FreeAgent

FreeAgent starts from £33/mo (or free w/ NatWest). Payroll itself carries no additional per-employee charge (£0 (included)). FreeAgent is also free for business customers who bank with NatWest, Royal Bank of Scotland, or Mettle, a distinctive route to a no-cost subscription not offered by other providers in this comparison.

Yes. FreeAgent is on HMRC's recognised payroll software list, submits RTI Full Payment Submissions, and handles workplace pension auto-enrolment, integrating with NOW: Pensions and Penfold specifically. Statutory pay and P60/P45 issuance are included as standard.

Yes. FreeAgent includes Construction Industry Scheme support for deducting and reporting subcontractor payments to HMRC, relevant to FreeAgent's core audience of sole traders, micro limited companies, and contractors, some of whom work in or engage with the construction sector directly.

Limited. FreeAgent's employee self-service and leave management functionality are more basic than dedicated payroll and HR platforms, reflecting its focus on sole traders and very small limited companies rather than growing teams. Businesses expecting to add employees and wanting richer self-service tools may outgrow FreeAgent's payroll module over time.

FreeAgent is built for sole traders, micro limited companies, and contractors who want simple bookkeeping and payroll together rather than a dedicated payroll platform. Rated 4.5 out of 5 on Capterra from 175 reviews, it particularly suits businesses that already bank with NatWest or RBS and can access it free, with UK-based support included.

FreeAgent includes Smart Capture and Radar, native AI tools for capturing receipts and flagging financial issues such as looming tax bills. Third-party Zapier integrations extend it to broader automation workflows, though FreeAgent does not currently publish an official first-party MCP server for direct AI-agent connections.