FreeAgent vs Paylocity
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
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.
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
FreeAgent vs Paylocity: Side by Side
| Factor | FreeAgent | Paylocity |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | HR Software |
| Pricing Model | Paid | Paid |
| Starting Price | $12/mo | Custom pricing |
| Best For | UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools | Mid-market businesses with 20-1000 employees |
| Our Pick | — | — |
FreeAgent Features
- ✓Invoicing
- ✓expense management
- ✓bank feeds
- ✓time tracking
- ✓project management
- ✓self-assessment tax returns
- ✓VAT returns
- ✓payroll
- ✓financial reporting
- ✓mobile app
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
Pricing Comparison
Our Take
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Paylocity if mid-market businesses with 20-1000 employees.
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
Also Consider
If neither FreeAgent nor Paylocity is the right fit, Dext is worth evaluating.
Dext
Bookkeepers, accountants, and businesses with high receipt volumes wanting to eliminate manual data entry
From $15/mo
Frequently Asked Questions
What is the difference between FreeAgent and Paylocity?
FreeAgent is best for uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Paylocity is best for mid-market businesses with 20-1000 employees.
Which is better, FreeAgent or Paylocity?
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Paylocity if mid-market businesses with 20-1000 employees.
How much does FreeAgent cost?
FreeAgent starts at $12/mo. Pricing model: Paid.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
Who should use FreeAgent?
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Who should use Paylocity?
Mid-market businesses with 20-1000 employees