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Xero Payroll User Reviews & Pricing For 2025


Last Updated: 20 May 2025
Reviewed By: Ian Wright (Managing Director)

Find out what actual customers of Xero Payroll payroll software think about it.

Or better yet leave your own review.

We also go over how much Xero Payroll costs, what features it offers and what other reviewers think about it.

Sections

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  • Xero Payroll User Reviews
    • Xero Payroll Review Summary
    • Recent Xero Payroll Reviews
    • Submit A Review For Xero Payroll
  • Key Xero Payroll Information
  • Xero Payroll Reviews From Other Websites
  • Xero Payroll Prices
    • Xero Payroll Free Plan / Free Trial
    • Paid Plan Costs
  • Xero Payroll Features
    • Starter Features
    • Standard Features
    • Ultimate Features
    • Other Software Integrations
    • Popular Features List:
  • Pros & Cons
    • Pros
    • Cons
  • Other Payroll Software Topics

Xero Payroll User Reviews

Xero Payroll Review Summary

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Recent Xero Payroll Reviews

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Xero Payroll homepage

Key Xero Payroll Information

Software Name: Xero Payroll
Company Name: Xero Inc
Listed On HMRC Website: Yes
Listed As Free By HMRC: No
Business Size: Small – Medium
Sector Focus: None

Click to visit the Xero Payroll website

Xero Payroll Reviews From Other Websites

  • Trustpilot: 4.2 out 5 based on 5,831 reviews.
  • iPhone App Store: 4.6 out of 5 based on 1,800 reviews.
  • Android App Store: 4.5 out of 5 based on 7880 reviews.

Xero Payroll Prices

Xero Payroll prices

How much does Xero Payroll cost? Here is what they publish on their website:

Xero Payroll Free Plan / Free Trial

  • Offers A Free Plan? No
  • Offers A Free Trial? Yes
  • How Long Does The Free Trial Last? 30 days

Paid Plan Costs

Here are the names for for the various plans Xero Payroll offers and how much they cost per month:

  • Starter: £15
  • Standard: £15
  • Ultimate: £27.50

Xero Payroll Features

Xero Payroll prices

Starter Features

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Submit VAT returns to HMRC
  • Capture bills and receipts with Hubdoc
  • Automatic CIS calculations and reports
  • Short-term cash flow and business snapshot
  • Payroll
  • Claim expenses
  • Track projects
  • Analytics Plus
  • Submit CIS returns

Standard Features

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Submit VAT returns to HMRC
  • Capture bills and receipts with Hubdoc
  • Automatic CIS calculations and reports
  • Short-term cash flow and business snapshot
  • Bulk reconcile transactions
  • Payroll
  • Claim expenses
  • Track projects
  • Analytics Plus
  • Submit CIS returns

Ultimate Features

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Submit VAT returns to HMRC
  • Capture bills and receipts with Hubdoc
  • Automatic CIS calculations and reports
  • Short-term cash flow and business snapshot
  • Bulk reconcile transactions
  • Use multiple currencies
  • Payroll
  • Claim expenses
  • Track projects
  • Analytics Plus
  • Submit CIS returns

Other Software Integrations

  • BlueHub
  • LimeCloud
  • Outserve

Popular Features List:

  • Run Unlimited Payrolls: No
  • Automatic Tax Filing & Payments: Yes
  • Live Customer Support: Yes
  • Ability To Manage Employee Benefits: Yes
  • Employee Access to Platform: Yes
  • Direct Deposits: Yes
  • Expense Reimbursements: Yes
  • Time Off Tracking: £27.50
  • Handle Deductions From Pay: Yes
  • Debt Repayment From Pay: Xero Inc
  • Background Checks: No
  • Offers An API: Yes
  • Create Payslips: No
  • Create P45: No
  • Create P60: No
  • Bonus Incentive Pay: No
  • Pension Filing: Yes
  • Statutory Payments (E.g. Sick Pay, Maternity Pay, etc.): No
  • Direct HMRC Submissions: Yes
  • RTI Compliant: No

Pros & Cons

The following pros and cons come from Trustpilot and other third-party review sites from around the web.

Pros

  • I like the UI, which has always made it easy to use. Enjoy the bank reconciliation and the use of bank feeds and add ons.
  • Ease of use, intuitive. Lots of good features, but I don’t use most of them
  • Xero gives you whatever you need, connects you with other departments such as creating a purchase order for employee hiring and instantly send notification to accounting departments, making them match the correct invoice with the correct purchase order. In addition to that, expense tracking an employee is a great feature that lets you to have a helicopter view of it. Can be used in small or large companies, very effective and efficient features.
  • Comprehensive software with tons of information and analysis. Easy to use for processing bills and creating invoices. Really easy log in connecting to your phone so you don’t have to use passwords
  • The flexibility of correcting errors is awesome

Cons

  • Inventory can be a lot better. It was always an issue for customers to use and understand and seems outdated compared to the rest of the software
  • Constant issues with bank feeds from my HSBC Kinetic app account. Caused me countless hours trying to sort duplicate bank lines and transactions. Actually cost me money as needed my accountants to investigate it all. The issue is still not resolved a year on despite me submitting support requests to get it fixed. Poor for what I see as quite expensive for small business
  • Adding new features on the product would not result well if you are constantly changing your systems or procedures.
  • Would love to attend a session with Xero to learn more about the different features, as a beginner it can be quite overwhelming but can see much potential it has for our small business
  • Credit notes can not be paid via the bank feed, massive flaw

Other Payroll Software Topics

  • Best Small Business Payroll Software
  • List of UK Payroll Software Companies
  • Free UK Payroll Software
  • How Much Does Payroll Software Cost? UK Cost Comparison

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