Sage Payroll

UK payroll software from Newcastle-based Sage, filing RTI and pensions for up to 150 staff

Quick Overview

Company Sage (UK) Ltd, part of The Sage Group plc (Companies House 01045967)
Category payroll
Headquarters Newcastle upon Tyne, United Kingdom
Founded 1981
EU Presence United Kingdom (adequacy decision, outside the EEA)
Open Source No
Pricing Payroll Essentials from £12/month excl. VAT for up to 5 employees (+£2.40/employee), Standard from £23 (+£4.40/employee), Premium from £34 (+£6.40/employee); up to 150 employees; free for the first month
Free Option 1-month free trial
Replaces ADP, Gusto, Xero Payroll

Detailed Review

Sage (UK) Ltd has been building British payroll software since 1981, and Sage Payroll is the modern, cloud version of that four-decade relationship with HMRC: RTI submissions, P60s and P45s, and pension assessment and auto-enrolment all run inside the product rather than as an add-on.

Pricing is published and scales with headcount — Essentials starts at £12 a month excluding VAT for five employees, with Standard and Premium adding HR features — and a genuine one-month free trial lets you run a real pay cycle before paying anything. For a UK company outgrowing spreadsheets, it is a straightforward first payroll system.

The scope is deliberately UK-only, which is the trade to make peace with: nothing about Sage Payroll helps you pay anyone outside Britain, and past 150 employees you are pointed at Sage 50 Payroll or a larger product instead.

It also sits inside a much bigger group — Sage plc reports well over £2 billion in annual revenue — which cuts the other way from the smaller vendors on this list: less personal, but backed by decades of continuity a five-year-old payroll startup cannot offer. Ask what its AI "Copilot" actually automates versus what it merely flags, before relying on it.

What Sage Payroll does well

  • Published per-employee pricing, genuine 1-month free trial
  • RTI, pensions, P60s and P45s handled inside the product
  • Over 40 years of UK payroll and HMRC experience
  • Scales from 5 to 150 employees without switching products
  • UK-based support

Where Sage Payroll falls short

  • United Kingdom only
  • Outside the EEA, so a separate case for GDPR transfers
  • Beyond 150 employees you need a different Sage product
  • Large listed vendor rather than a specialised payroll boutique

Standout feature. Forty-plus years of RTI and HMRC compliance built into a product still priced for a five-person team.

Pros and Cons

Pros

  • Published per-employee pricing, genuine 1-month free trial
  • RTI, pensions, P60s and P45s handled inside the product
  • Over 40 years of UK payroll and HMRC experience
  • Scales from 5 to 150 employees without switching products
  • UK-based support

Cons

  • United Kingdom only
  • Outside the EEA, so a separate case for GDPR transfers
  • Beyond 150 employees you need a different Sage product
  • Large listed vendor rather than a specialised payroll boutique

Alternatives to Sage Payroll

See all payroll →

Frequently Asked Questions

What is Sage Payroll?

Sage (UK) Ltd has been building British payroll software since 1981, and Sage Payroll is the modern, cloud version of that four-decade relationship with HMRC: RTI submissions, P60s and P45s, and pension assessment and auto-enrolment all run inside the product rather than as an add-on.

Pricing is published and scales with headcount — Essentials starts at £12 a month excluding VAT for five employees, with Standard and Premium adding HR features — and a genuine one-month free trial lets you run a real pay cycle before paying anything. For a UK company outgrowing spreadsheets, it is a straightforward first payroll system.

Where is Sage Payroll based?

Sage Payroll operates from Newcastle upon Tyne, United Kingdom, which places it under United Kingdom (adequacy decision, outside the EEA).

What does Sage Payroll cost?

Payroll Essentials from £12/month excl. VAT for up to 5 employees (+£2.40/employee), Standard from £23 (+£4.40/employee), Premium from £34 (+£6.40/employee); up to 150 employees; free for the first month. 1-month free trial.

Who is Sage Payroll best for?

UK small businesses wanting straightforward, HMRC-compliant payroll. Forty-plus years of RTI and HMRC compliance built into a product still priced for a five-person team.

What are the drawbacks of Sage Payroll?

United Kingdom only. Outside the EEA, so a separate case for GDPR transfers. Beyond 150 employees you need a different Sage product. Large listed vendor rather than a specialised payroll boutique.

Is Sage Payroll a good alternative to ADP?

Sage Payroll is built as a European alternative to ADP: UK payroll software from Newcastle-based Sage, filing RTI and pensions for up to 150 staff. It will not be a like-for-like feature match in every respect, so check the review above for where the two genuinely differ before switching.

How does Sage Payroll compare to other payroll tools?

Sage Payroll is one of several European payroll tools we cover. It is most often compared with ADP, Gusto, Xero Payroll.

Who worked on this review

Three people touch every tool page: one writes it, a second edits it, and a third checks the compliance and pricing claims against the vendor's own documentation.

Sebastiaan Smits
Written by

Sebastiaan Smits

Founder & Editor · Netherlands

Selects the tools, writes the reviews, and checks where each company is actually established.

Ingrid Halvorsen
Edited by

Ingrid Halvorsen

Managing Editor · Oslo, Norway

Runs the review process and decides when a page is ready to publish or needs another pass.

Daniel Brandt
Fact-checked by

Daniel Brandt

Privacy & Compliance Researcher · Berlin, Germany

Checks the compliance claims: where the company is established, where the data sits, and what the DPA actually says.

Read our editorial process for how we source, verify and update these pages — and how we keep affiliate income separate from what we recommend.

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