How to Build a More Profitable Payroll Service in 2026/27

Payroll has never had a reputation for making profit. You offer it because clients expect it. Tight margins and the amount of admin involved have made it difficult for payroll to become a profitable service.

For the 2026/27 tax year, that’s all about to change.

If you choose the right cloud payroll software, payroll can be so much more than a tick-the-box service. It can be a real revenue generator and commercial opportunity for your firm.

This can be done through pricing models, less time wasted from reduced admin, and adding more value to your clients’ experience of your once mundane payroll offering.

Let’s jump into pricing models first.

What pricing models can I use to boost payroll profits?

There are several ways you can price payroll to generate more profit. If you’re using cloud payroll software, these include (but are certainly not limited to):

1. Charge per employee: Rather offering a flat rate, charge the client per employee. If you’re offering their employees access to additional perks like downloadable payslips and annual leave calendars, why not? That way, you grow as they grow.

2. Up your fees, then offer it as a freebie: If you’re not up for charging per employee, just up your fees to cover the new and improved payroll offering. You can then offer it as a ‘freebie’ to new customers. This increases the quality of your services and places you in a much higher-value position.

3. Tiered pricing packages: Segment all the additional features you offer into three categories. For example, you could have a bronze, silver and gold package. Bronze offers the basic package, silver offers a couple of additional features, and gold offers everything.

How cloud payroll software reduces your administrative burden

There are many factors that can plummet your payroll profits. One of them is the amount of admin work that’s required to get the job done.

However, with the cloud, that’s no longer an issue. Why?

• You don’t need to download and install the latest version of the software, it’s always up to date, while you work.

• You can access the payroll from anywhere at any time. All you need is your log in credentials and you’re good to go.

• Smart integrations mean that payroll journals and pension files can be submitted through the software rather than through a separate system.

• Clients and employees can manage their annual leave from tablets or smartphones.

Make payroll efficiency gains through automation

Not only does cloud payroll software reduce the amount of admin your team has to undertake. It can also improve your firm’s efficiency and security.

Forgot what the payroll changes for the 2026/27 tax year are? No worries. With cloud payroll software, legislation updates are automatically applied in the background, while you work. This cuts down on confusion and errors, significantly boosting firm efficiency.

Left your computer unlocked while you were out for lunch? Our own cloud payroll software, BrightPay Cloud, can be accessed from any device, once you’ve got login credentials. That way, you can turn off your PC without fear of losing what you’re working on. Changes are applied instantly (even if multiple people are in the one file) and it’s hosted in iS0 27001 / SOC 2 certified data centres powered by Microsoft Azure. This means top-notch security for your clients’ sensitive payroll data. No more losses, fear mongering, or sleep lost over confidential information.

We’re also beginning to dive into world of AI with our onboarding AI agent, Oscar. Oscar will take leaps and bounds in firm efficiency by automating almost the entire onboarding process. Oscar can reach out to new employees, chases them up for any missing bits, and have them ready to go in the software.

Assess if your current payroll software supports profitability

If your payroll software is just a means to an end, it’s time for a change. Payroll should be a growth driver for every firm in 2026, not just an add-on service.

By adding more features to your payroll offering, you’re offering more value to clients. This doesn’t just improve your own firm’s efficiency, it’s also improving efficiency for your clients and their employees.

Our cloud payroll software offers everything we’ve mentioned above and more. To see what it could do for your 2026/27 tax year, book a slot with our team today.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.