Hiring guide · EMEA
How to hire in United Kingdom
To hire in the United Kingdom you need a PAYE scheme with HMRC, pension auto-enrolment into a qualifying scheme, and real-time information filing every pay run. Employer National Insurance is 15% above the secondary threshold. An Employer of Record operates all of it on your behalf.
- Currency
- GBP
- Payroll cycle
- Monthly
- Employer cost
- ~18–20%
- Notice
- 1 week to 12 weeks by service
The talent market in United Kingdom
The UK is the usual first European hire for US companies: English-speaking, common-law contracts, and deep fintech, AI and enterprise software talent across London, Manchester, Edinburgh and Bristol. Its time zone bridges a full European working day and most of the US East Coast morning.
Setting up is not the hard part — running it is. Real-time information filing, statutory sick, maternity and redundancy pay, and unfair dismissal protection after two years' service all need correct handling from the first pay run.
Salary benchmarks in United Kingdom
Indicative annual gross base salary in GBP for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | GBP 55,000 – 75,000 |
| Senior software engineer | GBP 75,000 – 105,000 |
| Account executive (SaaS) | GBP 55,000 – 75,000 base + variable |
| Customer support specialist | GBP 28,000 – 38,000 |
Employment rules and payroll in United Kingdom
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
37.5 hours typical; 48-hour weekly cap unless opted out
Probation
3–6 months by contract
Notice period
Statutory from one week, rising with service; 1–3 months by contract
Paid leave
5.6 weeks (28 days) including bank holidays
Public holidays
8 in England and Wales, 9 in Scotland, 10 in Northern Ireland
Payroll cycle
Monthly, with RTI submitted on or before payment
Employer contributions
Employer NI 15% above the secondary threshold, plus 3% minimum pension
Contractor, EOR employee or your own entity?
Three ways to engage someone in United Kingdom. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in United Kingdom
IR35 shifts the status determination to the end client for medium and large businesses. If the working relationship looks like employment — control, substitution not permitted, mutuality of obligation — HMRC can pursue the fee-payer for the PAYE and NI that should have been deducted, plus interest and penalties.
Work permits and right to work
Statutory right-to-work checks must be completed and evidenced before the first day, either through an ID verification service or the Home Office online check. Sponsoring a Skilled Worker visa requires a sponsor licence held by the entity directing the work, which an EOR generally cannot provide — plan sponsorship around your own UK entity.
Hire in United Kingdom without an entity
Our Employer of Record page for United Kingdom covers statutory cost, compliance obligations and onboarding timelines in detail, through licensed in-country partners.
EOR in United Kingdom- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in United Kingdom: frequently asked questions
Can we employ someone in the UK without a UK company?
Yes. A UK Employer of Record employs the person under its own PAYE scheme and becomes the legal employer, while you keep day-to-day direction of the work. Most UK hires are on payroll within three to seven working days.
What is the total employer cost above UK salary?
Roughly 18–20% above gross: employer National Insurance at 15% of earnings above the secondary threshold, plus a minimum 3% pension contribution on qualifying earnings. Private medical and life assurance are common but not mandatory.
Does IR35 apply if we use an Employer of Record?
No. IR35 governs contractors working through their own intermediary. Under an EOR the person is a genuine employee on PAYE from day one, so the status question does not arise and the deemed-employment risk disappears.
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Get the United Kingdom Hiring Cost Guide
A country brief covering fully loaded employment cost in GBP, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for United Kingdom.