Employer of Record (EOR) United Kingdom (UK): Hire, Manage, and Pay Talent Seamlessly

Hire remote employees anywhere in the UK while Tarmack, as your EOR United Kingdom, handles all employer-related responsibilities.

UK Hiring and Onboarding

Pay your UK employees accurately and on time. Tarmack, as your UK employer of record, manages payroll in line with HMRC and local tax regulations.

Payroll Management

UK labour laws change often. We stay on top of them so you don’t have to.

Compliance Assurance

Meet UK employee benefit expectations with ease. Tarmack handles compliance and administration as your EOR United Kingdom.

Benefits Administration

Enter the UK market without a local entity. Tarmack provides employer of record services UK businesses rely on, handling all employment, payroll, and compliance as your legal employer. <a href='https://www.tarmack.com/get-started' target='_blank'>Connect with us to get started.</a>

Employer of Record Services United Kingdom

Benefits of Employer of Record UK

1. Employee Services

2. Contractor Services

3. Corporate & Regulatory Services

Enter the UK market without a local entity. Tarmack offers transparent employer of record pricing UK companies can trust, while handling all employment, payroll, and compliance as your legal employer. <a href='https://www.tarmack.com/get-started' target='_blank'>Connect with us to get started</a>.

Employer of Record UK Pricing Structure

1. Written Statement of Employment Particulars

2. Types of Employment Contracts in the UK

3. UK Compliance Essentials for Employers

2. Employer National Insurance (NIC)

B) Honouring Statutory Rights These rights cannot be bypassed by contract:

Paid Holiday: 5.6 weeks per year (28 days for full-time).

Pension Auto-Enrolment: Employers must automatically enroll eligible staff (aged 22+, earning >£10,000/year) into a pension scheme.

C) Prevention of Sexual Harassment Under the Worker Protection Act (October 2024), UK employers have a positive legal duty to take 'reasonable steps' to prevent sexual harassment of their employees.

4. Right to Work Compliance in the UK

Employment Contracts in UK

Hiring someone into a UK organisation isn’t just about a warm welcome, it’s about getting the legal steps right from the very beginning. A few missed checks by the employer can turn into steep penalties, so a clear onboarding process saves time, stress, and money.

Onboarding Requirements in the United Kingdom

These steps must be completed by the employer before the employee starts work as they form the legal foundation of UK onboarding.

Phase 1: Pre-Start Essentials (Before Day 1)

Phase 2: Day 1 & Week 1 (Integration)

Onboarding doesn’t end after induction. These first three months build long-term alignment.

Phase 3: First 30 / 60 / 90 Days (Development)

While an employer may dismiss an employee with less than 2 years of service more easily, following a fair process (including clear feedback during probation) significantly reduces the risk of discrimination or automatically unfair dismissal claims.

Onboarding Process in UK

Employee Onboarding in UK

The UK work visa is based on a Points Based System (PBS) and has five tiers.

Who can apply

Visa in UK

What Is A UK Work Permit?

A Sponsor Licence is mandatory to employ workers who do not already hold unrestricted UK work rights. The licence:

1. Sponsor Licence: Mandatory Requirement

A licence must be granted before any Certificate of Sponsorship is issued.

2. Skilled Worker Visa: Core Work Permit Route

Although the Skilled Worker route is legally points-based (70 points). These points are automatically satisfied when role, salary, and English language requirements are met.

The Temporary Shortage List allows limited sponsorship of selected lower-skill roles on a time-restricted basis. Key limitations include:

3. Temporary Shortage List (TSL)

This list is subject to regular review and is not a long-term hiring solution.

A Certificate of Sponsorship is a digital record issued by the licensed employer. It confirms the job offer, salary, and role details and is required before the worker can apply for a visa. Each CoS must be accurate and role-specific. Incorrect or premature assignment can trigger compliance action.

4. Certificate of Sponsorship (CoS)

5. Right-to-Work Checks

6. Cost & Compliance Rules

What’s coming in 2026?

Work Permit in the UK: What Employers Need to Know?

In the United Kingdom, the minimum wage is hourly and based on the age of the employee. It is revised annually by the government.

Minimum Wage in UK

The United Kingdom follows a monthly payroll cycle.

Payroll Cycle in UK

There is no statutory requirement for bonuses in the UK. It depends on the discretion of the corporate policy.

Annual Bonus in UK

Health Benefits in UK

Working hours and overtime in UK

Statutory Sick Leaves (SSL)

Maternity and Paternity leaves

Holidays

Employers are not obliged to give bank holidays off, but they must mention this in their written contract.

Public holidays for the year 2024 are the following:

Public holidays for the year 2025 are the following:

Leaves in UK

UK National Insurance operates through contribution classes, each serving a different purpose. Employers are mainly concerned with Class 1, Class 1A, and Class 1B contributions.

What Employers Must Pay Attention To?

1. Employer NIC Responsibilities

2. Employment Allowance

3. NIC Category Letters

Self-employed individuals pay different NIC classes based on profits:

4. Self-Employed NICs

Social Security Contributions in the UK (National Insurance)

1. Personal Allowance — Tax-Free Income

This allowance applies to most UK residents and is the first deduction before tax rates are applied.

