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
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.