Payroll Software in UK (United Kingdom) | Payroll System

Written by Global Payroll Team

Last updated April 27, 2026

Expert Reviewed

Payroll Software in the UK

With the ever-evolving landscape of employment regulations and the increasing complexity of compensation structures, companies need a reliable and efficient payroll solution. Mercans has emerged as a strong provider in the UK payroll software market, offering innovative payroll software in the UK that simplifies and streamlines the payroll process. Recognized for its user-friendly interface, robust features, and strong customer support, Mercans helps businesses manage payroll operations and support compliance in a rapidly changing regulatory environment.

Trusted the world over

Compliant with HMRC

HM Revenue & Customs (United Kingdom)

Mercans Payroll Software is designed to support compliance with UK statutory payroll requirements administered by HM Revenue & Customs (HMRC). Our payroll software supports real-time payroll reporting workflows, helping businesses manage PAYE, National Insurance, statutory pay calculations, payroll records, and tax code updates more efficiently. Mercans’ HR Blizz™ is listed by HMRC as paid-for payroll software recognised for reporting PAYE online, reinforcing its suitability for UK payroll operations. With comprehensive reporting tools and an intuitive interface, Mercans helps organisations manage payroll processes efficiently while reducing the risk of errors and supporting reliable payroll administration.

Why Choose Mercans

Native SaaS and payroll platform
Trusted by fortune global 500 and multinationals
Manage all employment types – employees, freelancers, contractors, expats
More than 100 inbound and outbound integrations are available today
Suitable for enterprise businesses
GDPR certified, SOC 1 & SOC 2 compliant
Supports multiple currencies
ISO 20000 & ISO 27001 Certified
Global presence and multi-country payroll capabilities
OWASP ASVS 3.0 compliant

Payroll Software Modules

Mercans Payroll Software provides managers and employees in the UK with a powerful and user-friendly online portal designed to optimize and enhance HR and payroll functions. Our advanced software modules feature state-of-the-art functionality to ensure efficiency, compliance, and an exceptional user experience. Discover the key features below:

Manager Self Service

Empowers managers to efficiently manage HR tasks such as approvals, performance tracking, and employee oversight directly from the platform.

Employee Self Service

Grants employees direct access to their personal information, payroll details, and various HR resources, promoting transparency and convenience.

Employee Help Desk

Offers a centralized support system for employees to address payroll and HR-related inquiries, ensuring swift resolutions and heightened satisfaction.

Data Exchange

Enables seamless integration with other systems and platforms through robust data exchange capabilities, streamlining data management and minimizing errors.

eDrive and Workflows

Automates and optimizes HR processes with configurable workflows and document management, enhancing efficiency and compliance.

Time & Attendance

Accurately tracks employee work hours, attendance, and productivity while integrating seamlessly with payroll calculations.

Leave Management

Effectively manages various types of employee leave, including annual leave and sick leave, with automated approval workflows and precise tracking.

Loans & Expenses

Streamlines the management of employee loans and expense claims, ensuring accurate processing and smooth integration with payroll for comprehensive financial management.

Payroll Features UK

Automated Payroll

Mercans UK Payroll Software enables you to automate payroll and payslip submissions for employees and directors with static wages. This feature simplifies payroll processing, ensuring timely and accurate payment while reducing administrative workload.

CIS E-Filing

Efficiently file your CIS300 data with HMRC and obtain CIS verifications directly through our platform. After submission, the Mercans server systematically stores payroll data and returns for up to three years, allowing you to view, print, or download them anytime. The system also alerts you if any follow-up actions are required, supporting compliance with UK payroll and CIS administration requirements.

RTI Compliant

Our software supports RTI reporting, allowing you to sign up for an account online and get your payroll up and running quickly. We prioritize data security and are ISO 27001 accredited, providing user-friendly, comprehensive, and cost-effective RTI eReturns to HMRC. The system supports the core RTI submission workflows used for payroll reporting to HMRC, including FPS and EPS, using supported electronic submission channels.

