
Last updated: Sep 4, 2025

It’s Friday afternoon, and whilst everyone else is winding down, you’re still wrestling with payroll calculations that should have taken minutes, not hours. Sound familiar?
This National Payroll Week, we want to celebrate not just the professionals who keep the UK’s employees paid accurately and on time, but the dramatic shift happening in how payroll actually gets done. Because here’s the thing: 92% of our customers now run payroll faster using Xero*. That’s not just an improvement, that’s transformation.
Over the past 12 months, we’ve been on a mission to turn payroll from your biggest headache into your smallest worry. Here’s how we’re making that happen, and what’s coming next to save you even more time.
The days of losing entire afternoons to employee setup are over. Whether you’re switching from Sage, QuickBooks, BrightPay, or HMRC’s system, or onboarding a new team member, we’ve turned what used to be a heavily time-consuming task into a streamlined process that just works. You can now get started with or switch to Xero Payroll in 6 simple steps.
And with flexible working patterns now built in, you can accommodate the new world of work without the administrative burden. The result? You’re not just processing payroll faster, you’re doing it with complete confidence that everything’s been set up correctly from day one.
Here’s what keeps payroll professionals up at night: getting compliance wrong. We want to help reduce that anxiety by providing a tool that’s trustworthy and compliant, to give you peace of mind. Xero Payroll is HMRC-recognised and trusted by millions, and 95% of our customers agree Xero Payroll helps them stay compliant*.
From National Insurance categories, RTI submissions, pension auto-enrolment, leave calculations that actually align with your business year, we’ve automated the complex bits so you don’t need to stress about staying compliant. Every calculation is verified, and every compliance requirement is handled automatically.
Complete your pay run and file with HMRC in 3 simple steps. Because compliance shouldn’t require constant mental arithmetic or second-guessing.
A business managing one payroll system is tough enough, but for accountants and bookkeepers, the reality is managing multiple client payrolls.
Payroll Manager makes this easier. You don’t need to dip in and out of each Xero organisation to get the necessary information. Instead, you have a clear view of what’s happening with every pay run and every submission. This can save valuable time – in fact, 86% of accountants and bookkeepers agree having accounting and payroll in one place saves significant time.
With tools like these, you’re not just running payroll, you’re running it strategically, with the insights to make better decisions about your business or your clients’ businesses.
Payroll is no longer just about processing payslips. It’s about giving businesses confidence, empowering teams, and unlocking insights that drive smarter decisions. At Xero, we’re building towards an intelligent platform that helps you pay your people right, empower your teams, and advise with confidence from first hire to full workforce.
Here’s a glimpse of where we’re heading:
Payroll should feel effortless. It should be accurate, compliant, and automated. Soon, real-time National Minimum Wage alerts will help ensure compliance is never in doubt. Calculation transparency will help you understand the ‘how’ behind the numbers. Payroll Payments directly from Xero will connect pay runs and payments in one seamless flow.
With more and more automation being embedded in payroll and with the help of Just Ask Xero’s (JAX) AI-powered features, those manual repetitive tasks will be handled for you, freeing up time to focus on the bigger picture.
And for businesses with complex rosters, more advanced time and scheduling tools will help make shift and industry-specific demands easy to manage.
Welcoming new employees should be simple. With employee self-onboarding, team members will be able enter their own details directly into Xero Payroll, reducing errors and admin. It’s a smoother, more empowering experience for both employers and employees.
Payroll data should be more than numbers, it should power better decisions. That’s why we’re evolving reporting with smarter insights and proactive recommendations, helping you see issues before they arise, stay compliant with confidence, and plan ahead with clarity. The future of payroll is one where insights don’t just look back, they guide what you do next.
We’re on a journey to create a platform that goes beyond payroll combining compliance, payments, and people management to support growing businesses and the advisors who guide them.
We love hearing from you – if you have suggestions for how we can make Xero Payroll even better, head over to Xero Product Ideas and share your thoughts.
Key resources
*Survey conducted by Xero of 254 small businesses in the UK using Xero, May 2024
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