FreeAgent vs Paylocity

FreeAgent

FreeAgent is a cloud accounting platform designed specifically for freelancers, contractors, and small businesses in the UK. It offers automatic bank feeds, invoicing, expense management, and self-assessment tax return preparation. FreeAgent is particularly popular with UK freelancers and contractors for its excellent handling of UK tax requirements including Self Assessment and VAT returns.

Paid pricing · Get Pricing →

Paylocity

Paylocity is a modern HR and payroll platform designed for mid-market businesses. It combines payroll processing with employee engagement tools, learning management, and workforce analytics. Paylocity stands out for its strong mobile experience and focus on building connected, engaged workplaces.

Paid pricing · Get Pricing →

Pros

• ✓Excellent UK tax compliance including Self Assessment and VAT returns
• ✓Designed specifically for freelancers and contractors
• ✓Clean and easy to use interface
• ✓Automatic bank feeds save significant time

Cons

• ✗Primarily suited for UK market — limited value for non-UK businesses
• ✗Less feature-rich than QuickBooks for complex business needs
• ✗Smaller integration ecosystem than larger competitors
• ✗Not suitable for larger businesses with complex accounting needs

Pros

• ✓Strong employee engagement and communication tools
• ✓Excellent mobile app for both managers and employees
• ✓Modern UI with good user adoption rates
• ✓Robust payroll with strong compliance features

Cons

• ✗Pricing requires a sales call and is not published online
• ✗Implementation can be complex for larger organizations
• ✗Some advanced features require additional modules at extra cost

Best For

UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools

Best For

Mid-market businesses with 20-1000 employees