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EOR UK
Employer of Record United Kingdom
Whether you’re hiring UK-based talent without opening a local entity, or a UK company expanding internationally, ThisWorks handles PAYE, National Insurance, employment contracts and ongoing compliance — so you can onboard compliantly in just a few days.
- Licensed Sponsor
- IR35 Compliant
- PAYE & NI Fully Managed
- Onboard in Days
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Capital
London
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Official language
English
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Currency
£ Pound Sterling (GBP)
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Working hours
35–40 hrs/week (48 hr max)
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Public holidays
8 (England/Wales), 10 (Scotland)
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Min. wage (NLW)
£12.21/hr (age 21+, Apr 2026)
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Min. paid leave
28 days statutory (incl. bank holidays)
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Tax year
6 April – 5 April
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Probation period
Typically 3–6 months
Sources: GOV.UK — PAYE for employers · GOV.UK — National Minimum Wage rates · GOV.UK — Working Time Regulations
“Many of our clients come to us because they want to hire in the UK but aren’t sure where to start. They quickly realise that setting up a company is only one piece of the puzzle — understanding payroll, employment law, pensions, or visa requirements can be much more challenging. Our job is to make that process straightforward. We handle the compliance side of things so our clients can focus on building their team and growing their business.”
— Zaka Ullah, UK Operations Lead at ThisWorks
What is an Employer of Record in the UK?
An Employer of Record (EOR) in the UK is a third-party organisation that legally employs workers on behalf of another business. The employee performs their work for your organisation, but the EOR acts as the official employer for legal and administrative purposes.
Using an EOR in the UK eliminates the need to establish a UK legal entity, register as an employer with HMRC, or manage local payroll compliance directly. The EOR becomes the legal employer under UK employment law, while you retain full day-to-day management and operational control.
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Employment contracts (written particulars)
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PAYE payroll administration
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National Insurance contributions
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Auto-enrolment pension
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Statutory Sick Pay (SSP)
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Statutory parental leave & pay
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HMRC reporting & compliance
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Employment law compliance
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Visa sponsorship support
💡 IR35 note: If your company engages UK contractors, IR35 off-payroll rules may apply. Hiring through an EOR eliminates IR35 risk entirely — the EOR is the legal employer, not the end client. Learn more below →
Why Use an EOR in the UK?
The UK is home to approximately 36.6 million workers and offers world-class talent across finance, technology and professional services. But becoming a compliant UK employer involves far more than simply finding the right candidate.
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Non-UK Companies
Hire UK talent without a local entity
Setting up a UK Ltd requires Companies House registration, PAYE registration with HMRC, auto-enrolment pension setup and employer liability insurance — before you can hire a single person. EOR onboarding takes days, not weeks.
- No UK Ltd incorporation required
- No HMRC PAYE registration needed
- No UK business bank account required
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UK Companies — Post-Brexit
Expand across Europe without local entities
Since Brexit, UK companies hiring in EU countries can no longer rely on regulatory alignment. Each country requires either a local entity or an EOR. ThisWorks covers Netherlands, Germany and South Africa — a single partner for your international team.
This is an underserved angle — a genuine differentiator for UK-based clients.
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IR35 Exposure
The clean alternative to contractor risk
Many companies engage UK workers as contractors before establishing a local entity — but IR35 rules mean this can create significant tax liability. An EOR provides a compliant, clean solution: the worker is employed through the EOR, removing classification risk entirely.
If HMRC identifies misclassification, it can demand backdated tax and NI contributions going back several years.
What is IR35 and how does an EOR help?
IR35 (also known as the off-payroll working rules) is UK tax legislation designed to determine whether a contractor is genuinely self-employed or should be treated as an employee for tax purposes. The rules prevent individuals from working in an employee-like environment while paying less tax than a regular employee.
IR35 typically applies when a contractor: works set hours in an ongoing role; provides services through a personal service company; and has a long-term, embedded relationship with one client.
When a role falls “inside IR35”, the tax treatment becomes equivalent to employment — and misclassification can result in backdated income tax, NI contributions and penalties. Hiring through an EOR removes this risk entirely. The EOR is the legal employer, not the end client.