RTI E-Filing

Processing RTI e-returns such as FPS, EPS, and starter or payroll-related notifications is quick and straightforward, allowing you to compile and e-file the relevant forms in just a few clicks

P11D, P11D(b), and P46(Car) E-Filing

E-file your P11D and P11D(b) forms easily through Mercans Payroll Software. Our system supports the preparation and conversion of benefit and expenses data into the required format for e-filing. Where relevant, it can also support P46(Car) related workflows, noting that employers who payroll company car benefits generally do not need to submit a P46(Car) for those benefits.

Pension Scheme E-Filing

Mercans offers pension-related payroll support that helps employers manage workplace pension data and payroll outputs in line with UK pension administration requirements. This supports payroll operations connected to automatic enrolment and ongoing pension contribution handling.

HMRC eReturn Errors Rectification

Our payroll system can help you rectify payroll reporting and payment data issues by updating payroll records and supporting corrected submissions where appropriate, helping your data remain accurate and compliant.

Rollback Facilities

If an error occurs while entering pay data, our rollback feature allows you to reverse or delete the incorrect entries and re-process the payroll accurately.

Making Tax Digital (MTD) VAT E-Filing

Mercans simplifies the submission of eReturns to HMRC using simple CSV or XML files. Whether sending VAT returns or other compatible eReturns under MTD, our server supports structured submission workflows.

Agent Authorisation Services

Our enhanced Agent service streamlines the process of requesting client authorisation or re-authorisation, allowing agents to act on behalf of clients for specific tax services efficiently. Agents can manage client authorisations for various services, including VAT, PAYE, and Corporation Tax.

With Mercans UK Payroll Software, businesses can confidently navigate payroll and HR processes, supporting compliance and efficiency in every aspect of payroll management.

MTD – Interest Restriction Return (IRR) eReturns to HMRC

Mercans allows convenient submission of either a full or abbreviated Corporation Tax – MTD Interest Restriction Return (IRR) to HMRC. You can appoint or revoke a reporting company or submit abbreviated or full returns with ease.

Charities Online

Effortlessly e-file and manage your Gift Aid repayments to HMRC through Mercans. We offer options for both single and multiple charity claim submissions.

iXBRL A/C Test In Live (TIL)

Ensure accurate iXBRL accounts tagging with our upload feature. After tagging, our system checks for syntax errors and notifies you instantly. Your files can then be submitted through relevant HMRC testing or filing workflows where applicable.

CT and iXBRL Accounts to HMRC

Mercans provides data conversion capabilities to convert your CT600 and its supplements into XML format, combining them with your Computation and Accounts in iXBRL format for e-filing to HMRC.

E-Filing of iXBRL Accounts to Companies House

E-filing your iXBRL Accounts to Companies House is straightforward with Mercans. The system handles the filing protocols and delivery requirements, supporting a smooth submission process.

Auto-Tax Code and Notice Updates

Our software automatically updates P6 and P9 tax codes, as well as other notices, helping you remain compliant without manual intervention.

Auto Enrollment

Mercans offers an integrated auto enrolment support solution, managing payroll and workplace pension assessment workflows together. The software helps assess employee eligibility and consolidate communication letters and contribution data during the pay run process.

RTI, EOY E-Filing

Mercans facilitates e-filing for RTI payroll returns, including FPS and EPS, ensuring accuracy and compliance for payroll data submissions and year-end payroll record handling.

Social Security Auto Calculations

Our system automatically calculates SSP, SMP, SAP, and SPP in line with current UK payroll rules for statutory payments.

GDPR Compliance

Mercans supports data protection with features like secure email monitoring, data masking, and automatic document encryption and controlled document handling after processing.

With Mercans UK Payroll Software, businesses can confidently navigate payroll and HR processes, supporting compliance and efficiency in every aspect of payroll management.

Batch Processing for Pay Bureaus

Our payroll package supports batch RTI e-filing and payroll reporting workflows, allowing for efficient management of payroll for large organizations and pay bureaus.

Data Exports for Backup and Reports

The system efficiently manages payroll data for up to three years, with the capability to export key data in CSV format for backup and reporting purposes.

