Independent guideAll prices in GBPPrices checked Updated

Best HR Software for Startups in the United Kingdom (2026)

A UK startup does not need HR software for its first hire. It needs a right to work check, a written statement on day one, employers' liability insurance, PAYE payroll and a workplace pension. When you want an affordable HRIS, Connecteam has a free plan for a small team, Breathe charges a flat £24 a month for its smallest band, and Deel charges £4 an employee a month with no minimum.

Independent guide by SME Compare. How we compare

Our top picks for startups

1Best if you want to start free
Connecteam logo

Connecteam

4.6GetApp£0.37/user/mo above 30

Connecteam is here for its free plan, which lets a founder move the team's people admin into one app before spending anything. Past the free cap, the paid HR hub is one flat £22 a month for your first 30 users, then a small charge for each user above that.

  • Free plan: Yes (up to 10 employees)
  • One flat £22 hub fee covers the first 30 users once you pay
  • Built for staff who work shifts rather than at a desk

Watch out: Payroll is not built in, so PAYE and pensions run in a separate tool. The payroll and right to work columns below show what else sits outside it.

2Best for a predictable flat bill
Breathe logo

Breathe

4.3Capterra£0 (flat tiers)

Breathe is built in the UK and prices each business by headcount band rather than per person, so the bill moves only when the team crosses into the next band. The smallest band is £24/mo (up to 10), and the cost table shows each step after it.

  • A flat price per band, not per employee
  • Right to work: Yes (documents)
  • GDPR: Yes (UK servers)

Watch out: A team at the bottom of a band pays the same as one at the top, and payroll connects in from a separate tool. Check the feature table below before counting on recruiting.

Visit Breathe
3Best for paying per head from the first hire
Deel logo

Deel

4.9Capterra£4/emp/mo

Deel's HR plan is £4 an employee a month and nothing else: no base fee and no minimum, so a team of three pays for three people. The same account sells an Employer of Record, which matters if one of your first hires lives outside the UK.

  • No base fee and no minimum headcount
  • Global hiring: Yes (150+ countries)
  • Employer of Record on the same account at £448 a person a month

Watch out: The cost table prices its entry HR plan, so check the feature table below before counting on performance reviews or recruiting.

Visit Deel
4Best for HR and UK payroll from one supplier
Employment Hero logo

Employment Hero

4.4Capterra£4/emp/mo

Employment Hero's HR plan is £4 an employee a month with a £40 monthly minimum. Its own UK payroll, sold alongside, means the employee record and the payslip come from the same supplier instead of two.

  • Payroll: Native (UK PAYE), sold alongside
  • Right to work: Yes
  • One employee record for HR and pay

Watch out: The £40 minimum is the whole bill until the per-employee charge passes it, and payroll is a separate charge on top.

5Best if you want a tool made for startups
CharlieHR logo

CharlieHR

4.7Capterra£0 (flat tiers)

CharlieHR is a UK platform made for startups and small companies, priced per headcount band rather than per person. Its smallest band is £21/mo (1-4), and the bands above it step up as the team grows, which the cost table shows at each size.

  • Made in the UK for startups and small teams
  • A flat price per band, not per employee
  • GDPR: Yes (UK servers)

Watch out: Payroll connects in from a separate tool, and the feature table below shows what its bands limit or charge extra for, including time tracking.

Compare the picks at your numbers

Enter your business details to see what each option would cost you. Prices are live from our database and shown in pounds sterling.

Staff overseas?
5 ProvidersConnecteam logoConnecteamBreathe logoBreatheDeel logoDeelEmployment Hero logoEmployment HeroCharlieHR logoCharlieHR
Est. Cost /mo (GBP)£0/moCheapest£24/mo£37/mo£40/mo£47/mo
Visit Breathe
Visit Deel
Ratings
4.6GetApp (5,298)4.3Capterra (45)4.9Capterra (4,278)4.4Capterra (239)4.7Capterra (37)
Costs & Pricing
£0.37/user/mo above 30£0 (flat tiers)£4/emp/mo£4/emp/mo£0 (flat tiers)
£22/mo (Basic)£24/mo (up to 10)£0£0£21/mo (1-4)
£22/mo (Basic hub fee)£24/moNone£40/mo£21/mo+
Per hub: flat for the first 30 users, then per userFlat tiers per businessPer-employee (no minimum) + modular payrollPer-employee (published rate card)Flat tiers per business
Yes (up to 10 employees)NoNoNoNo
NoNoNoNoNo
UK Compliance & Payroll
Not statedStrongYes (global)YesStrong
Not statedYes (documents)YesYesYes (documents)
YesYes (UK servers)YesYesYes (UK servers)
No (integration)IntegrationNative (global)Native (UK PAYE)Integration
NoVia integrationYesYesVia integration
YesYesYesYesYes
YesYesYesYesYes
Yes (Operations Hub)Add-onYesYesLimited
LimitedYesYes (Advanced+)YesYes
YesYesYesYesYes
NoNoYes (150+ countries)NoNo
——£448/emp/mo——
AI
Native (AI course creator)LimitedNative + add-ons (Deel AI, Akai agents)Native (Hero AI: SmartMatch)Announced (Grow)
API only (Expert and above)Via 3rd-party (community)Native MCP (official)Via 3rd-party (Zapier)API only
Features & Integrations
YesYesYesYesYes
NoAdd-onAdd-onYesAdd-on
YesAdd-onYes (Advanced+)YesNo
YesYesYesYesYes
Xero, QBO, ZapierXero, Sage, QBO, SlackXero, QBO, NetSuite, SageXero, QBO, SageSlack, Xero, Google
24h chat, emailUK-based24/7OnlineUK-based
Estimates based on 10 employees. Rates can change without notice, confirm current pricing with the provider before signing on.
How we calculate this
  • Estimated cost: each provider’s published prices and rates applied to the inputs you set above (such as volume, team size, or invoices), plus any fixed monthly fees.
  • Providers with an incomplete cost and quote-only providers are never ranked as the cheapest while a complete-cost option exists.
  • These are estimates. Published rates can change and your final pricing depends on your business, so confirm current pricing with the provider before switching.

