How to hire employees in UK

The UK offers foreign companies a compelling entry point into European markets. Highly skilled English-speaking workforce, world-class financial services sector, strong legal framework, and strategic timezone positioning between the US and Asian markets.

However, post-Brexit flexibility does not necessarily mean regulatory simplicity.

The UK enforces comprehensive employment regulations with strict compliance expectations across Employment Rights Bill reforms, IR35 contractor rules, and detailed PAYE requirements. Early missteps in contract structure, National Insurance calculations, or employee classification trigger costly disputes, regulatory penalties, and expansion delays that compound with every hire.

Hiring employees in the UK requires:

• Clarity on hiring models (entity vs. Employer of Record vs. contractor)
• Mandatory employer obligations under UK employment legislation
• Payroll tax structures and National Insurance contributions
• Termination protections and notice requirements
• Legal distinctions separating compliant employment from misclassification risk

This guide walks you through each step: choosing the right hiring model, onboarding your first employee, managing payroll, navigating termination rules, and avoiding compliance traps that catch unprepared employers off guard.

Core truth: Hiring employees in the UK requires the right hiring model and strict adherence to local labor laws. One hire done wrong costs more than doing ten right.

What Are Your Employment Options When Hiring in the UK?

Before posting a job or signing an offer letter, decide how you'll employ talent. Foreign companies typically choose between three models: establishing a local entity, partnering with an Employer of Record (EOR), or engaging contractors. Each has distinct implications for compliance risk, cost structure, and operational control.

Entity setup → means full legal presence. Register a UK company (Limited Company), handle all employer obligations directly, and bear complete liability.

EOR hiring → outsources employment compliance to a third-party legal employer while you retain operational control.

Contractor engagement → treats individuals as independent service providers, not employees. But only when the relationship genuinely reflects independence.

The stakes are higher than they appear. Misclassifying an employee as a contractor triggers back taxes, National Insurance penalties, and IR35 investigations. Setting up a local entity in the UK incurs hiring costs of £1,000–£3,000, which includes registration fees, legal services, accounting setup, and regulatory filings with Companies House and HMRC.

Choosing the wrong model doesn't just slow hiring. It creates legal exposure that compounds with every additional hire.

1. Hiring Through a Local Entity

Establishing a UK entity gives you direct control over employment, payroll, and benefits administration. You become the legal employer. Full responsibility for UK employment law compliance, PAYE tax withholding, National Insurance contributions, and statutory filings.

This model makes sense when:

• You're committing to long-term operations in the UK
• Hiring at scale (typically 10+ employees)
• You need to own intellectual property and operational infrastructure locally

The trade-off: entity formation takes 1-3 months, requires ongoing legal and accounting support, and locks you into administrative obligations even if hiring slows.

2. Hiring Through an Employer of Record (EOR)

An EOR becomes the legal employer in the UK while you direct the employee's day-to-day work. The EOR handles employment contracts, payroll processing, tax compliance, National Insurance administration, and statutory filings.

You maintain operational control. They absorb legal liability.

EOR hiring suits:

• Companies testing the UK market
• Scaling quickly (hires live in days, not months)
• Expanding into multiple countries without establishing entities everywhere

It's not a workaround. It's a legitimate employment model under UK law, ideal when speed, compliance assurance, and low upfront cost matter more than direct entity ownership.

3. Hiring Independent Contractors

Contractors are appropriate for project-based work, specialized services, or genuinely independent engagements. UK law distinguishes employees from contractors based on control, substitution rights, mutuality of obligation, and the reality of the working relationship. Not what the contract says.

Misclassification happens when companies treat contractors like employees:

• Setting their hours and work schedules
• Providing equipment and workspace
• Directing how work is done
• Maintaining exclusive relationships

Local Entity Vs EOR Vs Independent Contractor: Side-by-Side Comparison

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What Are The Legal Requirements for Hiring in the UK?

UK employment law operates through various statutes, including the Employment Rights Act 1996, Equality Act 2010, and forthcoming Employment Rights Bill reforms. The UK's regulatory framework emphasizes flexible employment relationships balanced with worker protections.