Compatible with Accounting Packages

Nominal Accounting Data export can be easily integrated into popular accounting software for seamless data transfer.

Leaver/Joiner Process

We provide complete processing for leavers, including final payslips and statements, as well as calculations for joiners at any time.

Rollback, Delist, and Restore Employee

Easily roll back pay data to any previous period, delist duplicate or mistaken employees, and restore ex-employee personal data as needed.

BACS (Bankers’ Automated Clearing Services)

Mercans supports multiple bank accounts for employees and can support BACS-compatible payment workflows, facilitating efficient payment processing.

Auto Consolidation of P32 (EPR) Returns

The system automatically consolidates the amounts payable to HMRC each month or quarter, dynamically updating your P32 data as needed.

With Mercans UK Payroll Software, businesses can confidently navigate payroll and HR processes, supporting compliance and efficiency in every aspect of payroll management.

Multi-Company Processing

Mercans Payroll Software offers a powerful interface for managing multiple entities, allowing users to work with data as if it were from a single company while intelligently processing individual companies in the background.

Bulk Payroll Processing Engine

Process high payroll volumes efficiently, with the ability to handle payroll for multiple companies in a single click.

Payroll Grouping

Restrict access to confidential payroll data by creating payroll groups and assigning users accordingly.

Complete Range of Pay Frequencies and Director’s Pay

Our software supports various pay frequencies, including weekly, monthly, and quarterly, as well as specific calculations for directors’ pay and unpaid leave scenarios.

Holiday Pay Calculations

Accrue holiday hours and days with an alert system to notify if holiday payments exceed accruals.

Compliance and Reporting

With Mercans UK Payroll Software, businesses can confidently navigate payroll and HR processes, supporting compliance and efficiency in every aspect of payroll management.

MTD – Interest Restriction Return (IRR) eReturns to HMRC

Charities Online

Effortlessly e-file and manage your Gift Aid repayments to HMRC through Mercans. We offer options for both single and multiple charity claim submissions.

iXBRL A/C Test In Live (TIL)

CT and iXBRL Accounts to HMRC

Mercans provides data conversion capabilities to convert your CT600 and its supplements into XML format, combining them with your Computation and Accounts in iXBRL format for e-filing to HMRC.

E-Filing of iXBRL Accounts to Companies House

E-filing your iXBRL Accounts to Companies House is straightforward with Mercans. The system handles the filing protocols and delivery requirements, supporting a smooth submission process.

Auto-Tax Code and Notice Updates

Our software automatically updates P6 and P9 tax codes, as well as other notices, helping you remain compliant without manual intervention.

Auto Enrollment

RTI, EOY E-Filing

Mercans facilitates e-filing for RTI payroll returns, including FPS and EPS, ensuring accuracy and compliance for payroll data submissions and year-end payroll record handling.

Social Security Auto Calculations

Our system automatically calculates SSP, SMP, SAP, and SPP in line with current UK payroll rules for statutory payments.

GDPR Compliance

Mercans supports data protection with features like secure email monitoring, data masking, and automatic document encryption and controlled document handling after processing.

Payroll Processing

With Mercans UK Payroll Software, businesses can confidently navigate payroll and HR processes, supporting compliance and efficiency in every aspect of payroll management.

Batch Processing for Pay Bureaus

Our payroll package supports batch RTI e-filing and payroll reporting workflows, allowing for efficient management of payroll for large organizations and pay bureaus.

Data Exports for Backup and Reports

The system efficiently manages payroll data for up to three years, with the capability to export key data in CSV format for backup and reporting purposes.

Compatible with Accounting Packages

Nominal Accounting Data export can be easily integrated into popular accounting software for seamless data transfer.

Leaver/Joiner Process

We provide complete processing for leavers, including final payslips and statements, as well as calculations for joiners at any time.

Rollback, Delist, and Restore Employee

Easily roll back pay data to any previous period, delist duplicate or mistaken employees, and restore ex-employee personal data as needed.

BACS (Bankers’ Automated Clearing Services)

Mercans supports multiple bank accounts for employees and can support BACS-compatible payment workflows, facilitating efficient payment processing.