How we chose. We priced every HR platform we list on its entry HR plan at 3, 10, 30, 50 and 100 staff, through the same cost engine as the HR software comparison. The picks are platforms that publish a price we can cost, and the table above ranks them live at your own headcount. Affiliate status never changes the order.

A UK startup tends to buy HR software at the wrong time. Too early, and you are paying for a system to manage two people the founders already sit next to. Too late, and contracts live in personal inboxes, holiday is tracked in a spreadsheet and nobody can find the copy of the new hire's passport. This guide covers the time between: what the law asks of a first employer in the UK, what an HRIS costs from 3 staff to 100, and which pricing shape suits how you plan to hire. If your business is already established, our guide to HR software for small business is the better read.

Do you need HR software before your first hire?

No. What a first hire needs is a set of checks and documents, payroll that reports to HMRC and a workplace pension. None of it requires an HR system.

What the law asks of a UK employer from the first employee:

ObligationWhenSource
Check the person's right to work in the UKBefore they start. Check again before a time-limited permission expires, and keep the copies for the whole employment plus 2 yearsGOV.UK (Home Office)
Give a written statement of employment particularsThe principal statement on the first day, the wider statement within 2 months, and any change within 1 month of making itGOV.UK
Take out employers' liability insuranceAs soon as you become an employer: at least £5 million of cover from an authorised insurer, with the certificate where staff can see itGOV.UK
Register as an employer with HMRCBefore the first payday, and no more than 2 months before you start paying peopleHMRC
Give a payslipOn or before every paydayGOV.UK
Start workplace pension dutiesOn the day your first member of staff starts work, even if nobody needs enrolling yetThe Pensions Regulator
Re-enrol and re-declareEvery 3 years, whether or not anyone has left the schemeThe Pensions Regulator
Give paid holidayAt least 5.6 weeks a year for most workersGOV.UK
Pay Statutory Sick PayFrom the first day of sickness, at the lower of the weekly rate or 80% of the employee's average weekly earningsHMRC

Two of those changed this year. Since 6 April 2026, Statutory Sick Pay has had no waiting days and no lower earnings limit, and Paternity Leave and Unpaid Parental Leave are rights from the first day of employment, according to the government's Employment Rights Act timeline. If a written statement template predates April, check its sick pay and family leave wording.

Several of the lines above are payroll jobs, so payroll comes first. Our payroll software guide for small business covers HMRC's free option, the pension rules and what each paid tool costs per employee. HR software earns its place later, once every new starter means a contract, a right to work copy, bank details, a pension letter and a holiday allowance set up by hand.

HR software pricing for a UK startup at 3, 10, 30, 50 and 100 staff

At 3 staff a monthly minimum or a band fee is often the whole bill. By 100 staff the per-employee rate does most of the work, except on banded plans and where one flat fee covers a block of users. The table prices every HR platform we list at five team sizes, through the same cost engine as the comparison above.