Key employer obligations:

• Provide a written statement of employment particulars (day one rights)
• Register as an employer with HMRC for PAYE
• Operate the PAYE system, deducting income tax and National Insurance
• Make employer National Insurance contributions (15% on earnings over £5,000 annual threshold from April 2025)
• Enroll eligible employees in a workplace pension scheme (auto-enrolment)
• Make employer pension contributions (minimum 3% of qualifying earnings)
• Provide statutory minimum paid leave (28 days, including public holidays)
• Pay the National Living Wage or the National Minimum Wage, depending on age
• Comply with working time regulations (48-hour average weekly limit, rest breaks)
• Maintain employment records and right-to-work documentation

Employment relationships can be employees, workers, or self-employed contractors with different rights. Probationary periods are customary (typically 3-6 months) but not mandatory by statute.

The UK's enforcement environment is not theoretical. HMRC conducts payroll compliance checks and IR35 investigations. Employees can file claims through Employment Tribunals. Non-compliance with payroll or employment standards results in financial penalties, back-payment orders, and reputational damage.

The presumption favors worker protection when classification is ambiguous.

What Are the Employment Contract Rules in the UK?

Written employment contracts are not legally mandatory, but a written statement of employment particulars must be provided from day one of employment (expanded day one rights as of April 2020).

While oral agreements are valid, written contracts are strongly recommended to avoid disputes. The written statement must be in English, provided to the employee, and include all essential employment terms.

Types of Employment Contracts

• Permanent contracts are the most common form. They continue until lawfully terminated by either party with proper notice and include full employment rights.
• Fixed-term contracts are permitted for specific reasons such as temporary project work, seasonal employment, or covering absent employees. Fixed-term employees have equal treatment rights compared to permanent staff. Renewal of fixed-term contracts beyond 4 years automatically converts to permanent status unless objectively justified.
• Zero-hours contracts permit flexible arrangements where the employer doesn't guarantee minimum hours, and the employee can decline work. Recent reforms prohibit exclusivity clauses and provide rights to request guaranteed hours after 12 weeks.
• Part-time contracts specify regular working hours less than full-time (typically less than 35-40 hours per week) with pro-rata entitlements to benefits and leave.

Full-time employment typically follows a 35-40 hour workweek, with a statutory maximum of 48 hours per week averaged over 17 weeks (unless employee opts out).

Probationary periods allow employers to assess new hires with shorter notice periods (typically 1 week during the first month, then statutory minimums). Unfair dismissal protection begins after 2 years of continuous service (except for automatically unfair reasons).

What to Include in an Offer Letter?

Employment offers must specify essential terms required in a written statement of employment particulars.

Essential elements for the day one written statement:

• Employer and employee names
• Start date and whether previous employment counts toward continuous service
• Job title or description
• Place of work or confirmation of mobile working
• Gross salary and payment frequency
• Working hours and days
• Holiday entitlement (minimum 5.6 weeks including public holidays)
• Notice period requirements
• Pension scheme details and auto-enrolment information
• Probation period (if applicable)
• Any collective agreements affecting terms

Additional recommended elements:

• Benefits (private medical insurance, bonuses, share schemes)
• Restrictive covenants (confidentiality, non-compete, non-solicitation)
• IP assignment clauses
• Grievance and disciplinary procedures

Clarity matters. Ambiguous terms create disputes during performance reviews or terminations. UK courts and tribunals interpret contract ambiguities applying the contra proferentem principle (against the drafter).

NDAs and Confidentiality Agreements

Confidentiality clauses are enforceable under UK law, particularly when protecting trade secrets, client information, or proprietary processes. Intellectual property (IP) created during employment typically belongs to the employer for work-related inventions under the Copyright, Designs and Patents Act 1988.

Post-employment restrictive covenants (non-compete, non-solicitation, non-dealing) are valid but must meet strict requirements: reasonable duration (typically 3-12 months), reasonable geographic scope, protect legitimate business interests only, and go no further than necessary. Courts scrutinize restrictive covenants closely and sever or strike down excessive provisions.

Overly broad restrictive covenants risk being unenforceable.

How Payroll Costs and Taxes Work in the UK?

The UK's labor costs are competitive within Western Europe. But only if you understand the full employer burden.

As of April 2026, the UK's National Living Wage is £12.21 per hour for workers aged 21 and over (6-7% uplift expected), equating to approximately £1,850+ gross monthly for full-time work. Typical total employer costs for mid-level hires range from £3,500 to £7,000 per month, including gross salary and mandatory contributions.

1. Payroll and Salary Structure in the UK

Salaries are quoted and paid in pounds sterling (£). Compensation typically includes base salary, performance bonuses (if applicable), pension contributions, and benefits (private medical insurance, season ticket loans are common).

Employers must meet the National Living Wage for ages 21+ or the National Minimum Wage for younger workers (rates vary by age band: 18-20, under 18, apprentices).

