Sage Payroll vs Xero Payroll
Verified ratings, real UK pricing and the compliance detail, weighed side by side — with a written verdict at the end.
Sage Payroll
Payroll Software
- United Kingdom
- Ireland
- Phone
- Live Chat
- Knowledge Base
- Forum
Xero Payroll
Payroll Software
- United Kingdom
- Ireland
- Live Chat
- Knowledge Base
- Forum
Evenly matched on verified reviews — 4.0 against 4.1. Price and fit will decide this one, not the score.
The short version
What each one costs and how each one rates, side by side. Only the rows where leading means something are marked; vendor and availability are in the overview above.
| Detail | Sage Payroll | Xero Payroll |
|---|---|---|
| What it costs | ||
| Starting priceLowest paid tier, excluding VAT | £12/mo | £1.50/user/month |
| Free version | NoNo | NoNo |
| Free trial | YesYes | YesYes |
| How it rates | ||
| Overall ratingMean of verified Assaylist reviews | 4.0 | 4.1 |
| Verified reviewsVolume is evidence, not a score — this row is not a contest | 266 reviews | 225 reviews |
Highlighted where one clearly leads. Rows without a highlight are not a contest.
How reviewers score them
Across the four dimensions we ask every reviewer about — and, below, the star split each average is built from.
- Sage Payroll
- Xero Payroll
| Dimension | Sage Payroll | Xero Payroll | Gap |
|---|---|---|---|
| Ease of use | 4.0 | 4.0 | Level |
| Value for money | 3.9 | 4.0 | 0.1 to Xero Payroll |
| Customer support | 4.0 | 4.0 | Level |
| Functionality | 3.9 | 4.0 | 0.1 to Xero Payroll |
What each average is made of
Two products can share an average and not share a reputation. These bars show the star split behind each score.
| Product | 5 star | 4 star | 3 star | 2 star | 1 star |
|---|---|---|---|---|---|
| Sage Payroll | 41% (110 reviews) | 33% (88 reviews) | 15% (41 reviews) | 7% (19 reviews) | 3% (8 reviews) |
| Xero Payroll | 44% (100 reviews) | 32% (72 reviews) | 16% (35 reviews) | 6% (14 reviews) | 2% (4 reviews) |
Feature by feature
Everything either vendor publishes, split into what separates them and what they share.
- Both products
- 16%
- Only Sage Payroll
- 950%
- Only Xero Payroll
- 844%
18 features listed across both products.
What only one of them does
Sage Payroll
9- Automated HMRC notices
- Employee records
- Four step pay run
- Holiday and sick leave tracking
+ 5 more in the table below
Xero Payroll
8- Annual legislative updates
- Automatic payroll journal posting
- Employee self service app
- Holiday tracking
+ 4 more in the table below
Showing 18 of 18 features
| Detail | Sage Payroll | Xero Payroll |
|---|---|---|
| Where they differ · 17 | ||
| Automated HMRC notices | YesYes | NoNo |
| Employee records | YesYes | NoNo |
| Four step pay run | YesYes | NoNo |
| Holiday and sick leave tracking | YesYes | NoNo |
| Payroll anomaly detection | YesYes | NoNo |
| Pension auto enrolment | YesYes | NoNo |
| Sage Copilot | YesYes | NoNo |
| Scales to 150 employees | YesYes | NoNo |
| Self serve payslips | YesYes | NoNo |
| Annual legislative updates | NoNo | YesYes |
| Automatic payroll journal posting | NoNo | YesYes |
| Employee self service app | NoNo | YesYes |
| Holiday tracking | NoNo | YesYes |
| Payslips and P60s | NoNo | YesYes |
| Pension auto enrolment and assessment | NoNo | YesYes |
| Pension provider connections | NoNo | YesYes |
| Statutory sick and parental pay | NoNo | YesYes |
| Where they match · 1 | ||
| RTI submissions to HMRC | YesYes | YesYes |
A dash means the vendor has not published a feature list — which is not the same as the feature being unavailable.
How they handle UK obligations
Checked against the vendor's own documentation or HMRC's published list. A dash means we have not verified it — never that it is missing.
| Detail | Sage Payroll | Xero Payroll |
|---|---|---|
| Verified against vendor documentation | ||
| RTI-compliant payroll | YesYes | YesYes |
| Pension auto-enrolment | YesYes | YesYes |
| UK-based support | Telephone support from Sage UK | UK support team |
What each tier costs
Both line-ups on one ladder, so the middle tier on one side sits next to the middle tier on the other.
Sage Payroll
Xero Payroll
Payroll Essentials
£12/mo
- 5 employees included
- 4 step pay run
- HMRC compliance and notices
On the Ignite plan
£1.50/user/monthLower
- Priced per person
- RTI submissions
- Pension auto enrolment
Payroll Standard
£23/mo
- 5 employees included
- Core HR capabilities
- Enhanced pay run
Included with Grow
FreeLower
- Payroll for 1 person included
- Additional people charged per person
Payroll Premium
£34/mo
- 5 employees included
- Comprehensive payroll and HR
- For more complex requirements
Included with Comprehensive
FreeLower
- Payroll for 5 people included
Rungs are matched by position in each vendor’s own line-up, not by what the tiers include — an entry plan on one side may cover more than the other. Prices exclude VAT unless stated, and per-seat plans are quoted per seat. Always confirm on the vendor’s own site.
Which should you choose?
Two answers, because there are two right ones depending on what you need.
Choose Sage Payroll if
- It lists 9 features Xero Payroll does not, including automated hmrc notices.
Choose Xero Payroll if
- It costs less to get started — £1.50/user/month against £12/mo.
- It lists 8 features Sage Payroll does not, including annual legislative updates.
If you already run Xero, its payroll posts straight to your ledger and is the obvious choice. Sage Payroll is the stronger standalone tool, with helpful anomaly detection for a small employer. The decision usually follows your accounting software: Xero users pick Xero Payroll, others find Sage more forgiving.
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