Payroll in the UK Is Outdated

Payroll in the UK is outdated. For too long, small businesses have relied on old processes and third-party payroll bureaus, creating inefficiencies and unnecessary admin.. We’ve experienced this pain firsthand whilst growing our startup from 4 to 400+ employees, and we knew there had to be a better way. Growing a people business taught us a lot in many different disciplines, but one area where we really saw an opportunity to improve things was people operations. By people ops, we mean hiring, onboarding, compensating, and managing the day-to-day tasks necessary to ensure our teams had their basic needs met so they could focus on what was important in their jobs. In the UK, a lot of companies use a payroll bureau to process payroll, they in turn use an array of payroll software providers. Alternatively, they run payroll in-house, which only makes sense once a company reaches a certain size, as historically this involved a payroll specialist running clunky desktop payroll software. 

Introducing a third party, such as a payroll bureau or other similar payroll services, creates an inevitable back-and-forth process. Usually, a single point of contact within the company communicates with the payroll bureau, meaning any changes—whether updates to personal details or a new bank account—must go through this individual. Payroll bureaus were essential when payroll was manually processed or required specialised skills to use payroll software. However, those days are long gone. Today, online payroll software can handle the entire process, and with HMRC’s ‘Making Tax Digital’ initiative, all communications with HMRC—such as submitting returns (FPS – Full Payment Submission) or updating an individual’s tax code—can be automated. Removing third parties from the update process not only reduces the risk of mistakes but also saves a significant amount of time.

Tackling Third-Party Bureaus and Outdated Payroll Processes

With these changes, we saw the opportunity to build the best payroll software in the UK, completely transforming how people operations are managed. At the same time, we observed the rise of cloud-based expense and HR software, which has led to a proliferation of cloud-based apps—many of which were not integrated with one another. Many experts predict the consolidation of cloud-based SaaS solutions, driven by both manageability and cost considerations. This makes sense: a solution is created to address a specific issue, companies adopt it, but over time, it becomes just one part of a larger challenge. Bringing these solutions together under a single people operations platform is a logical next step.
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From this, a vision emerged of what an outstanding payroll-to-HR platform should look like. It would be simple enough for a CEO or Founder with no payroll experience to use, while being powerful enough for an in-house accountant to manage payroll for a company of several hundred employees. It would reduce the administrative burden on managers (not having to deal with external payroll services) while significantly improving the employee experience. It would also introduce new opportunities, allowing companies—even smaller ones—to offer features to employees that were previously too complex or costly.

A Vision for the Best Payroll Solution in the UK

Here at Aigence, we’re committed to rethinking payroll processes from the ground up, particularly for those who may not have specialised payroll staff and don't want to use a bureau or payroll service. Our own journey growing a startup from a small business of 4 to 400 employees gave us firsthand insight into the friction caused by legacy systems. We believe there’s room for a more intuitive, unified, and HMRC-compliant approach to paying people in the modern workplace.

In building our vision of the best payroll software, we’ve been guided by three core principles: 

This approach resonates strongly with small to mid-sized companies that want a smoother, less error-prone system.

Empowering Small Businesses with Our Free Payroll Software

One thing we’ve learnt from speaking with other founders is that small businesses can’t afford to pour money into cumbersome tools. That’s why we’ve decided to offer our free payroll software option to new founders who have fewer than 10 employees, for up to two years. We understand how critical every bit of support is in those early stages and want to remove barriers to getting payroll right.

By providing free payroll for smaller teams, we’re ensuring that innovative start-ups don’t waste valuable resources on manual tasks or expensive middlemen. They can run everything in-house, staying in control of compliance and day-to-day processes without compromising on quality. In time, as they grow, they’ll have the flexibility to scale up and integrate more advanced features—without migrating away from a system they’ve come to trust.

Offering free payroll to young companies isn’t just a marketing tactic—it’s our genuine way of supporting emerging entrepreneurs who shouldn’t have to juggle outdated processes or pay for features they won’t yet use. By removing financial barriers to a solid payroll foundation, we hope to keep founders focused on growth and innovation.