Provider3 employees10 employees30 employees50 employees100 employees
Connecteam logoConnecteam£0£0£21.67 min£29.07£47.57
Access PeopleHR logoAccess PeopleHR£9£30£90£150£300
Deel logoDeel£11.22£37.40£112.20£187£374
Sage HR logoSage HR£15£50£150£250£500
Factorial logoFactorial£16.20£54£162£270£540
CharlieHR logoCharlieHR£21 min£47£185£323£431
Breathe logoBreathe£24 min£24 min£99£99£175
Employment Hero logoEmployment Hero£40 min£40 min£120£200£400
BambooHR logoBambooHR£200 min£200 min£243£405£810
HiBob logoHiBobGet quoteGet quoteGet quoteGet quoteGet quote
Multiplier logoMultiplierGet quoteGet quoteGet quoteGet quoteGet quote
Oyster HR logoOyster HRGet quoteGet quoteGet quoteGet quoteGet quote
Papaya Global logoPapaya GlobalGet quoteGet quoteGet quoteGet quoteGet quote
Payoneer Workforce Management logoPayoneer Workforce ManagementGet quoteGet quoteGet quoteGet quoteGet quote
Personio logoPersonioGet quoteGet quoteGet quoteGet quoteGet quote
Rippling logoRipplingGet quoteGet quoteGet quoteGet quoteGet quote

Estimated monthly cost in pounds on each provider's entry HR plan, at the price each provider publishes; we do not add or remove VAT. Prices published in US dollars are converted at 0.7471 USD to GBP, captured 12 June 2026. Plans and pricing checked October 2026. "min" means the provider's monthly minimum is the whole bill at that size, and "from" marks a published starting price. Get quote means the provider does not publish a price we can cost.

How the pricing works: bands, per head and a free tier

The five picks use four pricing shapes, and the shape tells you more about next year's bill than any single figure:

ProviderFree planBase feePer employeeMonthly minimumContract
ConnecteamYes (up to 10 employees)£22/mo (Basic)£0.37/user/mo above 30£22/mo (Basic hub fee)No
BreatheNo£24/mo (up to 10)£0 (flat tiers)£24/moNo
DeelNo£0£4/emp/moNoneNo
Employment HeroNo£0£4/emp/mo£40/moNo
CharlieHRNo£21/mo (1-4)£0 (flat tiers)£21/mo+No
  • Free to a cap, then a flat fee, then per user. Connecteam costs nothing until its free cap, then one hub fee covers a block of users, and only the users above that block add to the bill.
  • A flat price per headcount band. Breathe and CharlieHR charge one fee for the band your team sits in. A hire that keeps you inside the band costs nothing extra; the hire that tips you into the next band raises the whole bill at once. Per person, a band works out cheapest at the top of its range.
  • Per head with no minimum. Deel charges the same rate for every employee from the first, so the bill grows in a straight line.
  • Per head above a minimum. Employment Hero charges per employee but never less than its monthly minimum, so a very small team pays the minimum.

If you expect to double in a year, price the platform at the headcount you expect then: the 30 and 50 columns of the cost table are there for that. The contract column matters for the same reason, because a startup that outgrows its first tool should not be paying out the rest of a year to leave.

HR platforms with a published price

Of the 16 HR platforms we list, the cost table can price Access PeopleHR, BambooHR, Breathe, CharlieHR, Connecteam, Deel, Employment Hero, Factorial and Sage HR. The rest price on request: HiBob, Multiplier, Oyster HR, Papaya Global, Payoneer Workforce Management, Personio and Rippling.

Some of the quote-only names are full HR systems sold through a demo, and others are Employer of Record services with no standalone HR plan; the Pricing model row in our full HR software comparison says which. A published price is not always a sterling one: some platforms publish in US dollars, which we convert at the rate under the cost table.

Is HiBob cost-effective for a small business?

We cannot tell from a published price, because HiBob prices on request and so is not costed in the table. Our data describes the market it sells to as Mid-market / scaling UK SMB (50-500). If it is on your shortlist, ask three things in the quote:

  1. The price per employee at the headcount you expect in a year, and any minimum, so you can set it against the 30 and 50 columns above.
  2. Which modules the price includes. A quote for core HR alone is not comparable with a published plan that includes onboarding, documents and time off.
  3. The contract length and notice period. Our contract cell for HiBob reads Annual.

HR and payroll in one system, or two

Two systems work fine. The payroll tool files to HMRC and, if it supports auto-enrolment, runs the pension assessment; the HR tool connects to it. One system makes sense when you have not chosen payroll yet and want a single employee record:

ProviderPayrollPension auto-enrolment
ConnecteamNo (integration)No
BreatheIntegrationVia integration
DeelNative (global)Yes
Employment HeroNative (UK PAYE)Yes
CharlieHRIntegrationVia integration

"Integration" means the payroll tool you connect does the HMRC filing and the pension assessment, not the HR tool. That works, but it means two logins and two places a bank detail or salary can disagree. Payroll from Deel or Employment Hero is priced separately from their HR plans, so cost it in our payroll software comparison before you treat one system as the cheaper route.

Whichever you choose, the pension declaration is yours. The Pensions Regulator says it is your legal duty to make sure the declaration of compliance is completed on time and correctly, even if someone else fills it in for you.