2. Employer Payroll Obligations

Employers face mandatory contributions post-2025 Budget changes:

• Employer National Insurance: 15% on employee earnings above £5,000 annual threshold (increased from 13.8% and lowered threshold from £9,100)
• Workplace pension (auto-enrolment): Minimum 3% employer contribution on qualifying earnings (£6,240-£50,270 band for 2025-26)
• Apprenticeship Levy: 0.5% of annual payroll if payroll exceeds £3 million (effectively 3% rate with £15,000 annual allowance)
• Shared Parental Pay, Statutory Sick Pay, Maternity Pay: Employers pay statutory amounts and can reclaim most (some small employers can reclaim 103%)

Total employer burden typically ranges 15-20% above gross salary for National Insurance and pension, plus statutory payment obligations.

These contributions sit on top of the employee's gross salary. Not embedded within it.

3. Employee Tax Contributions

Employees face significant deductions withheld through PAYE:

• Employee National Insurance: 8% on earnings £12,570-£50,270, 2% on earnings above £50,270
• Income Tax (PAYE): Progressive rates based on tax bands
• Student Loan repayments: 9% above threshold (if applicable, various plans)
• Workplace pension employee contribution: Minimum 5% of qualifying earnings

Income tax bands (2025-26 tax year):

• Personal Allowance: £0 – £12,570: 0%
• Basic rate: £12,571 – £50,270: 20%
• Higher rate: £50,271 – £125,140: 40%
• Additional rate: Above £125,140: 45%

Personal allowance is reduced by £1 for every £2 earned over £100,000.

Total employee deductions range from 20-45% of gross salary, depending on income level and circumstances.

4. Social Security Contributions

UK National Insurance serves as the social security system, funding the state pension, NHS healthcare, and unemployment benefits. Both employer (15% on earnings over £5,000) and employee (8-12% tiered) contribute through the PAYE system operated by employers.

5. Minimum Wage and Statutory Pay Requirements

National Living Wage of £12.21 per hour (April 2026 for ages 21+) applies, with lower rates for younger workers:

• Ages 18-20: £10.00 per hour
• Under 18: £7.55 per hour
• Apprentice rate: £7.55 per hour

Employers must also pay:

• Overtime (no statutory premium but commonly 1.5x-2x base rate by custom)
• Statutory Sick Pay (£116.75 per week for eligible employees)
• Statutory Maternity/Paternity/Adoption Pay (90% of earnings then £184.03 per week or 90% if less)
• Holiday pay (5.6 weeks minimum, including public holidays, paid at normal rate)
• Statutory redundancy pay (for 2+ years service: 0.5-1.5 weeks pay per year, depending on age, capped)

In practical terms, employers should budget 15-20% above gross salary for statutory employer contributions. For professional roles, this puts the true monthly cost of hiring in the UK between £3,500 and £7,000, depending on seniority and role.

How Employers Pay Employees in the UK?

1. Payment Methods

Salaries are paid via bank transfer (BACS) to the employee's UK bank account. Direct bank payment is standard practice.

Cash payments are uncommon and create compliance risks.

Payslips must contain (legally required):

• Gross pay
• All deductions (income tax, National Insurance, pension contributions, student loans)
• Net pay
• Employer National Insurance contributions (good practice)
• Pay period
• Tax code and National Insurance number

Payslips must be provided with every payment, typically electronically or in print.

2. Salary Payment Frequency

Payroll typically runs monthly (most common) or weekly/fortnightly, depending on industry and role.

Monthly paid employees commonly receive their salary on the last working day of the month or a specific fixed date (e.g., 25th).

Payment delays beyond agreed dates breach contract and employment law, giving employees grounds for claims or resignation (constructive dismissal).

How To Onboard Employees in the UK?

1. New Hire Onboarding Checklist

Register with HMRC as an employer before the first payday (if not already registered). Provide a written statement of employment particulars, company policies, role-specific training materials, and access to payroll/benefits systems.

Onboarding essentials:

• Register as an employer with HMRC PAYE if first hire
• Verify employee's right to work in the UK (check documentation, keep copies)
• Obtain the employee's National Insurance number and tax code
• Provide a written statement of employment particulars (day one requirement)
• Enroll eligible employees in workplace pension within 3 months (auto-enrolment)
• Set up PAYE payroll deductions
• Provide the company handbook and policies
• Conduct workplace health and safety orientation
• Assign a direct manager and clarify expectations

Schedule orientation sessions covering workplace health and safety, data privacy policies under UK GDPR, and reporting structures. Ensure the employee understands holiday booking procedures, absence reporting, and performance review processes.

