Xero Payroll UK pricing: people, plans and extra fees

How much does Xero Payroll cost in the UK?

This guide covers the UK plans and public rates reviewed on 16 October 2026, including the published UK payroll plans. It uses regular monthly prices, with no introductory offer. The examples are fictional and do not claim a completed pay run or a private subscription quote.

Start with the base plan and included payroll people

Check Xero’s UK pricing page for the current rates and terms. The UK plan matrix does not list Payroll in Simple and lists a maximum of 200 payroll people for the modelled plans.

These accounting plans are not interchangeable. For example, the matrix caps Ignite at 20 invoices and 10 bills, while other tiers add capabilities. More included payroll people alone do not establish the lowest suitable total.

Count distinct people across the calendar month

Xero’s payroll subscription explanation counts unique employees included in pay runs in a calendar month. Scheduled, unscheduled and final pay can count, including a blank or nil payslip. A terminated employee paid in the month can still count. The posted date determines the month, including when a run is reverted and reposted in a different month.

Assume 7 employee records exist, but P07 is not included in any of these posted runs. The eight lines represent 6 distinct people. P01 and P02 appear twice; P05 still counts despite the nil entry, and P06 appears in final pay. This is a counting exercise, not an actual payroll or a historical September invoice.

Review the Gross to Net report by posted date, as Xero recommends, before treating a stored employee count or number of payslips as the charged population.

Calculate the monthly software subtotal

The starting example applies the current reviewed rates to six assumed counted people. For each plan, the payroll extra is the number above its allowance multiplied by its additional-person rate. The accounting base remains part of the subtotal.

Try eleven people: Grow’s base plus payroll is £54 and Ultimate’s is £71, before other costs. At 25 people, Comprehensive and Ultimate both give £85; at 26, the figures are £86.50 and £86 respectively. These are arithmetic comparisons with different accounting capabilities, not a declaration of the best plan.

The calculator models 0–200 distinct payroll people and optional domestic bank-payment usage. All amounts exclude VAT, salaries, pension contributions, professional services and other add-ons. It holds the reviewed rates fixed for the selected month and does not calculate payroll tax or execute payments.

Keep payroll processing separate from transferring money

The Crezco-processed payment fee page describes a separate allowance shared by domestic GBP bill and payroll payments made through the bank-account route. Additional transactions cost 20p each, excluding VAT.

A single payment can settle several bills for the same supplier. Unused allowance does not carry forward. Card and international payments follow different fees and are outside this calculator.

As a separate usage assumption, ten domestic transactions on Grow exceed its five-payment allowance by five: 5 × £0.20 = £1. Adding that to the six-person £46.50 subtotal gives £47.50 for the modelled software and payment fees, excluding VAT and other costs. Ten payment transactions are not derived from the eight payroll lines above.

What about introductory offers and employee access?

The reviewed pricing terms apply the introductory discount to the qualifying base subscription, with additional charges excluded unless expressly stated. This calculator uses regular base prices and applies no offer. Check actual eligibility, duration and renewal terms before budgeting for a promotion.

Xero’s UK payroll overview describes Xero Me for employee payslips, leave and timesheet workflows. An employee-facing app, an administrator’s access and the counted payroll population are different things. Check the required workflow and roles in the actual subscription instead of pricing solely from the number of people who log in.

A bookkeeper or payroll bureau may charge separately for setup, running payroll and ongoing support. Their service fee is not established by Xero’s software rate. Price migration, opening information, integrations and the agreed handover separately where required.

What should a useful payroll quote specify?

• Organisation and region: the UK subscription, retained accounting plan and standard monthly base.
• Payroll scope: distinct people in posted monthly pay runs, included allowance and the rate for the remainder.
• Work pattern: expected scheduled, unscheduled and final-pay entries, plus how the count is reconciled.
• Payment route: whether Xero / Crezco domestic bank payments are used, shared supplier-payment usage and any other payment method.
• Other costs: VAT, required add-ons, setup, migration, professional services and offer-to-renewal changes.
• Ownership: who reviews the figures, maintains access, handles exceptions and confirms the first live process.

Use fictional or authorised sample information during evaluation and record actual observations. The budget model does not prove that a particular payroll setup is suitable or that a migration has been completed.

Choose the right next pricing question

For the wider accounting shortlist and a multi-year base-subscription comparison, use UK accounting software costs. Enter actual additional monthly fees separately there. For the accounting workflow and UK plan differences, read Xero versus QuickBooks.

If you are buying practice-management tools or client subscriptions as an accountant, use the separate Xero pricing for accountants guide. The Xero profile and accounting directory provide the broader context.

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