Auto Consolidation of P32 (EPR) Returns

The system automatically consolidates the amounts payable to HMRC each month or quarter, dynamically updating your P32 data as needed.

Payroll Management

With Mercans UK Payroll Software, businesses can confidently navigate payroll and HR processes, supporting compliance and efficiency in every aspect of payroll management.

Multi-Company Processing

Bulk Payroll Processing Engine

Process high payroll volumes efficiently, with the ability to handle payroll for multiple companies in a single click.

Payroll Grouping

Restrict access to confidential payroll data by creating payroll groups and assigning users accordingly.

Complete Range of Pay Frequencies and Director’s Pay

Our software supports various pay frequencies, including weekly, monthly, and quarterly, as well as specific calculations for directors’ pay and unpaid leave scenarios.

Holiday Pay Calculations

Accrue holiday hours and days with an alert system to notify if holiday payments exceed accruals.

Payroll Implementation

Mercans’ standard payroll implementation process for the UK is designed to facilitate a seamless transition to our payroll system, ensuring that each client’s specific needs are met. The process is tailored based on factors such as complexity, data availability, and the number of parallel runs required. Below is an overview of the key steps involved in our implementation process:

Implementation Planning

We begin by assigning dedicated resources and defining roles for the project team. A kick-off meeting is held to outline objectives, confirm the project scope, and establish a detailed implementation calendar. A welcome package, which includes project details and contact information, is provided to all stakeholders. To keep the project on track, we schedule weekly update calls or emails to monitor progress and obtain sign-off on the project scope.

Requirements Gathering

Next, we conduct workshops to fully understand the client’s needs and document them thoroughly. This includes completing a business blueprint that details requirements and performing a gap analysis to identify any discrepancies. We also define and document any necessary customizations, ensuring that all requirements meet client expectations. A comprehensive list of payroll-specific requirements is established and signed off by the client.

System Configuration

In this step, we configure the payroll system according to UK regulations and client specifications. This includes customizing the wage type catalog to include relevant pay components, setting up data dictionaries, and creating necessary interfaces for data integration. We also adapt reports to comply with UK regulatory standards and set up Employee Self-Service (ESS) and Manager Self-Service (MSS) functionalities.

Data Migration

We proceed to migrate employee and payroll master data, ensuring its accuracy and integrity. The migrated data is thoroughly reviewed, and sign-off is obtained to confirm its correctness before moving on to subsequent steps.

Test Payroll Run

To validate system configurations, we conduct simulation payroll runs and perform parallel runs with existing systems. Test run sign-offs are completed to ensure accuracy, and we conduct end-to-end testing. User Acceptance Testing (UAT) is carried out, and any issues identified are promptly addressed.

Payroll Management Transition & Sign-off

Finally, we develop a comprehensive transition plan for moving to live payroll operations, including training for users. A hypercare plan is implemented for post-go-live support, along with an escalation plan for critical issues that may arise. We also create a fallback plan for potential disruptions and complete a go-live checklist to ensure everything is in place for final sign-off.

Payroll Integration

Mercans UK is distinguished by its extensive reach and robust integration capabilities, operating seamlessly across 160 countries. Our support for HMRC-related payroll reporting workflows and integrations with major HCM and workforce management platforms helps businesses manage complex payroll landscapes with greater efficiency.

Recognized Trust Sources

HMRC

Mercans’ Payroll Software supports UK payroll processes that align with HMRC reporting requirements. This supports payroll workflows such as PAYE reporting, statutory calculations, and payroll data handling in line with UK requirements. These certifications affirm Mercans’ dedication to high compliance standards and operational excellence globally.

Integration with HCM/ HRMS/ Workforce management platforms

This integration creates a unified experience between HR administration and payroll processing. Through our Employee Self Service (ESS) feature, employees can easily manage payroll tasks, including submitting worked hours or other declarations. Once approved, these entries are instantly processed within the payroll system, reducing errors and significantly enhancing productivity for both employees and HR administrators.