“UK employment law is structured and evolves continuously, which makes compliance a real challenge for international employers. Our role is to remove that complexity so companies can hire in the UK with clarity, speed and compliance from day one.”
— Zaka Ullah, UK Operations Lead at ThisWorks
Benefits of Employer of Record UK Services
Faster than setting up a UK entity
Incorporating a UK Ltd is quick, but PAYE registration, pension setup, employer liability insurance and compliant employment documentation can add weeks. EOR onboarding typically completes in days.
PAYE & National Insurance fully managed
No need to register as a UK employer with HMRC. The EOR calculates, withholds and remits all PAYE income tax and National Insurance contributions on your behalf.
IR35 risk eliminated
The EOR is the legal employer of record — removing off-payroll working complexity for the end client. This is the cleanest solution for companies currently engaging UK contractors.
Employment Rights Bill compliance
UK employment law is undergoing significant reform in 2025. An experienced EOR monitors legislative changes and updates employment practices automatically, keeping your workforce compliant.
GOV.UK — Employment Rights Bill →
Predictable employment costs
A fixed monthly fee per employee replaces the unpredictable legal, accounting and compliance costs of running a local entity. Clear budgeting from day one.
Pan-European capability
ThisWorks also covers Netherlands, Germany and South Africa — one partner for UK and multi-country hiring, without establishing separate entities in each market.
Ready to hire in the UK?
Our UK specialists can get your first employee onboarded in just a few working days — no UK entity required.
Hiring Employees in the UK — What You Need to Know
UK employment law is highly regulated and structured, which makes it complex for international employers unfamiliar with local requirements. Below is an overview of the key areas companies need to navigate. See our UK hiring guide for more.
Employment Contracts
All new starters must receive a Written Statement of Particulars on or before their first day of employment (Employment Rights Act 1996, as amended April 2020). This serves as the primary employment contract and must include:
- Salary and payment structure
- Working hours and workplace location
- Holiday entitlement and notice period
- Job title, responsibilities and sick pay provisions
Working Hours & Leave
Standard working week: 35–40 hours. The Working Time Regulations 1998 set a 48-hour weekly limit (averaged over 17 weeks) — but unlike many European countries, employees can opt out of this limit in writing.
- Statutory minimum: 28 days paid leave/year for full-time workers (5.6 weeks, pro-rated for part-time)
- Employers can choose to include bank holidays within the 28-day entitlement
- Statutory Sick Pay (SSP): £116.75/week (2025/26) from day 4 of illness — employer funded
PAYE & National Insurance
Unlike many EU countries, the UK does not operate a multi-layered social insurance system. Employer obligations are structured around PAYE income tax, National Insurance contributions and mandatory pension auto-enrolment.
The UK’s PAYE (Pay As You Earn) system requires employers to calculate and withhold income tax from employees’ salaries and remit it to HMRC monthly. The employer carries full administrative responsibility for payroll compliance.
Employee Class 1 NI Rates 2026/27:
| Weekly Earnings | NI Rate (Employee — Class 1) |
|---|---|
| £0 – £242 | 0% |
| £242.01 – £967 | 8% |
| Over £967 | 2% |
UK Payroll Contributions Overview:
| Contribution | Employer share | Employee share | Notes |
|---|---|---|---|
| Income Tax (PAYE) | Withholds & remits; does not contribute | 100% of liability (0–45%) | Progressive bands; paid to HMRC monthly via PAYE |
| National Insurance (Class 1) | 15% above £5,000/yr | 8% on salary £12,570–£50,270 | Core UK social contribution; secondary threshold £96/week |
| Workplace Pension (auto-enrolment) | Min. 3% qualifying earnings | Min. 5% qualifying earnings | Eligible: aged 22+, earning £10,000+/yr. Common oversight for non-UK employers. |
| Apprenticeship Levy | 0.5% of annual payroll above £3m | — | Larger employers only |
GOV.UK — PAYE for employers → · GOV.UK — National Insurance →
Auto-enrolment pensions
Workplace pension auto-enrolment is mandatory for all eligible workers. This is one of the most commonly missed obligations for non-UK employers entering the market.