Once these start-ups scale beyond 10 employees or surpass their first two years, they can easily transition to more advanced packages. This continuity is crucial for building a stable payroll history and avoiding the disruptions that come from switching platforms midway.

Key Goals for Aigence: A Next-Generation Payroll Solution

While we have a long-term vision, our immediate road map is guided by several key goals:

These goals reflect our broader mission: to shape a payroll environment that’s efficient, transparent, and adaptable. By continuously refining our approach, we hope to address the evolving needs of growing businesses in the UK—and beyond.

Reinventing Payroll Processes for Efficiency

Efficient payroll processes can save significant time and reduce errors. With the old approach—heavy reliance on data sent in emails, data re-entry, or outsourced bureaus—businesses often waste days chasing small details. By contrast, well-designed payroll software centralises all relevant data, making it easier to update information and generate accurate payslips in real-time.

At Aigence, we see enormous potential in automating repetitive tasks and integrating them with other business operations. For instance, staff can update their own personal details, while managers and finance teams can approve changes in real time. They can manage details around pension auto-enrolment. This not only streamlines payroll processes but also boosts collaboration across the company.

Ensuring HMRC Compliance Through Automation

Compliance with HMRC regulations is a top priority for UK businesses, large or small. Missing filings or making calculation mistakes can lead to penalties and added stress. By automating routine tasks—such as submitting returns like FPS or adjusting tax codes—Aigence helps companies stay on top of these requirements without tying up in-house resources.

We designed our system with HMRC in mind, adhering to ‘Making Tax Digital’ guidelines to ensure real-time reporting and consistent data accuracy. This approach keeps your payroll data fully aligned with government expectations, dramatically reducing the risk of fines or audits down the line.

Embracing Cloud Payroll for Modern Business Growth

The rise of cloud payroll solutions reflects a wider trend: businesses now expect to access vital tools and data from anywhere, at any time. Storing payroll information in the cloud ensures real-time availability, faster updates, and enhanced security. For a modern business, this flexibility is no longer a luxury—it’s a necessity.

By opting for a cloud payroll platform, companies also reduce their reliance on local servers and IT teams. Updates happen automatically, data backups are routine, and advanced security measures protect sensitive records. This means that even a lean start-up can maintain enterprise-level payroll resilience from day one.

Putting Employees at the Heart of Payroll

While the word “payroll” can sound purely administrative, it’s a key aspect of employee satisfaction. When employees can view payslips ahead of time, track changes to tax codes, or adjust workplace pension contributions on their own, they feel more engaged and in control of their finances.
We believe that giving employees the tools for self-service—like uploading new bank details or requesting leave—minimises back-and-forth emails and fosters a culture of trust. It allows HR teams and managers to focus on strategic tasks rather than micro-managing every data update. Ultimately, a people-focused payroll system leads to a more motivated and informed workforce.

Inspired by QuickBooks: Lessons for a Better Payroll Experience

The popularity of QuickBooks among SMEs shows that businesses value simplicity and integration. Many companies handle day-to-day accounting in QuickBooks but still rely on separate tools for payroll. We’ve taken cues from that user-friendly ethos, ensuring that switching to Aigence for payroll doesn’t mean sacrificing ease of use.
While QuickBooks offers a strong financial suite, we recognise that some founders and HR teams need a more dedicated payroll environment—especially one aligned with advanced features like real-time payslip forecasting and automated compliance checks. That’s where Aigence can complement, integrate with accounting software or even replace existing tools.

Insights from Xero, BrightPay, and Sage: Building a Well-Rounded System

We also draw lessons from other established players like Xero, BrightPay, and Sage, each of which offers its own twist on payroll and accounting. Xero is renowned for seamless financial reporting, BrightPay often highlights user-friendly compliance features, and Sage brings decades of credibility in business software. However, many of these solutions cater to users who already possess accounting expertise or rely on trained payroll staff. Our aim at Aigence is to bring those robust capabilities into a more accessible environment—so founders, HR professionals, and line managers can handle their payroll needs directly, even without specialised backgrounds.