Custom Integrations

Mercans also offers tailored API integrations for various industries, ensuring that our payroll software meets specific business needs. Our custom integrations include:

Custom API Integrations

Designed for diverse sectors such as hospitality, transport, sports, construction, and healthcare.

Xero Integration

Connects seamlessly with other applications, reducing manual data entry and minimizing errors. Recent enhancements have added new integrations to boost connectivity and efficiency.

UK Payroll Reports

Mercans’ payroll software in the UK is designed to produce a diverse array of reports, ensuring compliance with both standard and regulatory requirements. These reports offer transparency, accuracy, and seamless integration with financial and regulatory systems.

Report Name	Description
BACS Net Payment List	Generates a report of employee net salary payments for BACS or bank transfer processing, including employee identifiers, bank details, account information and payment amounts.
Net Payment Summary	Summarises net pay amounts by employee, payment method, bank account and pay date for payroll review and reconciliation.
Payslip / Print Payslip	Generates employee payslips showing gross pay, taxable pay, PAYE tax, National Insurance, pension contributions, student or postgraduate loan deductions, statutory payments, other deductions and net pay.
Gross to Net Report	Reconciles each employee’s payroll calculation from gross pay to net pay, including taxable pay, PAYE, National Insurance, pension and other deductions.
Element Summary Report	Summarises earnings, deductions, benefits, statutory payments, employer costs and other payroll elements for the selected payroll period.
Payroll Reconciliation Report	Reconciles payroll totals with HMRC liabilities, pension contributions, bank payments, accounting journals and prior-period payroll results.
High / Low Earners Report	Identifies employees above or below selected earnings thresholds, including unusual pay, refunds, negative pay or other payroll exceptions.
Validation Exception Report	Lists payroll validation errors or warnings, such as missing employee data, invalid National Insurance numbers, tax code issues, starter/leaver data gaps and payment exceptions.
Starter and Leaver Validation Report	Checks new starter and leaver records before payroll submission, including start dates, leaving dates, tax codes, National Insurance numbers and P45 data.
Full Payment Submission Reconciliation Report	Compares payroll results with values submitted to HMRC through the FPS. The FPS reports pay, PAYE tax, National Insurance, student/postgraduate loan deductions and other employee-level RTI data.
Employer Payment Summary Reconciliation Report	Reconciles EPS adjustments such as statutory payment recovery, Employment Allowance, Apprenticeship Levy, CIS deductions suffered, no-payment periods and final submissions.
FPS – Full Payment Submission	Statutory RTI submission sent to HMRC on or before each employee payment date. It reports employee pay and deductions each time employees are paid.
EPS – Employer Payment Summary	Statutory RTI submission used where adjustments are needed or no employees were paid in a tax month. It can report statutory payment recovery, Employment Allowance, Apprenticeship Levy, CIS deductions suffered and final-period indicators.
P45	Issued to employees when they leave employment, showing leaving date, pay and tax information for the tax year to date.
P60	Issued to employees after the end of the tax year, showing annual pay and tax details for employees still employed on 5 April.
P11D / P11D(b)	Used for taxable benefits and expenses reporting where benefits are not fully payrolled. P11D(b) reports Class 1A National Insurance due on benefits.
P11 / Employee Deductions Working Sheet	Payroll record supporting PAYE and National Insurance calculations for each employee. Modern payroll systems usually maintain this electronically rather than as separate “P11 Part 1, 2 and 3” reports.
Employer Payment Record / P32	Internal employer payment record showing PAYE, National Insurance, student loan deductions, statutory payment recoveries, Employment Allowance and amounts due to HMRC.
Pension Contribution Report	Reports employee and employer pension contributions for pension provider submission and auto-enrolment reconciliation.
Accounting / GL Payroll File	Provides payroll accounting entries for finance integration, including salary costs, employer National Insurance, pension costs, deductions, liabilities and accruals.

Benefits of Payroll Software

Mercans offers a robust payroll solution designed to optimize payroll administration and HR processes for organizations across the UK. Here’s how our cutting-edge software can benefit your business:

Core Key Features
Additional Key Features

No External Dependency

Manage payroll directly through our platform, eliminating the need for third-party processors and enhancing control.