- Applies to workers aged 22+ earning over £10,000/year
- Employer minimum contribution: 3% of qualifying earnings
- Employee minimum contribution: 5% of qualifying earnings
- Must be enrolled from the first day of employment
Employee protections & dismissal
UK employment law provides significant statutory protections, and employers must ensure any dismissal is both lawful and procedurally fair.
- Unfair dismissal: currently after 2 years’ continuous employment (Employment Rights Bill proposes day-one rights — upcoming change)
- Statutory redundancy pay: scales with age and length of service
- Discrimination protections: from day one under the Equality Act 2010
- Notice periods: min. 1 week after 1 month’s service; +1 week per year of service (up to 12 weeks)
EOR vs Setting Up a UK Ltd Company
UK Ltd incorporation via Companies House can be completed in hours — but that is only the beginning. Ongoing obligations include PAYE registration, auto-enrolment pension setup, employer liability insurance, annual accounts, corporation tax returns and Companies House confirmation statements. These steps frequently delay UK market entry by weeks.
To register a UK entity, you will need: a unique company name, a UK registered address, shareholder structure and SIC code. After incorporation, you must register for corporation tax and PAYE with HMRC, open a UK business bank account, arrange NI contributions and pension enrolment, create UK-compliant employment documentation and establish statutory reporting. All of this before a single employee can be hired.
| Employer of Record (via ThisWorks) | UK Ltd Company | |
|---|---|---|
| Setup time | ✓Employees hired in days | Days for incorporation; weeks for employment setup |
| Cost | ✓Low upfront; predictable monthly fee per employee | High upfront legal, accounting and compliance costs |
| Effort / burden | ✓Low — payroll, PAYE, pension and compliance outsourced | High — all admin and legal obligations managed by your team |
| PAYE, pension & employer insurance | ✓Included in EOR setup | Required from you — registration, setup and ongoing management |
| IR35 exposure | ✓None — EOR is the legal employer | Full exposure — end client carries classification risk |
| Flexibility | ✓High — scale up or down easily | Difficult — tied to ongoing entity obligations |
| Control | Reduced — legal employer is EOR | Full legal and operational control |
| Risk | ✓Low — compliance managed by EOR | High — your team responsible for correct setup and ongoing obligations |
| Long-term suitability | ✓Best for market testing, remote teams, project-based hiring | Best for established, long-term UK operations |
Many companies start with an EOR to test the UK market and transition to a UK Ltd once established. If you decide to take that next step, ThisWorks can also support entity setup. Read about entity setup services →
Cost of Using an Employer of Record in the UK
EOR pricing in the UK varies by provider and scope of service, but the key advantage over a local entity is financial predictability. Rather than unpredictable legal, accounting and compliance overheads, you pay a structured monthly fee per employee — making budgeting straightforward from day one.
The cost of using an EOR in the UK depends on several factors:
- Employee salary level — some providers adjust fees based on salary band
- Benefits package — pension contributions above statutory minimums or additional allowances
- Level of support required — additional services such as visa sponsorship may affect pricing
Percentage of Salary
Some providers charge a percentage of the employee’s gross salary. Can appear flexible at lower salary levels but costs increase proportionally with senior hires — less predictable for growing teams.
Fixed monthly fee per employee
A fixed fee per employee per month, regardless of salary. Valued for its predictability — you always know your employment costs. Fee varies by provider and scope of services.
Why Choose ThisWorks for EOR in the UK
Expanding into the UK requires navigating a structured employment system and staying ahead of ongoing regulatory changes. ThisWorks helps international businesses manage these complexities, allowing your company to focus on growth while we take care of employment administration
Fast onboarding
Once the necessary documentation is received, UK employee onboarding is typically completed within a few working days — giving you speed without compromising compliance.
UK compliance expertise
Our specialists have in-depth knowledge of UK payroll, PAYE administration, workplace pension obligations, statutory leave entitlements and evolving employment legislation, including the Employment Rights Bill 2025.