2. Required Employee Documentation

UK employment and tax regulations require employers to collect specific employee documents at the time of onboarding. These records support payroll processing, right to work compliance, and statutory obligations.

Documents you need from new hires:

• Right to work documentation (passport, visa, settled/pre-settled status confirmation)
• National Insurance number
• P45 from previous employer (or complete starter checklist if none)
• Bank account details for salary payment
• Proof of address
• Educational certificates and professional qualifications relevant to the role
• Completed pension opt-out form (if employee chooses to opt out after auto-enrolment)

Maintain copies of right to work checks (dated, with original document verification), signed employment contract/written statement, pension enrolment documentation, and policy acknowledgments in the employee's personnel file. Right to work checks must be conducted before employment starts to avoid civil penalties (up to £20,000 per illegal worker).

What Are The Best Practices Of Interviewing and Hiring in the UK?

UK employment law prohibits discrimination based on age, disability, gender reassignment, marriage/civil partnership, pregnancy/maternity, race, religion/belief, sex, or sexual orientation (Equality Act 2010 protected characteristics). Interview questions must focus strictly on job-related qualifications and competencies.

• Avoid questions about family planning, marital status, religious beliefs, political affiliations, pregnancy intentions, age, or health conditions unless demonstrably relevant to essential job requirements (occupational requirement defense applies in very limited circumstances).
• Data privacy matters. Under UK GDPR, candidate information must be collected with consent, stored securely, and used only for recruitment purposes. Candidates have extensive rights to access, correct, and request deletion of their information.
• Document retention and processing justifications carefully. Keep recruitment records for 6 months after hiring decision to defend against discrimination claims.
• UK candidates value flexible working, career development, and work-life balance.
• Communicate hiring timelines, provide prompt feedback, and set realistic expectations about compensation and role responsibilities.

A sluggish or opaque hiring process signals organizational dysfunction.

Work Permits and Right to Work in the UK

1. British and Irish citizens have unrestricted work rights in the UK and require no permits.

2. EU/EEA/Swiss citizens with settled or pre-settled status under EU Settlement Scheme have work rights (scheme closed to new applicants June 2021).

3. Non-UK/Irish nationals require a valid immigration status with work authorization before starting employment. Common work authorization routes include:

• Skilled Worker visa: For skilled roles with licensed sponsor employers (most common route)
• Global Talent visa: For leaders/potential leaders in academia, research, arts, and digital technology
• Intra-company Transfer visa: For transfers within multinational companies
• Graduate visa: For recent UK university graduates (2-3 years work rights, any job)
• High Potential Individual visa: For graduates of top global universities

Key considerations for sponsoring foreign nationals:

• Processing times: expect 3 to 8 weeks for most visa applications from outside the UK
• Employers must hold a Skilled Worker sponsor licence from UK Visas and Immigration
• Sponsor licence application costs £536-£1,476, depending on company size, and takes 8 weeks
• Certificate of Sponsorship (CoS) required for each sponsored employee (£239 per CoS)
• Salary thresholds apply: generally £38,700 minimum or "going rate" for occupation, whichever is higher (reduced thresholds for some circumstances)
• Jobs must meet skill level RQF Level 3 or above (A-level equivalent)
• Immigration Skills Charge: £1,000 per year for large sponsors, £364 per year for small/charitable sponsors

Hiring non-UK/Irish nationals without a valid right to work exposes employers to civil penalties up to £20,000 per illegal worker (first breach) or £60,000 (repeat breach), potential criminal prosecution, and sponsor licence revocation.

How Does Employment Termination Work in the UK?

1. Lawful Grounds for Termination

Employers can terminate for fair reasons (capability, conduct, redundancy, statutory restriction, some other substantial reason) or by mutual agreement.

Termination requires fair reason and fair procedure. Employers must follow the appropriate process (warnings for conduct/capability, consultation for redundancy) and cannot dismiss unfairly.

Employees with 2+ years continuous service have protection against unfair dismissal (can claim at the Employment Tribunal). Automatically unfair reasons (whistleblowing, pregnancy, discrimination, health and safety) protect employees regardless of service length.