Integrated HR and Leave Management

Seamlessly handle payroll, HR tasks, and employee leave requests in one unified system, reducing administrative complexity.

Reduced Manual Work

Automate routine tasks to minimize errors and ensure accurate payroll processing, freeing up time for more strategic activities.

Customization

Tailor over 150 workflows to your specific business needs, boosting efficiency and productivity.

Time Savings

Leverage automation to save time, allowing your team to focus on high-impact initiatives.

Seamless Integrations

Effortlessly connect with leading HR platforms like SAP SuccessFactors, Workday, and Oracle for a smooth, unified workflow.

Centralized Data Management

Consolidate employee data in a single platform for easy access, updates, and analysis.

24/7 Employee Access

Empower your workforce with around-the-clock access to their personal information.

Mercans’ payroll software is a comprehensive, secure, and user-friendly solution, designed to streamline your payroll processes so you can focus on what matters most, your people.

Transparent Pricing

Benefit from a clear, fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Access expert assistance and advice to maximize the benefits of our software.

Secure Data Management

Protect your data with secure online processing and self-managed backups.

Compliance Assurance

Stay compliant with the latest UK fiscal and employment regulations through continuous updates.

Mercans’ payroll software is a comprehensive, secure, and user-friendly solution, designed to streamline your payroll processes so you can focus on what matters most, your people.

Core Key Features

No External Dependency

Manage payroll directly through our platform, eliminating the need for third-party processors and enhancing control.

Integrated HR and Leave Management

Seamlessly handle payroll, HR tasks, and employee leave requests in one unified system, reducing administrative complexity.

Reduced Manual Work

Automate routine tasks to minimize errors and ensure accurate payroll processing, freeing up time for more strategic activities.

Customization

Tailor over 150 workflows to your specific business needs, boosting efficiency and productivity.

Time Savings

Leverage automation to save time, allowing your team to focus on high-impact initiatives.

Seamless Integrations

Effortlessly connect with leading HR platforms like SAP SuccessFactors, Workday, and Oracle for a smooth, unified workflow.

Centralized Data Management

Consolidate employee data in a single platform for easy access, updates, and analysis.

24/7 Employee Access

Empower your workforce with around-the-clock access to their personal information.

Additional Key Features

Transparent Pricing

Benefit from a clear, fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Access expert assistance and advice to maximize the benefits of our software.

Secure Data Management

Protect your data with secure online processing and self-managed backups.

Compliance Assurance

Stay compliant with the latest UK fiscal and employment regulations through continuous updates.

This content was prepared for informational purposes only. As local laws & regulations keep on changing, please consult your tax & legal advisors.

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FAQs

Is the payroll software HMRC-recognized and does it support RTI Real Time Information submissions?

Mercans payroll software is fully HMRC-recognised and supports RTI Real Time Information submissions to ensure full compliance with UK payroll regulations, streamlining reporting and reducing administrative burden.

Can the platform handle workplace pension auto-enrolment and statutory payments such as sick pay and maternity or paternity pay?

Mercans manages workplace pension auto-enrolment and statutory payments efficiently, including sick pay, maternity pay, paternity pay, and adoption pay, ensuring compliance with UK employment law and employee entitlements.

How does the software process taxable benefits and adapt to the upcoming changes in real-time payrolling for benefits-in-kind starting April 2026?

Mercans adapts seamlessly to regulatory changes, including the April 2026 implementation of real-time payrolling for benefits-in-kind, enabling accurate processing of taxable benefits while maintaining full compliance.

Does it integrate with accounting, HR, or time-tracking tools, and provide employee self-service such as digital payslips?

Mercans integrates with leading HR, accounting, and time-tracking systems, while offering secure employee self-service portals for accessing payslips, tax documents, and payroll data anytime.

What are the pricing plans, scalability limits employee headcount, and available support options for transitioning or onboarding?

Mercans offers flexible pricing plans tailored to your needs, scalable solutions to accommodate any workforce size, and dedicated support to ensure smooth onboarding and ongoing payroll management.