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HR software for UK small businesses: 7 tools compared

For a UK team of under 10, Breathe (£24 a month per business) and CharlieHR (£21 to £47) have the lowest fixed prices, BrightHR sells a 24/7 employment-law advice line, and BrightHR and HiBob run UK payroll themselves. Worklayer, our own product, is £9 per employee per month with every module and AI agents, free for up to 3 employees, and doesn't run UK payroll.

How to choose HR software as a UK small business

Five questions sort the field quickly. Ask each vendor for the answer in writing before you sign.

  1. 1.

    The total price in pounds, with every module

    Add up the plan and every add-on you'll use: rotas, recruiting, expenses, payroll, advice. Check whether the price is per employee or per business, and whether it excludes VAT. All prices on this page exclude VAT. BambooHR publishes its prices in US dollars only.

  2. 2.

    Minimum fees for small teams

    Several tools charge a floor however small you are. BrightHR's price calculator never goes below about £83 a month, BambooHR charges a flat $250 a month or more up to 25 employees, and Personio adds a one-time setup fee. Breathe and CharlieHR price by size band, so a team of 3 pays the same as a team of 4 or 10.

  3. 3.

    UK payroll in the same system

    Only BrightHR and HiBob run UK payroll themselves, and both charge for it separately. Breathe, CharlieHR and BambooHR connect to Xero Payroll, Personio prepares payroll for Xero, Sage 50 or your accountant, and Worklayer exports a monthly payroll snapshot for your provider or accountant. If you already pay an accountant to run payroll, an export is often enough.

  4. 4.

    Employment-law advice, included or not

    Software keeps records; it doesn't tell you how to handle a grievance or a dismissal. BrightHR sells a 24/7 HR and employment-law advice line in its Enhanced package, and CharlieHR sells CIPD-qualified HR advisors in Charlie Grow. None of the other five tools on this page includes an advice line.

  5. 5.

    A free plan or a trial

    Worklayer is free for up to 3 employees with no time limit. Breathe has a 14-day trial, CharlieHR and BambooHR 7 days, all without a sales call. BrightHR, HiBob and Personio start with a demo. Try the tool with your real leave policy and a real starter before you commit.

The seven tools at a glance

In alphabetical order. Prices as each vendor publishes them on its own site, excluding VAT, read on 22 October 2026. Worklayer is our own product.

HR software for UK small businesses: price, UK payroll, advice and how to start
ToolPrice in £UK payrollHR or legal adviceFree plan or trial
BambooHRNot in pounds: a flat $250 to $650 a month up to 25 employeesNo, connects to Xero PayrollNo7-day free trial
Breathe£24 a month per business up to 10 people, £44 up to 20; add-ons from £11No, connects to Xero PayrollNo14-day free trial
BrightHRFrom about £83 a month; £107 for 10 employees, £203 with the advice lineYes, a separate product24/7 advice line, Enhanced packageDemo, free Rota Lite tool
CharlieHR£21 a month per business up to 4 people, £47 up to 14No, connects to Xero Payroll and othersHR advisors in Charlie Grow, from £200 a month7-day free trial
HiBobOn requestYes, a paid add-onNoDemo and quote
PersonioOn request, plus a one-time setup feeNo, prepares payroll for Xero, Sage 50 or your accountantNoDemo and quote
Worklayer£9 per employee a month, billed annually, every module includedNo, exports a payroll snapshot for your providerNoFree for up to 3 employees

What a team of 10 pays a month, at list prices: Breathe £24 (or £245 a year), CharlieHR £47, Worklayer £90 billed annually, BrightHR £107 for the software on a fixed term, BambooHR $250. HiBob and Personio quote after a demo.

The tools in detail

BambooHR

An HR platform for small and mid-sized businesses from Draper, Utah, founded in 2008 and used by more than 30,000 companies. Its Core, Pro and Elite plans cover HR data, time off and hiring. Payroll and benefits are for US employees only.

Suits
Companies with staff in the US and the UK that want one system for both, with recruiting in every plan.
Price
Published in US dollars only. Companies with 25 employees or fewer pay a flat $250 a month for Core, $425 for Pro or $650 for Elite. Time tracking, payroll and benefits are add-ons without a published price.
AI
Ask BambooHR answers questions, and how much it covers depends on the plan. Bamboo AI, in open beta, prepares work, and payroll runs, schedule changes and employee outreach need review before they're applied or sent.
Strengths
Recruiting in every plan, more than 150 integrations, month-to-month terms and a seven-day free trial.
Limits
No prices in pounds, and the flat fee makes it expensive for a team of 5 or 10. Its own payroll is US-only; for the UK it connects to Xero Payroll.

