Paylocity vs FreeAgent
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
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.
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
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
Paylocity vs FreeAgent: Side by Side
| Factor | Paylocity | FreeAgent |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | Custom pricing | $12/mo |
| Best For | Mid-market businesses with 20-1000 employees | UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools |
| Our Pick | — | — |
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
FreeAgent Features
- ✓Invoicing
- ✓expense management
- ✓bank feeds
- ✓time tracking
- ✓project management
- ✓self-assessment tax returns
- ✓VAT returns
- ✓payroll
- ✓financial reporting
- ✓mobile app
Pricing Comparison
Our Take
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools.
Best For
Mid-market businesses with 20-1000 employees
Best For
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Also Consider
If neither Paylocity nor FreeAgent is the right fit, Justworks is worth evaluating.
Justworks
Small businesses wanting Fortune 500 benefits
From $59/employee/mo
Frequently Asked Questions
What is the difference between Paylocity and FreeAgent?
Paylocity is best for mid-market businesses with 20-1000 employees. FreeAgent is best for uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools.
Which is better, Paylocity or FreeAgent?
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
How much does FreeAgent cost?
FreeAgent starts at $12/mo. Pricing model: Paid.
Who should use Paylocity?
Mid-market businesses with 20-1000 employees
Who should use FreeAgent?
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools