Hire in United Kingdom
with Confidence

Our workforce compliance guide to the United Kingdom covers everything you need to compliantly hire, onboard, manage and pay workers in the UK. 

United Kingdom
Capital City
London
Local Time
Currency
Pound Sterling (GBP)
Official Language(s)
English
Population
66.9 Million (2022)
GDP
2708 Billion USD (2020)
GDP Growth rate
7.5% (2021)

To help you navigate the UK’s employment, tax, and compliance laws, Worksuite acts as your global employment partner, making it easy to hire employees or independent contractors—all without needing to set up your business entity.

– Quickly find, hire, and onboard talent in the UK without setting up your entity
– Prevent expensive legal, contractual, or tax mistakes in the UK
– Manage contracts, payroll, and global tax forms all in one Worksuite

We simplify the process of hiring in the UK by acting as the Employer of Record (EOR) or Global Agent of Record (AOR) on your behalf, handling everything from contracts, onboarding, documentation, payroll, benefits, and workforce management. Reduce your time-to-hire by 90%, slash your overheads, and remain fully compliant. Hiring workers in UK has never been so easy.

Worksuite Insights

Ease of Hiring Employees Normal
Ease of Hiring Independent Contractors Hard
Average Time-to-Hire Up to 4 Weeks
Labor Laws Complex
Regulatory Risk High Risk

Employment stats

  • Employee Dismissal Periods
  • Popular Contractor Agreements
  • Popular Employment Contracts
  • Popular Work Permit Types
  • Payroll frequency
  • Cost of Employment
  • Tax Rates
  • Retirement Age (Average)
  • Unemployment Rate

compared to other countries in the region

Country

Ease of Hiring Employees

Ease of Hiring Independent Contractors

Average Time-to-Hire

Labor Laws

Regulatory Risk

Ease of Hiring Employees

Normal

Ease of Hiring Independent Contractors

Hard

Average Time-to-Hire

Up to 4 Weeks

Labor Laws

Complex

Regulatory Risk

High Risk

3 Highest countries

Country

Ease of Hiring Employees

Very Easy

Ease of Hiring Independent Contractors

Very Easy

Average Time-to-Hire

Up to 4 Weeks

Labor Laws

Complex

Regulatory Risk

Low Risk

Country

Ease of Hiring Employees

Very Easy

Ease of Hiring Independent Contractors

Very Easy

Average Time-to-Hire

Up to 4 Weeks

Labor Laws

Complex

Regulatory Risk

Low Risk

Country

Ease of Hiring Employees

Very Easy

Ease of Hiring Independent Contractors

Very Easy

Average Time-to-Hire

Up to 4 Weeks

Labor Laws

Complex

Regulatory Risk

Low Risk

3 Lowest countries

Country

Ease of Hiring Employees

Very Easy

Ease of Hiring Independent Contractors

Very Easy

Average Time-to-Hire

Up to 4 Weeks

Labor Laws

Complex

Regulatory Risk

Low Risk

Country

Ease of Hiring Employees

Very Easy

Ease of Hiring Independent Contractors

Very Easy

Average Time-to-Hire

Up to 4 Weeks

Labor Laws

Complex

Regulatory Risk

Low Risk

Country

Ease of Hiring Employees

Very Easy

Ease of Hiring Independent Contractors

Very Easy

Average Time-to-Hire

Up to 4 Weeks

Labor Laws

Complex

Regulatory Risk

Low Risk

Minimum wage (per month)

3 Highest countries

702
poland
Poland
0
germany
Germany
0
united-kingdom
United Kingdom

Other countries

0
croatia
Croatia
0
czech-republic
Czechia
0
slovakia
Slovakia
0
austria
Austria

3 Lowest countries

0
sweden
Sweden
0
united-kingdom
United Kingdom
0
germany
Germany

Employee vs. Independent Contractor Classication

Any business hiring in the UK should understand the important legal distinction between who classifies as an independent contractor and who can be hired as an employee. Fines or penalties may be issued to businesses hiring contractors under the guise of employment. 

Understanding the distinctions between employees and independent contractors (or self-employed workers) is critical to compliantly engaging workers in the UK. It is essential to work with a partner like Worksuite to ensure you put in place an engagement framework that accurately classifies freelancers as independent contractors for you and lets you know when freelance talent must be engaged as a payrolled contractor or employed directly. 

In the UK there are multiple sources of employment law that cover both employees and independent contractors. UK employment law may also vary slightly between its four geographical zones of Great Britain (England, Scotland, Wales) and Northern Ireland.

Factors

Employee

Independent Contractor

Employment Laws

In Great Britain (England, Scotland, Wales), this is governed by the Westminster Government in England through the Department for Work and Pension (DWP), along with various employment laws within Acts of Parliament (such as the Employment Rights Act 1996, the National Minimum Wage Act 1998, and the Working Time Regulations 1998), regulations, common law, and case law. In Northern Ireland, employment law is governed by the Northern Ireland Assembly, although there is significant alignment with British employment law.

Independent contractors are not defined in UK law, and so there is a reliance upon case law (precedence).

Hiring Practice

The individual must submit their CV (or resumé) to the employer, and some employers will also ask the individual to provide references. Once a decision has been made, the employer must deliver a formal job offer in writing to the individual. Once the individual has been offered and has accepted the job, the employer must acquire the individual’s personal information such as date of birth, proof of right to work in the UK, national identification (e.g. passport), proof of address, national insurance number, and most recent P45 (see below)

Contractors can be hired directly or via an intermediary, such as a staffing agency or umbrella company. Contractors may be found via word-of-mouth, jobs boards, social networks, industry bodies, or other forums. Although the hiring practices vary, the contractor may be asked to provide a CV, portfolio, and references, and possibly sign an NDA.

The key contractor operating models are: 

  • Sole trader
  • Personal Services Company (LLC or PLC)
Tax Filing Documents

Employees receive a P60 form from their employer at the end of each tax year (6 April to 5 April), and a P45 form upon termination of employment. 

Employees are not required to submit any tax forms in relation to their income earned via employment. However, they will need to include some details from these forms as part of any tax self-assessments for additional self-employed work.

Tax codes and national insurance (NI) numbers are issued by Her Majesty’s Revenue and Customs (HMRC)

Contractors who do not operate via an intermediary must file their own tax returns by registering for HMRC’s Self-Assessment process. They may also need to register for Value Added Tax (VAT)

Payer Tax Filing Requirements

Employers must obtain new employees’ most recent P45 form. If the employee does not have a P45 form available, employers can use HMRC’s New Starter Checklist form.

Employers are required to withhold employees’ tax and national insurance at time of payment to the employee. This occurs through the PAYE payroll scheme. Employers report end-of-year expenses paid to each employee via a P11D form or using HMRC’s PAYE Online service.

Employers must give all employees a P60 form at the end of the tax year. Most businesses generate these forms using payroll software. Alternatively, HMRC’s Basic PAYE Tools can be used to generate the forms.

Hiring companies do not withhold any of the contractor’s payment for tax purposes

Other Tax Filing Requirements

Upon termination of employment, the employer must issue the employee with a P45 form, which shows how much tax the employee has paid in the current tax year (6 April to 5 April). Employees must issue a P45 by law.

Changes to the IR35 tax law (April 2021) place more responsibilities on hiring companies to determine the contractor’s employment status before hiring them. This can be done using HMRC’s Check Employment Status for Tax (CEST) tool.

Remuneration

Employees are paid on an hourly, weekly, or monthly basis.

Contractors operating as a business typically submit an invoice on a monthly basis. Contractors operating without a business (i.e., as a sole-trader) may be paid via any preferred method, and often require a payment receipt.

The hiring company and contractor may also negotiate a payment structure, including any up-front payment, partial payments, and a final payment upon completion of the work.

Worker’s Rights

Employment rights include National Minimum Wage (NMW), Statutory Sick Pay, Statutory Redundancy Pay, maternity/paternity pay and leave, parental pay and leave, notice periods, flexible working, emergency time off work, rest breaks and nights off, maximum hours per week (unless the employee opts out), automatic enrolment in a pension scheme, request for flexible working, minimum notice period of dismissal, statutory redundancy pay.

Contractors do not have standard employees’ rights. However, they have rights regarding health and safety, and protection against unfair discrimination.

Benefits

The employer pays all employee benefits.

Contractors’ benefits are governed by the content of the contract.

When Paid

Employees are usually paid in arrears on or before the last day of the month for which payment is due

Contractors send an invoice (or other form of payment request), and typically require payment within 14 days or 28 days of submission, unless otherwise stipulated in the contract. Contractors are not paid by payroll in most cases.

Employee

Employment Laws

In Great Britain (England, Scotland, Wales), this is governed by the Westminster Government in England through the Department for Work and Pension (DWP), along with various employment laws within Acts of Parliament (such as the Employment Rights Act 1996, the National Minimum Wage Act 1998, and the Working Time Regulations 1998), regulations, common law, and case law. In Northern Ireland, employment law is governed by the Northern Ireland Assembly, although there is significant alignment with British employment law.