Breathe

HR software for UK small and medium-sized businesses from Horsham, used by more than 17,000 SMEs by its own count. It charges per business, by size band, rather than per employee.

Suits
UK teams of up to about 50 that want holiday, absence, documents and performance reviews for a low fixed fee.
Price
£24 a month per business for 1 to 10 people, £44 for 11 to 20, £99 for 21 to 50, or about 15% less paid yearly (£245 a year for up to 10). Rota, time and attendance costs from £11 a month, expenses from £14, recruitment from £16, and a bundle of four add-ons £38 at the smallest size.
AI
Breathe AI Assistant, in beta, answers employees' policy questions from your company documents, with sources. Breathe says it doesn't make decisions, give legal advice, book leave or approve requests.
Strengths
One of the lowest fixed prices for a small team, core HR with performance management included, a 14-day trial of every feature and add-on with no credit card, and cancellation at any time.
Limits
No payroll of its own: it connects to Xero Payroll and exports payroll-ready data. No HR or employment-law advice line. Rotas and time tracking cost extra.

BrightHR

HR, health and safety and payroll software for UK businesses, used by more than 100,000 businesses by its own count. It is the one tool here that sells software and a 24/7 employment-law advice line together.

Suits
Small employers with shift workers who want rotas, clocking in and an advice line they can call about a dismissal or a grievance.
Price
Priced per employee by headcount, on fixed terms of 24, 36 or 60 months (36 months when you buy online). Its calculator comes to £107 a month for 10 employees for the software, and £203 with the 24/7 advice line and document templates, and never goes below about £83 a month. Payroll is priced separately.
AI
BRAINBOX+, an advice chatbot that matches your question to answers written by HR experts, plus AI drafting of job descriptions and performance goals and AI summaries of HR documents.
Strengths
Shift rotas, clocking in, absence, overtime and expense tracking in the core package. A 24/7 HR and employment-law advice line, optional insurance against employee claims, and its own UK payroll software or a managed payroll service.
Limits
Contracts of two years or more, a minimum of about £83 a month, and no free trial of the full software: you start with a demo. Payroll is a separate product with no published price.

CharlieHR

HR software for UK small businesses from London, priced per business by team size. Charlie Grow adds unlimited access to CIPD-qualified HR advisors.

Suits
Startups and small offices that want onboarding, time off and performance reviews on a monthly plan, with the option of an HR advisor later.
Price
£21 a month per business for 1 to 4 people, £47 for 5 to 14, £108 for 15 to 29, billed monthly with 30 days' notice. Charlie Grow, with HR advisors, starts at £200 a month for under 5 people, Core included. Charlie Recruit, its applicant tracking, starts at £55 a month.
AI
AskCharlie, an AI agent for quick HR questions, comes with Charlie Grow and is marked as coming soon.
Strengths
Low monthly prices with no long contract, onboarding, performance reviews, engagement surveys and perks in every plan, and a 7-day free trial with no credit card. Grow advisors write contracts and handbooks and help with grievances and dismissals.
Limits
No payroll of its own: it connects to Xero Payroll and PayCaptain. No built-in rotas. The advisors aren't employment lawyers; specialist legal advice comes from a partner law firm for an extra fee.

HiBob

An HR platform founded in 2015 and used by more than 5,500 companies, with offices in London, New York and other cities. Bob Core covers the HR basics, and payroll, hiring, performance, compensation and time and attendance are add-ons.

Suits
Growing UK companies that want UK payroll, performance and compensation planning in the same platform as HR.
Price
On request. HiBob builds a proposal from your headcount, the add-ons you choose and any implementation or support services you need.
AI
Bob AI needs a person to approve every action that affects company data. HiBob's fair use policy allows monthly limits on AI requests and extra fees for heavy use.
Strengths
UK and US payroll inside the platform, plus hiring, performance, learning and compensation planning, each as an add-on.
Limits
No published prices and no self-serve trial: you start with a demo. Time and attendance costs extra, there's no expenses module and no employment-law advice.

Personio

An HR platform from Munich, founded in 2015 and used by more than 16,000 companies, with an office in London. It sells two plans, Core and Core Pro, for companies of 10 to 10,000 employees.

Suits
UK companies of 10 people or more, often with staff in Germany or elsewhere in Europe, that want recruiting, performance and core HR in one system.
Price
On request. The price depends on headcount and the apps you add, and you get a quote after a web demo. Plans are annual with a 12-month minimum term, plus a one-time setup fee that depends on company size.
AI
Personio Assistant answers HR questions and analyses your people data. Some features, such as the Talent Screening Agent in Recruiting, run on AI credits.
Strengths
Recruiting, performance, surveys and compensation as apps on one platform, more than 200 integrations, and German payroll for teams that also employ people there.
Limits
No published prices, a setup fee and a 12-month minimum. It runs payroll itself only in Germany; for the UK it prepares payroll for Xero, Sage 50 or your accountant. Payroll, recruiting and performance are paid apps.