2. Notice Periods

Notice periods depend on employment duration and contract terms:

Statutory minimum notice (employer to employee):

• Less than 1 month service: None (or as per contract)
• 1 month to 2 years: 1 week minimum
• 2+ years: 1 week per year of service (maximum 12 weeks)

Statutory minimum notice (employee to employer):

• 1 week minimum after 1 month of service (regardless of tenure)

Contractual notice:

• Often exceeds statutory minimums (commonly 1-3 months for professional roles)
• Must be honored unless gross misconduct or a payment in lieu clause exists

During probation:

• Shorter notice periods apply (commonly 1 week or as specified in the contract)

Employers can pay notice period in lieu (PILON) if the contract permits or by mutual agreement. Both parties must provide written notice.

3. Severance Requirements

UK law provides limited statutory severance:

Statutory redundancy pay:

• Applies to employees with 2+ years of continuous service made redundant
• Calculation: 0.5 weeks pay per year under age 22, 1 week per year ages 22-40, 1.5 weeks per year age 41+
• Maximum 20 years' service counted, capped at £700 per week (2025-26)
• Tax-free up to £30,000

Contractual redundancy pay:

• Many employers offer enhanced redundancy packages above the statutory minimum
• Typically, 1-4 weeks' pay per year of service negotiated or in contract/policy

Settlement agreements:

• Most negotiated exits are formalized through settlement agreements (formerly compromise agreements)
• Typical offers: 1-6 months' salary, depending on circumstances, service length, dismissal risk
• Employee must receive independent legal advice (employer typically pays £500+ contribution)

Fair dismissal (capability/conduct):

• No statutory severance required if the proper process is followed
• Employee is entitled to notice period or payment in lieu only

Unfair dismissal compensation:

• Basic award: Calculated as the redundancy pay formula
• Compensatory award: Financial losses resulting from dismissal (capped at £115,115 or 52 weeks' pay, whichever is lower)
• Median tribunal awards approximately £6,000-£10,000

All terminations trigger payment of accrued but untaken holiday pay (statutory minimum).

Employee vs Contractor Classification in the UK

UK authorities assess classification for tax purposes (IR35 rules) and employment status using tests for control, substitution rights, mutuality of obligation, integration, and economic reality. HMRC and tribunals determine status based on actual working practices. Contracts labeled "self-employed" or "consultant" mean nothing if the working relationship resembles employment.

Misclassification consequences include:

• IR35 liability: If deemed "inside IR35" (disguised employment), the deemed payment calculation triggers:
  
  • Employee income tax and National Insurance on payments (contractor pays)
  • Employer National Insurance on payments (end client or fee-payer liable if medium/large organization)
  • Penalties and interest on underpaid amounts
• Employment status determination: If deemed employee or worker:
  
  • Backdated employment rights (holiday pay, minimum wage, sick pay, pension)
  • Employer National Insurance and PAYE on all past payments
  • Penalties from HMRC for operating payroll incorrectly
  • Employment Tribunal claims for denied rights

The "IR35 doesn't apply to us" myth dies fast when HMRC investigations begin. HMRC actively targets non-compliance through status determination reviews, particularly for public sector engagements and medium/large private sector clients (which must make status determinations).

What Compliance Risks Should Employers Know When Hiring in the UK?

• Payroll non-compliance (incorrect PAYE operation, missed National Insurance payments, failure to operate pension auto-enrolment, or inaccurate Real Time Information submissions to HMRC) results in financial penalties, back-payments with interest, and potential criminal prosecution for serious fraud. HMRC conducts compliance checks, and penalties range from fixed amounts to percentage-based for deliberate errors.
• Right to work violations (failure to conduct proper pre-employment checks, employing individuals without valid immigration status) result in civil penalties up to £60,000 per illegal worker and potential criminal prosecution. Sponsor licence holders face additional sanctions, including licence revocation.
• Termination disputes arise when employers bypass fair procedures, fail to demonstrate fair reason, miscalculate notice or redundancy pay, or dismiss for automatically unfair reasons. Employment Tribunals award compensation for unfair dismissal (median awards £6,000-£10,000, but can reach £115,115+ for compensatory awards). Additionally, discrimination claims have unlimited compensation.

With unemployment at 5.1% (three months to October 2025) forecasted to average 4.3-5.3% in 2026, rising from 4.3% in 2024, and wage growth cooling to 3.1-3.5% by end-2026 (private sector regular pay down from 4.7% peaks), the UK faces softening labor market conditions. GDP growth projected at 1.4% for 2026 supports selective hiring despite elevated employer costs from National Insurance hikes and National Living Wage pressures.