Hiring Practice

The individual must submit their CV (or resumé) to the employer, and some employers will also ask the individual to provide references. Once a decision has been made, the employer must deliver a formal job offer in writing to the individual. Once the individual has been offered and has accepted the job, the employer must acquire the individual’s personal information such as date of birth, proof of right to work in the UK, national identification (e.g. passport), proof of address, national insurance number, and most recent P45 (see below)

Tax Filing Documents

Employees receive a P60 form from their employer at the end of each tax year (6 April to 5 April), and a P45 form upon termination of employment. 

Employees are not required to submit any tax forms in relation to their income earned via employment. However, they will need to include some details from these forms as part of any tax self-assessments for additional self-employed work.

Tax codes and national insurance (NI) numbers are issued by Her Majesty’s Revenue and Customs (HMRC)

Payer Tax Filing Requirements

Employers must obtain new employees’ most recent P45 form. If the employee does not have a P45 form available, employers can use HMRC’s New Starter Checklist form.

Employers are required to withhold employees’ tax and national insurance at time of payment to the employee. This occurs through the PAYE payroll scheme. Employers report end-of-year expenses paid to each employee via a P11D form or using HMRC’s PAYE Online service.

Employers must give all employees a P60 form at the end of the tax year. Most businesses generate these forms using payroll software. Alternatively, HMRC’s Basic PAYE Tools can be used to generate the forms.

Other Tax Filing Requirements

Upon termination of employment, the employer must issue the employee with a P45 form, which shows how much tax the employee has paid in the current tax year (6 April to 5 April). Employees must issue a P45 by law.

Remuneration

Employees are paid on an hourly, weekly, or monthly basis.

Worker’s Rights

Employment rights include National Minimum Wage (NMW), Statutory Sick Pay, Statutory Redundancy Pay, maternity/paternity pay and leave, parental pay and leave, notice periods, flexible working, emergency time off work, rest breaks and nights off, maximum hours per week (unless the employee opts out), automatic enrolment in a pension scheme, request for flexible working, minimum notice period of dismissal, statutory redundancy pay.

Benefits

The employer pays all employee benefits.

When Paid

Employees are usually paid in arrears on or before the last day of the month for which payment is due

Independent Contractor

Employment Laws

Independent contractors are not defined in UK law, and so there is a reliance upon case law (precedence).

Hiring Practice

Contractors can be hired directly or via an intermediary, such as a staffing agency or umbrella company. Contractors may be found via word-of-mouth, jobs boards, social networks, industry bodies, or other forums. Although the hiring practices vary, the contractor may be asked to provide a CV, portfolio, and references, and possibly sign an NDA.

The key contractor operating models are: 

  • Sole trader
  • Personal Services Company (LLC or PLC)
Tax Filing Documents

Contractors who do not operate via an intermediary must file their own tax returns by registering for HMRC’s Self-Assessment process. They may also need to register for Value Added Tax (VAT)

Payer Tax Filing Requirements

Hiring companies do not withhold any of the contractor’s payment for tax purposes

Other Tax Filing Requirements

Changes to the IR35 tax law (April 2021) place more responsibilities on hiring companies to determine the contractor’s employment status before hiring them. This can be done using HMRC’s Check Employment Status for Tax (CEST) tool.

Remuneration

Contractors operating as a business typically submit an invoice on a monthly basis. Contractors operating without a business (i.e., as a sole-trader) may be paid via any preferred method, and often require a payment receipt.

The hiring company and contractor may also negotiate a payment structure, including any up-front payment, partial payments, and a final payment upon completion of the work.

Worker’s Rights

Contractors do not have standard employees’ rights. However, they have rights regarding health and safety, and protection against unfair discrimination.

Benefits

Contractors’ benefits are governed by the content of the contract.

When Paid

Contractors send an invoice (or other form of payment request), and typically require payment within 14 days or 28 days of submission, unless otherwise stipulated in the contract. Contractors are not paid by payroll in most cases.

Hiring Contractors in the United Kingdom

Self-employment as an independent contractor is a popular income model for many individuals. The Covid pandemic has prompted an even greater increase in UK individuals working as self-employed independent contractors. 

