Quick answer: For a UK SME in 2026, outsourced HR typically costs roughly £200 to £600 per month on a retainer, or about £80 to £150-plus per hour ad hoc. One-off pieces such as a compliance audit or a contract and handbook usually run from a few hundred pounds. The exact figure depends on your headcount, how much support you use, and whether HR software is included. As a worked example, Beagle HR’s retained support starts from £249 per month.
Typical costs
| Service | Typical UK range | Beagle HR (from) |
|---|---|---|
| Retained HR support (monthly) | £200 to £600+/month | £249/month |
| Full HR setup programme | Varies by provider | £449/month over 6 months |
| One-off HR compliance audit | £300 to £1,500 | £495 |
| Contracts and handbook | £400 to £1,500 | £695 |
| Ad hoc advice (per hour) | £80 to £150+ | Quoted per piece |
| Redundancy support (per case) | £300 to £1,000+ | £ 695 + VAT |
Ranges are general market estimates for 2026 and vary by provider and region. Always check a live quote.
What drives the price
- Headcount and how many employees you need covered.
- How often issues come up (volume of advice and casework).
- Whether HR software, for example Breathe HR, is included.
- One-off project versus ongoing retainer, and the complexity of your sector.
Ways to buy
- Retainer: a predictable monthly fee for ongoing access and updates.
- Ad hoc: pay per issue, best if you only need HR occasionally.
- Fixed project: a set fee for a defined piece, such as an audit or new contracts.
Frequently asked questions
Is outsourced HR cheaper than hiring?
For most businesses under about 25 to 30 staff, yes. You get broad expertise for a fraction of an HR salary.
What is included in a retainer?
Typically unlimited phone and email advice, contract and policy updates when the law changes, and support with issues as they arise.
Are there hidden costs?
With fixed-fee providers like Beagle HR, no. Always check whether software, VAT or per-employee fees are charged on top.