Payroll Outsourcing in The United Kingdom (UK)
UK Payroll Service
No matter where you need it, our team of local experts at GlobalPEO will manage all of your foreign payroll operations. We get it; coordinating payroll is challenging enough on its own, and can become a logistical nightmare once multiple languages, rules, and regulations are involved.
We are proud to streamline the experience to guarantee compliance and make your global expansion into China a breeze.
Learn how the UK’s laws and regulations surrounding taxes will impact your hiring and payroll processes.
Depending on the size of your business and your specific needs, GlobalPEO offers a variety of payroll solutions to make sure you’re covered with full compliance, no matter what.
In order to set up payroll services in the UK, you will either need to set up a subsidiary of your own, or work with an International Payroll company like us here at GlobalPEO.
When setting up an employment contract in a foreign country, there are unique rules and regulations you must follow to ensure full compliance. Learn more about the specific terms that are required for all contracts in the United Kingdom.
United Kingdom Payroll Outsourcing Benefits
United Kingdom's Taxation Laws & Regulations
It is the responsibility of the employer to deduct personal income tax and the national insurance contribution from their employees earnings through a nationally mandated system called Pay As You Earn, or PAYE.
The standard employer’s offering to the UK’s National Insurance Contribution is around 13.8% in addition to total compensation to their employees. The NIC is a national social security program where both employers and employees contribute to the public health care system. It is the employer’s duty to automatically deduct the employee’s contribution.
Companies employing workers in the UK also have the option to provide additional benefits, including medical, vision, dental, and life insurance for all full-time employees. 75% of UK companies provide these benefits to their employees.
Payroll Options in the UK
Depending on the size of your company, you can choose between a two primary payroll options to find one that best fits your needs.
Option 1 – Set Up Your Own Subsidiary
Large companies will sometimes decide to handle their foreign employee payroll process on their own. In order to do this, you will be required to set up a subsidiary, register your business in China, and have a deep understanding of the country’s taxation, withholdings, benefits, and other local payroll conditions.
Option 2 – Work With an International PEO
When you work with GlobalPEO, our Payroll solutions make things easy by handling all of the administrative and HR duties with the employee. This frees up your business and foreign employees to focus all of your communications on the work itself.
How To Set Up Payroll In the United Kingdom
When setting up your employment contracts with foreign workers, be sure to state the official terms for the notice period and any potential severance the employee would be entitled to receive.
Every employee you hire in the UK will need to have a P45 form that comes directly from their previous employer. In the event that they do not have a previous employer, you will have to complete the UK’s HMRC checklist to make sure you find the correct tax code.
Entitlement & Termination Terms For UK Payroll
Why Choose GlobalPEO?
Global expansion is a great step for your business – and now it’s easier than ever. Setting up your own entity in each country where you wish to operate can be expensive, complicated, and requires deep knowledge of the specific rules and regulations. Let GlobalPEO take care of everything. From International PEO & EOR, Global Payroll and International Recruiting we deliver our exceptional services at an affordable price.