UK labor law distinguishes between three types of employment status classification: employee, independent contractor (or self-employed), and worker. Depending on the individual’s classification, this can have significant implications for companies looking to hire contractors in the UK. For the hiring company, engaging with independent contractors may be legally and financially risky, especially given the possibility of an independent contractor becoming re-classified as an employee of the hiring company.

This risk has been heightened since the UK updated the Off-Payroll Working (IR35) rules in 2021. Hiring companies should ensure their contract templates fully align with IR35, so that the individual’s status as a contractor is clear.

If the real substance of the company-contractor relationship proves to effectively be an employment relationship, the hiring company may suffer legal and financial penalties (including payroll taxes). It is therefore important to leverage an employment service partner like Worksuite when hiring in the UK, in order to ensure that independent contractors fall under the correct working relationship with your business.

1. Who is an independent contractor?

In the UK, an individual is classified as an independent contractor or an employee based on the reality of the relationship between the individual and the hiring company. There is no single body of law in the UK that specifies this distinction. Instead, multiple factors are considered. Individuals are generally considered to be independent contractors if they:

  • Are described as a contractor in the contract itself.
  • Can be (or are expected to be) dismissed once the contracted work is complete.
  • Can refuse to perform a task (unless that task is part of their contract).
  • Are paid for a specific project or task, rather than on a recurring basis.
  • Are not entitled to a minimum amount of work or a minimum amount of pay.
  • Are not listed on the hiring company’s normal payroll.
  • Are subject to relatively little control by the hiring company, such as when, where, and how they complete their tasks.
  • Are not performing a core business function or operation.
  • Have a right to substitute another contractor to perform the work (such as a subcontractor or the individual’s own employee).
  • Have a right to work for another client or competitor at the same time (so long as this is not prohibited by the contract or an NDA).
  • Are not entitled to benefits (sick leave, maternity/paternity leave, etc).
  • Do not have their income tax withheld from their payment; they file their own tax returns.

Workers: In addition to “employee” and “independent contractor”, UK employment law also has a third category: “worker”. Individuals are generally considered to be workers if:

  • There is a contract between the individual and the hiring party.
  • The contract does not permit the individual, or the individual agrees not to, substitute another person for completing the work. 
  • Both the individual and the hiring company are not in the same professional field, nor are they operating a business.

The “worker” category only exists within employment law; it does not affect tax law. There are only two categories under UK tax law: employed and self-employed.

Sole traders and PSCs: In the UK, independent contractors typically either operate as a self-employed “sole trader” or they create a “personal services company” (PSC) such as a limited liability partnership (LLP) or public limited company (PLC). For companies looking to hire an independent contractor, hiring an individual who is working as a “sole trader” can be risky, as it is possible the relationship may become an employer-employee relationship, which places additional financial and legal obligations on the employer. Instead, it can be less risky to work with an individual who is operating as a PSC.

2. IR35

IR35 rules (named after an Inland Revenue (IR) press release from 1999) were introduced to prevent contractors from working “off payroll” as a way of avoiding tax and national insurance contributions. IR35 tries to ensure that when contractors are effectively working in the same manner as employees, those contractors pay the same national insurance and income tax contributions as employees.

IR35 rules apply when a contractor provides services to a client via an ‘intermediary’, such as their own company, a partnership, or a personal service company (PSC). The IR35 rules were originally introduced in April 2000, but changes in April 2021 placed greater responsibility on medium and large-sized companies (along with public sector organisations) to assess the contractor’s employment status. 

There are several aspects of IR35 that are worth noting:

‘Inside’ vs ‘Outside’ IR35: A contractor can be ‘inside’ or ‘outside’ IR35. Being ‘inside’ IR35 means the contractor is working within the remit of the powers of IR35. In short, the contractor is subject to the same income tax and national insurance contributions as if they were an employee. If a contractor is assessed as being ‘inside’ IR35, they may also be able to benefit from employee rights. Being ‘outside’ IR35 means the IR35 rules do not apply. The contractor can pay themselves a salary, plus further dividends which are exempt from national insurance contributions.