Once personal allowances are applied, taxable income is taxed in bands:

2. UK Income Tax Bands and Rates (England, Wales & NI)

Separate rates apply to savings (interest) and dividends:

3. Savings and Dividend Income Rates in UK

Scotland sets its own income tax rates and bands for earnings. The Scottish system includes additional bands and slightly different rates , for example, a starter rate and intermediate rate below the UK basic rate, but personal allowance rules are similar.

4. Scottish Taxpayer Differences

5. Employer Compliance Responsibilities

Personal Income Tax in UK

A. Registration Requirements Any employer operating payroll in the UK must run a PAYE (Pay As You Earn) scheme. PAYE is HMRC’s system for collecting Income Tax and National Insurance from employment income. Employers must register with HMRC when they:

1. Government Requirements

PAYE Registration Timeline: Two rules apply when registering for PAYE:

Registration Process: Registration can be completed online if directors hold UK National Insurance numbers. Otherwise, registration must be done directly with HMRC by phone.

HMRC Reference Numbers: HMRC issues PAYE and Accounts Office reference numbers within 10 working days. Payroll can be prepared earlier, but payments and filings cannot be submitted until references are received.

Real Time Information (RTI) Reporting:

B. Ongoing UK Payroll Compliance Requirements Once a PAYE scheme is registered, UK employers must meet ongoing reporting and payment obligations under HMRC’s Real Time Information (RTI) system.

Under the Pensions Act 2008, every UK employer with at least one worker has legal duties under workplace pension auto-enrolment.

2. Workplace Pension & Auto-Enrolment Obligations (UK)

A. Who must be automatically enrolled? A worker must be enrolled if they:

Workers under 22, over State Pension age, or earning below the threshold do not need to be auto-enrolled but may have opt-in rights.

UK employers are required to meet statutory obligations covering employee leave and related pay, including:

3. Statutory Leave & Employment Obligations

4. Payroll & Year-End Reporting Obligations

C. Benefits, Expenses & HMRC Reporting

E. National Minimum & National Living Wage The UK sets statutory minimum pay rates that all employers must observe. These vary by age and apprenticeship status. From 1 April 2025, the rates are:

F. Reducing Employer National Insurance: Employment Allowance Eligible employers can reduce their Class1 employer National Insurance contributions by up to £10,500 per year (2025/26).

Key update: The previous £100,000 NIC liability limit has been removed, so more employers are eligible.

G. Apprenticeship Levy: Supporting Workforce Training The Apprenticeship Levy is a tax on large employers to fund apprenticeship programs.

As an employer, you must ensure all PAYE and HMRC liabilities are paid in full, whether from a UK or overseas bank account. Cover any bank charges or exchange-rate differences so HMRC receives the exact amount due. Always use the correct employer reference to ensure payments are properly allocated and to avoid penalties or interest.

5. Payroll Payments & HMRC Compliance

United Kingdom Payroll Compliance

Top Skills in Demand in UK

There is no statutory requirement for a probation period in the UK. The market practice of probation in the UK is from 3 months to 6 months, depending upon the business and the employment agreement.

Probation in UK

The termination has to be based on one of the following four causes:

In the United Kingdom, the notice period for the termination is determined by the number of years of service of the employee.

Notice Period

Termination in UK

In the United Kingdom, employees are eligible for severance pay if they are terminated due to redundancy. It is determined by the employee's age and the number of weeks they have worked for the organization.

Severance Pay in UK

The employer determines whether they need a full-time employee or a consultant/ contractor. It is dependent on the short-term and long-term goals of the business.

A full-time employee is eligible for various benefits, such as:

Employees vs Independent Contractors in UK

A Global PEO in the UK allows global companies to employ employees and contractors in the UK without establishing a local company. Under Tarmack Global PEO/EOR services, you can source and onboard talent in the UK within a few days. We will manage the end-to-end employment lifecycle, such as compliant contracts, payroll, taxes, benefits, and continued HR support.</a>

Global PEO in UK

Start Hiring Today

An Employer of Record is a legal third-party employer of your workforce in the UK. It helps foreign or multinational business organisations to hire in India without establishing a local legal structure. They handle all statutory, legal, and compliance liabilities, like employment contracts, onboarding, payroll, taxes, social-security contributions, and labour-law compliance.

What is an Employer of Record (EOR) in the UK?

EOR prices are transparent with Tarmack. For employees in the UK, the service fee begins at US $199 per employee per month. In the case of contractors, it begins at US $39 per contractor per month. If you are employing multiple employees and contractors, please contact us for a proper cost estimate.

What is the cost of an employer of record in the UK?

Frequently Asked Questions

The United Kingdom is the 6th largest economy in the world. It has many economic opportunities and a very high standard of living. Since Brexit, some employers might need help navigating the hiring process. In such circumstances, engaging with an Employer of Record (EOR) services is crucial.

Employer of Record (EOR) United Kingdom (UK): Hire, Manage, and Pay Talent Seamlessly

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