UK Employer of Record Services
Payroll & Tax in the UK
A beginner’s guide to understanding payroll in the UK
Employer of Record UK Services
Download our full UK Employment Guide
Find out all about employing in the UK
How we can help
Our fully-compliant services as a payroll provider in the UK ensures your employees are paid on time, every time.
Whatever the territory or region, you need to attract and retain the best talent. But different countries and different cultures mean different employee expectations.
Payroll is key for any business; paying the correct UK salary to your business’s employees is vital. Using Agility EOR means that your employees are paid on time, every time, when they are working in the UK.
As part of our employer of record (EOR) solution, we offer managed payroll services for your employees, taking care of all payments and remittances to comply with UK payroll requirements.
Agility EOR offers the following payroll services in the UK:
- Salaries paid per month, in local currency
- Electronic payslips
- Statutory filing completed by us
- End of year reporting
Pay your staff once a month
Salaries in the UK are paid once per month, and in 12 equal instalments. There is no requirement to pay a 12 or 13th month and it’s neither customary to do so in the UK.
Discretionary bonuses
Bonuses are generally defined as discretionary, and therefore not required to be placed in the contract of employment.
National minimum wage
Employees must be paid at least the national minimum wage. The minimum hourly rates vary depending on age and status and are regularly increased. This includes overseas workers working in the UK for short periods (e.g. spending the summer holidays in the UK), and workers employed here who are temporarily working abroad (e.g. spending the summer holidays overseas).
UK Employee Benefits
We understand that attracting and retaining the best talent is vital for any business. Here at Agility EOR we always go the extra mile for our clients and employees. We provide both statutory and enhanced employee benefit packages, from medical and dental packages through to share options and equity stakes.
UK Statutory Leave
- Holiday Entitlement
- Maternity Leave
- Paternity Leave
- Parental Leave
- Sick Leave and Pay
what to expect
How to calculate UK Tax
The individual income tax ranges from 0% to 45%. Income tax is calculated according to progressive rates:
| Gross Annual Income | Tax Rate % |
|---|---|
| Up to £12,570 | 0% |
| £12,571 - £50,270 | 20% |
| £50,270 - £150,000 | 40% |
Employers contributions in the UK comprise of National Insurance contributions and a mandatory workplace pension.
- Employer National Insurance (Social Security) - 13.8%
- Workplace Pension - 3.00%
Employers may be required to pay an additional 0.5% Apprenticeship Levy, if they meet certain criteria.
Wondering if expanding
in the UK is right for you?
Read on or speak to a member of our team now
learn more
We are UK EOR experts
We have extensive experience helping businesses expand their workforce in the UK. Take a look at our areas of expertise to find out more:
Learn more about how you can attract and retain staff in the UK with both statutory and enhanced employee benefits
Wondering what it’s like to live and work in the UK? We’ve got you covered in our extensive guide, including the do’s and don’ts
Enhance your understanding of what’s included with Statutory Leave in in the UK
Unsure about what’s required when employing staff in the UK? Find out about UK Work Permits and Visas here
We take care of all payroll, hr and legal processing with our fully-manged EOR service in the UK.
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
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Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an employer of record company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!