Licensed Sponsor for visa support
Only employers holding a valid UK Sponsor Licence can sponsor eligible workers for UK visas. ThisWorks holds the necessary licence, enabling us to support international recruitment and immigration processes where required.
Transparent pricing
We believe in clear pricing and straightforward processes. With a predictable monthly EOR fee you can plan your UK expansion with full control over your employment budget.
Beyond the UK
ThisWorks also provides EOR services in the Netherlands, Germany and South Africa — one partner for your full international hiring footprint, without establishing separate entities.
Employment Rights Bill ready
UK employment law is undergoing significant reform. Our team monitors legislative changes and updates your employment practices automatically, keeping you compliant as the law evolves.
Immigration support with a licensed sponsor
If your UK hire requires visa sponsorship, only employers holding a valid Sponsor Licence can sponsor eligible workers for UK visas. ThisWorks holds the necessary licence, enabling us to support international recruitment and immigration processes where required.
Our licence status can be independently verified through the UK government’s Register of Worker and Temporary Worker licensed sponsors →
Licence type: Worker & Temporary Worker
Verification: GOV.UK licensed sponsors register
UK EOR FAQs
What is an Employer of Record in the UK?
An Employer of Record in the UK is the organisation that legally employs workers on behalf of another organisation, managing payroll, compliance and employment administration. The employee performs their work for your business, but the EOR is the legal employer under UK employment law.
Do I need to set up a UK Ltd company to hire UK employees?
No. If you use an Employer of Record service in the UK, there is no need to establish a UK legal entity. The EOR acts as the legal employer on your behalf, handling PAYE registration, National Insurance, pension obligations and employment contracts.
How does an EOR handle PAYE and National Insurance in the UK?
The EOR takes full responsibility for UK payroll compliance. This includes preparing monthly payroll, deducting income tax and employee National Insurance contributions through the PAYE system, and ensuring all payments are reported correctly to HMRC (His Majesty’s Revenue and Customs).
What is IR35 and how does an EOR help?
IR35 is UK tax legislation designed to assess whether contractors should be treated as employees for tax purposes. If a company engages a contractor who works like an employee, the business faces significant compliance and tax risk. By employing workers through an EOR, the employment relationship is clearly defined — the EOR is the legal employer — removing IR35 exposure for the end client entirely.
How long does it take to hire through an EOR in the UK?
In most cases, onboarding can be completed within a few working days once all required documentation is received and approved. For employees requiring visa sponsorship, additional time should be allowed for the Home Office immigration process.
Can I hire contractors in the UK instead of using an EOR?
Yes, companies can still engage independent contractors in the UK. However, contractor arrangements carry IR35 classification risks — particularly for long-term or full-time roles. For ongoing employment relationships, an EOR provides a more compliant and lower-risk solution. If HMRC identifies misclassification, it can demand backdated tax and National Insurance contributions going back several years.
What are the statutory employment rights in the UK?
UK law provides minimum legal protections covering minimum pay, working time limits (48 hours/week, with opt-out), 28 days paid leave for full-time workers, Statutory Sick Pay, unfair dismissal protection (currently after 2 years — proposed to become day-one rights under the Employment Rights Bill), and discrimination protections from day one under the Equality Act 2010.
Can a UK company use an EOR to hire employees in Europe?
Yes. Since Brexit, UK companies hiring employees in EU countries can no longer rely on the regulatory alignment that previously existed. An EOR provides the solution. ThisWorks supports EOR hiring in the Netherlands, Germany and South Africa — enabling UK businesses to expand internationally without establishing local entities in each country.
Ready to hire with a UK EOR?
Hiring in the UK doesn’t have to mean setting up a local entity, building payroll infrastructure or navigating complex employment legislation on your own. Whether you are hiring your first UK-based employee or expanding an international team, our specialists can support a smooth, compliant onboarding process in just a few days.
Zaka Ullah
UK Operations Lead at ThisWorks
“UK employment law is structured and evolves continuously, which makes compliance a real challenge for international employers. Our role is to remove that complexity so companies can hire in the UK with clarity, speed and compliance from day one.”