Worklayer

Worklayer is our own product: an HR platform run by AI agents. Agents handle onboarding, leave, expenses and payroll preparation on a schedule or when something happens, within the permissions an admin grants. It doesn't run UK payroll, has no rota or shift planning, no recruiting, no performance reviews and no HR or employment-law advice line.

Suits
UK small businesses that want AI agents to take on HR admin, one published price in pounds and no sales call. Free for up to 3 employees.
Price
£9 per employee per month, billed annually, excluding VAT, with every module, every integration and unlimited AI usage (no credits and no caps, subject to fair use). Free for up to 3 employees, including the admin, with no credit card and no time limit. No setup fee.
AI
Admins build agents that run on a schedule or when something happens, such as a new hire or a leave request. Each agent starts with no permissions; a step that needs one it doesn't have stops and asks an admin, and every run is recorded. Every employee also gets an AI assistant to ask HR questions.
Strengths
Employee records and org chart, time tracking, leave with balances and a team calendar, expenses with receipts and mileage, documents from templates, analytics and preliminary payroll in one price. Statutory holiday is set up in leave policies, so balances follow your entitlement rules. Sign up and import your team the same day.

Choose by need

Which HR tool fits which need for a UK small business
If you needLook at
The lowest fixed price for up to 10 peopleBreathe, CharlieHR
A free plan, not a trialWorklayer (up to 3 employees)
A 24/7 employment-law advice lineBrightHR
A dedicated HR advisor who knows your businessCharlieHR (Charlie Grow)
UK payroll from the same vendorBrightHR, HiBob
Payroll through XeroBreathe, CharlieHR, BambooHR, Personio
Shift rotas and clocking inBrightHR, Breathe (add-on)
Recruiting and performance in one systemPersonio, HiBob, BambooHR
AI agents that do HR work on their ownWorklayer
Staff in the UK and the USBambooHR, HiBob
Starting without a sales callBreathe, CharlieHR, BambooHR, Worklayer

Questions about HR software for UK small businesses

Worklayer is free for companies of up to 3 employees, including the admin, with every module, no credit card and no time limit. It isn't a trial.

The other tools here offer trials instead: Breathe for 14 days, CharlieHR and BambooHR for 7 days. BrightHR offers a free Rota Lite tool and a demo of the full software. Free HR software

No law requires it. The law requires the paperwork: a written statement of employment particulars for every employee by their first day, right-to-work checks before they start, and statutory holiday and sick pay paid correctly.

With 2 or 3 people, a spreadsheet and a shared folder can do that. HR software starts to pay off when holiday requests, sickness, contracts and starters overlap, often at around 5 to 10 people, or as soon as you want a record you can show a tribunal.

Of the tools on this page, BrightHR (its own payroll software, or a managed payroll service) and HiBob (a paid add-on) run UK payroll themselves. Breathe, CharlieHR and BambooHR connect to Xero Payroll, and Personio prepares payroll for Xero, Sage 50 or your accountant.

Worklayer doesn't run UK payroll. It prepares a monthly payroll snapshot, reviewed and approved in Worklayer, and exports it for your payroll provider or accountant.

BrightHR's Enhanced package includes a 24/7 HR and employment-law advice line, document templates and optional insurance against employee claims. CharlieHR's Charlie Grow, from £200 a month, gives unlimited access to CIPD-qualified HR advisors on weekdays; they aren't employment lawyers, and specialist legal advice costs extra.

BambooHR, Breathe, HiBob, Personio and Worklayer don't include an advice line.

For a team of 10, at list prices excluding VAT: Breathe £24 a month, CharlieHR £47, Worklayer £90 billed annually, BrightHR £107 for the software on a fixed term (£203 with the advice line), and BambooHR $250, priced in dollars. HiBob and Personio quote after a demo, and Personio adds a setup fee.

Compare the price with every module you'll use: rotas, recruiting, payroll and advice are extras at most vendors. Worklayer pricing

Breathe can be cancelled at any time, CharlieHR on 30 days' notice, and BambooHR offers month-to-month terms. Personio has a 12-month minimum, and BrightHR's fixed terms run 24, 36 or 60 months. Worklayer is billed annually.

Yes. You set holiday entitlement in leave policies, such as 28 days for a full-time employee on a five-day week, and balances, requests and the team calendar follow it. Worklayer doesn't run UK payroll, so holiday pay is calculated by your payroll provider or accountant. UK holiday entitlement calculator

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