Remote’s guide to employing in

the United Kingdom
united-kingdom flag

Make employment in the United Kingdom easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in the United Kingdom, all in one easy-to-use platform.

  • Capital City

    London

  • Currency

    Pound sterling (£, GBP)

  • Languages

    English

  • Population size

    67,886,004

Services available in this country:
Employer of Record ProductContractor ManagementGlobal Payroll
United Kingdom

Facts & Stats

United Kingdom Map Illustration
  • Capital City

    London

  • Currency

    Pound sterling (£, GBP)

  • Languages

    English

  • Population size

    67,886,004

  • Ease of doing business

    Very easy

  • Cost of living index

    $$$$ (27 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    20%

  • GDP - real growth rate

    1.398% (2018 est.)

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK or U.K.) or Britain, is a sovereign country located off the north­western coast of the European mainland. The United Kingdom has the world's sixth-largest economy by nominal gross domestic product (GDP), and the ninth-largest by purchasing power parity (PPP). It has a high-income economy and a very high human development index rating, ranking 14th in the world.

Grow your team in United Kingdom with Remote

Employing in the United Kingdom requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. The complexity of employment regulations in the UK makes full compliance with employment laws a burdensome process.

Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.

Risks of misclassification

United Kingdom, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in United Kingdom may lead to fines and penalties for the offending company.

Employing in United Kingdom

People at work in the UK benefit from a minimum charter of employment rights, which are found in various Acts, Regulations, common law and equity. This includes the right to a minimum wage, paid holidays, break from work, limit to excessively long working hours, automatic enrolment in a basic occupational pension and provisions for leave.

The following are only guidelines in the broadest sense, and professional legal services are recommended when employing in the UK.

Minimum Wage

In the United Kingdom, the National Living Wage & National Minimum Wage depends on the age of the worker. From April 2024, the national minimum wages will be according to the following hourly rates:

  • National Living Wage (21 and over):

    £11.44

National Minimum Wage:

  • Aged 18 to 20:

    £8.60

  • Aged 16 to 17:

    £6.40

  • Apprentice:

    £6.40

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in the United Kingdom fast. The minimum onboarding time we need is only 2 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

6 Public holidays

Jan
Monday, January 1, 20241New Year's Day
Mar
Friday, March 29, 20242Good Friday
May
Monday, May 6, 20243Early May Bank Holiday
Monday, May 27, 20244Spring Bank Holiday
Dec
Wednesday, December 25, 20245Christmas Day
Thursday, December 26, 20246Boxing Day

Competitive benefits package in the United Kingdom

Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.

Our benefits packages in the United Kingdom are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Local market insights

  • In the United Kingdom, 90%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)

  • Although the country has a strong social system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times. Our plans also offer global coverage (excluding the US) to protect your employees when they are traveling outside their home country.

Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.

If you'd like specific information about our benefits packages in the UK, start onboarding your first employee with Remote today.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Taxes in United Kingdom

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in United Kingdom.

  • Minimum 4% - Pension Fund

  • 13.80%* - National Insurance Rate (*0 for weekly salary payments up to 758)

  • £60.32 - Employer Liability Insurance

  • 0.49%

    Monthly Apprentice Levy (recharged as a percentage of gross pay)

Types of leave

Full-time workers in the UK are entitled to 28 total working days of annual leave. These often include the 8 public/bank holidays which would otherwise be unpaid.

Employment termination

Termination process

Termination from the employer valid grounds with any fair reasons. There are five potentially fair reasons for dismissals::

  • Employee's capability or qualifications for performing work of the kind the employee was employed to do;

  • Employee conduct;

  • Employee redundancy;

  • Employee could not continue work in position without contravening statutory duty or restriction; or

  • Other substantial reason justifying dismissal

Notice period

Notice period depends on the length of the employment relationship and is different depending on if the notice is being given by the employer and the employee.

From the employer, the minimum notice periods are as follows:

  • For employment from 1 month to less than 2 years: 1 week

  • For employment from 2 years to less than 12 years: 1 week per year of employment

  • For employment of 12 years or more: 12 weeks


From the employee, the minimum notice period is 1 week where an employee has been employed for a month or more.


Probation periods

There is no legal stipulation for minimum and maximum probation periods. Employers can set probationary periods in the employment contract. It is typical for a probationary period to last no longer than six months, and three months where an employee is moving to a new post internally.

Fair Pricing in the United Kingdom

Employer of Record

Hire and pay your global team

Starting at US$599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app