Maximising Employee Benefits and Streamlining Access

Beyond ensuring timely wages, a modern platform should integrate seamlessly with other benefits. Handling auto-enrolment pensions, holiday entitlements, and sick pay in the same system removes data silos and reduces admin. This holistic view also helps employees make better decisions about their financial and personal well-being.

Providing straightforward access to important payroll data is a win for everyone. Employees can log in to check payslips or request leave, while managers and accountants can oversee changes and generate reports on the fly. Transparent access fosters trust, supports compliance, and saves countless hours on back-and-forth communications.

Unleashing the Power of the Cloud for a Scalable Service

The cloud not only underpins mobility; it also lays the foundation for a scalable, high-performing service. As a company adds new hires or expands into multiple locations, a cloud-based system automatically grows with it. There’s no need to invest in extra hardware or endure complex software upgrades.
Moreover, a cloud service ensures that security patches, feature updates, and performance improvements are rolled out continuously behind the scenes. Companies no longer have to schedule downtime or worry about manual downloads. Everything happens in real time, freeing up resources to focus on core business activities.

Consolidating Business Operations: A Unified Approach

Many entrepreneurs dream of a single platform that consolidates business functions like payroll, HR, and expenses. Maintaining separate, unconnected applications for each task not only consumes more budget but also forces teams to juggle logins and manually reconcile data. By contrast, a unified approach minimises duplication and ensures everyone works from the same, up-to-date information.

Our aim is to create an environment where everyday business tasks—from onboarding to expense approvals—feed directly into your payroll workflows. This synergy reduces errors, speeds up decision-making, and makes life easier for busy founders and managers.

Expanding the Capabilities of Payroll Software: Going Beyond the Basics

We believe payroll software should do far more than calculate tax and NI contributions. It can offer real-time employee earnings tracking, integrate with accounting tools for easy reconciliation, and even provide financial wellness features like payslip forecasting and monthly pension adjustments. By expanding into these areas, payroll becomes a driver of efficiency across the organisation.

Other advanced features—like automated time tracking, flexible benefits enrolment, and smart compliance alerts—help companies manage complexity without drowning in administrative tasks. The ability to set triggers for statutory pay or seamlessly push data into accounting systems means fewer missed details and faster month-end closes.

Securing Your Data and Meeting Compliance

Data protection is paramount in an era where GDPR requirements must be met. Our mission is to ensure sensitive payroll details remain protected while still providing instant access to crucial analytics. By integrating robust security protocols and encryption for all payroll data, we help maintain user confidence in the system. As your service partner, we also ensure you stay updated with any regulatory changes from HMRC.

Looking Ahead: Join Us in Transforming Payroll for All

We want Aigence to be more than a marginal improvement over existing platforms. Our mission is to fundamentally rethink how payroll should function in a 21st-century workplace: automated, integrated, and accessible to all. There’s no reason smaller businesses, or even start-ups, should settle for second-rate solutions when technology has made so many improvements possible.

As we continue to develop, user feedback remains invaluable. By collaborating with founders, HR leaders, finance professionals, and even employees, we can build a system that meets real-world needs. After all, payroll touches every corner of a business—it shouldn’t be an afterthought.

Whether you’re a brand-new start-up taking advantage of our free payroll software offer or a more established organisation ready to streamline operations, our platform is designed to scale with you. We handle the heavy lifting of compliance and automation so you can focus on growth, innovation, and nurturing your team. We invite you to join us on this journey. From day one, we’ve envisioned a world where payroll isn’t a chore but a strategic advantage—where every business can save time, stay compliant, and empower its workforce. Let’s build that future together.

Thank you for reading! We look forward to helping founders and growing teams experience a new era of payroll—one that is intuitive, compliant, and ready to evolve as their business does.