A contractor who is ‘inside’ IR35 will typically:

  • Not have their own professional business identity or branding
  • Be paid on a regular schedule, not on a per-project or task basis
  • Receive employee benefits (such as sick pay)
  • Use the client’s equipment, rather than their own 
  • Work at the client’s site, rather than their premises
  • Work for a single client for a long period, rather than multiple clients in parallel
  • Personally carry out and deliver the contracted work/tasks, rather than substituting another person (e.g., a subcontractor) to perform the work
  • Be closely supervised by the client, with little control over when or how the work is performed
  • Not expend any personal costs to fix or correct faulty or subpar work

Check Employment Status for Tax (CEST): The CEST tool provided by HMRC allows a hiring company (or a contractor themself) to perform an employment status assessment. The tool can be used to understand (a) if the IR35 rules apply to a contract, and (b) if a particular piece of work is classed as employment or self-employment. The tool runs through a series of questions, whereby each response affects the subsequent questions that are asked. The questions can include (as of April 2022):

  • Has the worker ever sent a substitute to do this work?
  • Does your organisation have the right to move the worker from the task they originally agreed to do?
  • Does your organisation have the right to decide how the work is done?
  • Does your organisation have the right to decide the worker’s working hours?
  • Will the worker have to buy equipment before your organisation pays them?
  • How will the worker be paid for this work?
  • If your organisation was not happy with the work, would the worker have to put it right?
  • Will you provide the worker with paid-for corporate benefits?

IR35 rules apply to an individual contract. This means that a contractor may undertake some contracts that are ‘inside’ IR35 and some contracts that are ‘outside’ IR35. 

3. Paying contractors

Payment to independent contractors is flexible and can be determined by both parties within the contract. There are no laws in the UK that require a specific payment method or time of delivery, although the typical window for paying a contractor is 14 days or 28 days from the date of issuance of the invoice. When working with independent contractors, you’ll need to have an established process for paying them correctly and on time within the contract. 

 

4. Contracting models

There are four main types of contracting model for working with independent contractors in the UK.

Direct engagement

Under this model, the hiring company engages directly with the independent contractor and establishes a direct contract for the provision of services. The hiring company then pays the independent contractor directly, in accordance with the terms of the contract.

Staffing agency

Here, the hiring company engages with a staffing agency, which in turn supplies one of its own contractors to deliver the contracted services. The hiring company pays the staffing agency directly, in accordance with the terms of the contract. The contract is therefore between the hiring company and the staffing agency, while the agency pays the independent contractor through a separate contractual arrangement. 

Umbrella company

Due to the IR35 rules (see above), UK contractors often work through an umbrella company. This turns a ‘self-employed’ individual into a legal ‘employee’ of the umbrella company and therefore avoids the complications of the IR35 rules. The contractual relationship is between the umbrella company and the client, with the umbrella company running payroll and administration for the contractor. The umbrella company invoices the client directly while paying the contractor via PAYE as a standard employee. Umbrella companies levy a fee on the contractor to cover their costs.

Hiring partner

The hiring company can also work with a hiring partner who helps them vet potential contractors, set up contracts, ensure the contractor is properly classified, onboard and manage contractors, and pay contractors. 

Tax

In the UK, independent contractors must pay tax on all income above £12,570 (for the 2022/23 tax year). Independent contractors manage their own tax payments to HMRC, typically via the Self-Assessment process. Depending on their level of self-employed income, independent contractors might need to register to pay Value Added Tax (VAT). Unlike employees, independent contractors do not need to pay Class 1 National Insurance Contributions (NICs). However, they do need to pay Class 2 and Class 4 NICs.

It is important to note that an individual’s employment status (as employee, contractor, or worker) does not necessarily determine their tax status. In the UK, these determinations are made by an employment tribunal and a tax tribunal (or HMRC), which are separate. One decision may influence the other, but this is not guaranteed.

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Employment In United Kingdom

Types of Employment Contracts

Contract Requirements

It is mandatory to provide new employees with a written statement outlining the basic terms of employment which must include:

Compensation (in GBP)
Working hours
Annual leave
Sick pay
Severance pay
Notice period

However, it is common for employees and employers to negotiate a formal employment contract. Although most employment agreements are concluded indefinitely, fixed-term agreements are also possible.

Working Hours

Employers may request their employees to work a standard 48-hour week. Daily working time is flexible and varies depending on business needs but a nine to five working day is typical for most employees in the UK.

After six hours of continuous work, employees must take a 20-minute break.

Overtime

All work above the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements etc. When an employee is requested to work overtime or work on holidays, employers may request this of employees in writing.

All overtime hours in excess of 48 hours a week are paid at an overtime compensation rate; this rate is stipulated in the employment contract/collective agreements. The hourly overtime rate cannot fall below the national minimum wage.

Remuneration

Bonuses

Probation Period

UK labour law does not regulate the length of probation periods. Generally, employers and employees usually agree on a probation period between three and six months.

