Cons: Desktop software with a basic interface. Not for 10+ employees. Limited payslip output.
3. Sage Payroll — Best for Growing Businesses
Sage is one of the UK's longest-established payroll providers. Its payroll software handles PAYE, National Insurance, pensions auto-enrolment and RTI submissions, with year-end P60s and P45s for leavers.
Pros: Full payroll compliance. Well known by accountants.
Cons: No free plan. More than a very small employer may need.
4. Xero — Best for Accounting Integration
Xero is a cloud accounting platform with payroll for UK businesses, including RTI filing and pension auto-enrolment, so wages post straight into your accounts.
Pros: Accounting and payroll in one place. Clean interface.
Cons: A paid subscription — expensive if you only need payslips.
5. Paysliper (paysliper.com) — Best for International Payslips
Price: Free
Paysliper is an international payslip generator that supports multiple currencies and countries. It doesn't have UK tax calculations built in — you need to work out PAYE and National Insurance yourself and enter them as deductions.
Pros: Good for generic or international payslips. Simple. Free.
Cons: No automatic PAYE or National Insurance. No HMRC reporting.
How to Choose
- Do you need automatic PAYE and NI? — If yes, avoid generic international tools.
- Do you need to report to HMRC? — Every employer running PAYE must send RTI. If your payslip tool doesn't, use Basic PAYE Tools or full payroll software alongside it.
- How many employees? — Under 10, free tools usually cover it. Beyond that, full payroll software saves time.
- Beyond payslips? — If you also need invoicing, expenses and quotes, an all-in-one tool avoids paying for several.
Our Recommendation
For small UK employers who want clear, accurate payslips, Payslip Generator is a quick way to get them — pair it with HMRC's free Basic PAYE Tools for RTI if you don't have payroll software.
If you'd rather have one system that runs payroll end to end, including RTI and pensions, a paid service such as Sage or Xero is the better fit.