HR software features a startup pays extra for

Applicant tracking, performance reviews and time tracking are where entry plans differ. A team of three hires through email and gives feedback over coffee. A team of thirty is often running several open roles and wants a review cycle people can see.

ProviderApplicant trackingPerformance reviewsTime tracking
ConnecteamNoLimitedYes (Operations Hub)
BreatheAdd-onYesAdd-on
DeelAdd-onYes (Advanced+)Yes
Employment HeroYesYesYes
CharlieHRAdd-onYesLimited

"Add-on" means an extra charge on top of the price in the cost table, and a plan name with a plus sign means the feature starts on that plan rather than the entry one. On a per-employee plan, moving up a tier later raises the rate for the whole team, so if you will be hiring every month, price the plan with recruiting in it now.

Remote-first and hybrid startups: right to work, written statements and the HR tool

A remote team changes two legal steps rather than the software: how you check the right to work of someone you may never meet, and what the written statement says if they work abroad. The HR tool's job is to hold the evidence and handle leave and documents from a phone.

Right to work. An applicant who is not a British or Irish citizen can usually give you a share code to check online. British and Irish citizens cannot get a share code, so for them you either check original documents, such as a passport, or use an identity service provider that offers Identity Document Validation Technology (IDVT). For a hire you never meet in person, that second route is usually the practical one.

Written statement. If someone has to work outside the UK for more than a month, the principal statement must also say how long they will be abroad, what currency they will be paid in, any extra pay or benefits, and the terms of their return. A hybrid team working from home in the UK does not trigger that; a first hire spending the winter abroad does.

ProviderRight to workGlobal hiringMobile app
ConnecteamNot statedNoYes
BreatheYes (documents)NoYes
DeelYesYes (150+ countries)Yes
Employment HeroYesNoYes
CharlieHRYes (documents)NoYes

Where a right to work cell says documents, read it as somewhere to store the evidence, not a check the tool runs for you. The duty to check sits with you as the employer, and employing an illegal worker without a correct check can mean a civil penalty.

If your first hire lives in another country and you have no company there, the usual route is an Employer of Record, priced per person and far above an HR seat; Deel's is £448/emp/mo. Our guide to HR software for remote teams compares the Employer of Record providers, and payroll software for contractors covers paying people who are not employees.

The thresholds that change a UK startup's HR duties

The first-hire duties are in the table at the top of this page, and the payroll and pension thresholds, including the Employment Allowance, are in our payroll guide for small business. These are the later triggers:

  • Five employees. Your health and safety policy has to be written down and shared with staff. Below five, it only has to exist.
  • From 30 October 2026. Every employer must take all reasonable steps to prevent sexual harassment of its employees and must not permit harassment by third parties, according to the government's timeline. A written policy and a way to report it are the obvious first steps.
  • From 1 January 2027. The qualifying period for unfair dismissal falls to 6 months for dismissals from that date, on the same timeline. Probation reviews that used to feel informal become worth writing down.
  • Twenty redundancies. Making 20 or more employees redundant at one establishment within 90 days brings in the collective consultation rules.
  • A £3 million pay bill. Above that you pay the Apprenticeship Levy at 0.5% of the pay bill, less a £15,000 annual allowance.

If you are moving off Deel, our guide to Deel alternatives for UK businesses compares the main options on the same live prices.

Frequently asked questions

What is an affordable HRIS for a UK startup?

One whose pricing shape fits how fast you will hire. A free plan suits a founder with a few staff (Connecteam). A flat band suits a team that hires in bursts (Breathe, CharlieHR). A per-head rate with no minimum suits steady growth (Deel, £4 an employee a month). The cost table on this page prices every option we list in pounds at 3, 10, 30, 50 and 100 staff.

Can I employ my first person in the UK without HR software?

Yes. Payroll software and a starter checklist cover the legal minimum for a first employee, and the obligations table on this page links each duty to its GOV.UK, HMRC or Pensions Regulator page. HR software starts to pay for itself when new starters' paperwork and holiday requests are eating hours every week.

How much does HR software cost for 50 employees in the UK?

It depends on the pricing shape more than the brand. A per-head plan charges for every one of the 50: Deel's rate is £4 an employee a month and Employment Hero's £4. A banded plan such as Breathe or CharlieHR charges one fee for the band you are in, starting from £24 and £21 a month for their smallest bands. The 50-staff column of the cost table shows each platform's estimate in pounds.

Can I change HR software later?

Yes. Before you cancel, export every employee file, contract and right to work copy. You must keep right to work copies for as long as someone works for you and for 2 years after they leave, and that duty does not end with the subscription.

How does SME Compare choose the best hr software for startups?

We are independent and not owned by any provider. Our picks weigh price, features and UK fit for startups, using live pricing from our database, last checked 4 October 2026. The comparison table lets you estimate each option at your own numbers. See How we compare for our full method.

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