Compliance failures don't just cost money. They damage the employer brand in a market where talent competition remains fierce in technology, financial services, and specialized professional services despite economic headwinds.

How an Employer of Record (EOR) Helps You Hire in the UK?

An EOR eliminates entity formation delays, absorbs compliance risk, and handles payroll, PAYE, National Insurance, and pension auto-enrolment administration.

What you gain with an EOR:

• Speed: Hires go live in days instead of months
• Certainty: UK employment law adherence, accurate PAYE operation, proper National Insurance remittance at 15% new rate
• Control: Employee reports to you, performs work under your direction
• Risk mitigation: EOR handles complex IR35 considerations, right to work verification, pension compliance, and Employment Rights Bill changes

EORs don't replace strategic workforce planning. They enable it.

• Testing the UK market without committing to entity setup costs? An Employer of Record (EOR) model makes sense.
• Scaling from 2 to 20 employees within six months? An EOR enables rapid, compliant growth.
• Hiring across multiple countries without setting up local subsidiaries? An EOR keeps expansion flexible and manageable.

The model works because it's legally recognized: the EOR is the statutory employer, you're the client directing day-to-day work, and the employee receives full UK employment law protections.

How Gloroots Simplifies Hiring in the UK?

When hiring in the UK through Gloroots, the entire process is managed for you end-to-end. You do not need to coordinate vendors, navigate local regulations, or manage administrative steps.

Gloroots runs the complete hiring workflow:

• Candidate sourcing, shortlisting, and background verification
• Initial screening to assess skills, experience, and role fit
• Interview coordination for final selection
• Offer issuance and compliant employment setup
• Statutory registrations (HMRC PAYE, pension auto-enrolment), payroll setup, and benefits administration
• Employee onboarding aligned with UK employment regulations
• Right to work verification and documentation

This model removes operational overhead entirely, allowing you to focus on building and managing your team while Gloroots handles hiring execution, compliance, and onboarding from start to finish.

Gloroots provides end-to-end EOR services in the UK, handling employment contracts, payroll processing, PAYE tax compliance, National Insurance administration at the new 15% employer rate, pension auto-enrolment, and statutory filings. Local compliance expertise ensures your hiring aligns with UK employment law requirements and Employment Rights Bill reforms, from contract drafting to termination procedures.

The platform combines self-service functionality (contract management, onboarding workflows, payroll visibility) with dedicated customer success support.

With Gloroots, you get:

• Audit-ready reporting
• Transparent cost breakdowns
• Finance-team-friendly invoicing with country-level detail
• GL mapping

Gloroots scales with you: whether hiring your first UK employee or expanding a distributed team across 140+ countries, the infrastructure supports growth without the complexity of multi-entity management.

It's not a vendor relationship. It's workforce infrastructure that adapts to your expansion strategy.

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FAQs About Hiring Employees in the UK

1. Can a foreign company hire employees in the UK without setting up a local entity?

Yes. Foreign companies can hire through an Employer of Record (EOR) without establishing a UK entity. The EOR becomes the legal employer, handling compliance, payroll, PAYE, and National Insurance obligations while you direct the employee's work.

2. What are the legal requirements for hiring employees in the UK?

Employers must provide written statement of employment particulars from day one, verify right to work before start date, register with HMRC for PAYE, operate payroll deducting income tax and National Insurance, make employer National Insurance contributions (15% on earnings over £5,000 threshold), enroll eligible employees in workplace pension (3% minimum employer contribution), and comply with UK employment law on hours, leave, and termination.

3. What taxes and social security contributions do employers pay in the UK?

Employers contribute 15% National Insurance on employee earnings above the £5,000 annual threshold (post-2025 Budget increase) plus a minimum 3% workplace pension contribution on qualifying earnings (£6,240-£50,270 band). Employees pay 8-12% National Insurance plus 20-45% income tax. For professional roles earning £3,500-7,000 monthly, the total employer cost, including contributions, ranges from £4,025 to £ 8,400.

4. How long does it take to hire and onboard an employee in the UK?

Through an EOR, hiring and onboarding can occur within 5 to 10 business days. Establishing a local entity first adds 1 to 3 months for registration and regulatory setup.

5. What is the easiest way to hire employees in the UK compliantly?

Partnering with an EOR is the fastest, lowest-risk path. The EOR handles contracts, payroll, PAYE, National Insurance at the new 15% rate, pension auto-enrolment, right to work verification, and benefits while you maintain operational control, eliminating entity formation costs and enabling hiring within days.

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