Termination and Severance

The termination process varies according to the employment agreement and collective agreement in place and is based on the type of contract and reason for termination. Dismissals can be deemed fair or unfair depending on the reasoning and conduct of the termination.

Notice Period

In the United Kingdom, notice periods are outlined with the employment contract or the statutory minimum, whichever is longer.

For redundancy the statutory notice period is at least one week’s notice if an employee has been employed for between one month and 2 years and one week’s notice for each year of service between 2 years and 12 years of employment.

In the case of gross misconduct, a dismissal without notice is possible.

Employers can pay in lieu of notice.

Severance pay

Severance pay is only required in the case of redundancy. The amount of severance is dependent on the age of the employee, if they have served at least two years of service as follows:

  • Half a week’s pay for each full year for employees under the age of 22
  • One week’s pay for each full year for employees between the ages of 22 to 41 years of age
  • One and half weeks’ pay for each full year for employees over the age of 41
  • Length of service is capped at 20 years
  • Weekly pay is capped at 540 GBP

Leave

The annual leave entitlement is 28 days of paid leave per year for full-time employees. Bank holidays are included in the annual leave entitlement.

Employers may offer additional leave at their discretion; this must be outlined in the employment contract.

Sick day

Employees can receive up to 28 weeks of paid sick leave; this is compensated at 98.85 GBP per week Statutory Sick Pay (SSP) as a minimum, this is not payable for the first three days of any sickness absence. Employers may compensation varies depending on the company’s sick pay scheme.

If the employees’ sick leave exceeds seven days, including weekends and bank holidays, the employee must provide a professional medical doctor certificate.

An employee may also be entitled to contractual sick pay (that is, pay during sick leave at a higher rate than SSP) if the employer offers this benefit.

Maternity leave

In the United Kingdom, female employees receive 52 weeks of statutory maternity leave, 26 weeks of ordinary leave, followed by 26 weeks of additional maternity leave.

An employee is not required to use the full 52 weeks of leave; however, the employee must take at least two weeks following the child’s birth; this may vary depending on the employee’s sector.

Mothers are compensated by Statutory Maternity Pay (SMP) for up to 39 weeks at the rate of 90.00% of the employees average weekly earnings for the first six weeks, and 151.97 GBP or 90.00% of the employees average weekly earnings, whichever is lower) for the following 33 weeks.

Paternity Leave

Employees are entitled to one to two weeks of paid paternity leave, which begins after the child’s birth. Employees receive Statutory Paternity Pay of 151.97 GBP, or 90.00% of the employee’s average weekly earnings, whichever is lower, per week of leave.

Parental Leave

Parents in the United Kingdom may be entitled to Shared Parental Leave (SPL) when adopting a child or following the birth of a child. Shared Parental Leave allows parents up to 50 weeks of leave they can share; 37 weeks of pay is possible. Employees must take leave within the first year of the child’s birth.

Other types of leave

Depending on the employment contract, an employee may be allowed additional leave, as approved between the employer and employee, for the following:

  • Bereavement leave: In the UK in the event of the death of an immediate family member, an employee is entitled to bereavement leave of up to three days (the employment contract will stipulate whether this is paid or unpaid leave).
  • Jury Service Leave: Employers to provide their full-time regularly employed employees, job-protected, unpaid leave for their duty as jurors or as a witness in a case, or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.  The court will provide a specific amount of payment and the employer can choose to provide any additional payment.
  • Public Duties Leave: Employees are entitled to a reasonable unpaid amount of time off to perform public duties, for example, if they are:
  • a magistrate (also known as a justice of the peace)
  • a school governor
  • a member of any statutory tribunal
  • a member of the managing or governing body of an educational establishment

Health Coverage & Insurance

Payroll & Taxes

Employers

Taxes

  • 19% Corporate Tax
  • 20% VAT

Social Security

16.8% of employee’s salary including:

  • 13.8% NIC (National Insurance Contributions) of weekly employee wages exceeding GBP 184 *
  • 3% Pension contribution

Employees

Taxes

Individual income tax rates

  • 0% Up to GBP 12,750
  • 20% Up to to GBP 50,270
  • 40% Up to GBP 150,000
  • 45% Over GBP 150,000

Social Security

17% to 19% of employee’s salary including

  • 12% NIC on weekly earnings between GBP 184 and GBP 967
  • 2% If weekly earnings are exceeding GBP 967
  • 5% 5% pension scheme

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Required Data

  • Name
  • Date of Birth
  • Residential Address
  • Telephone
  • NIP Number (NIP is a tax identification number)

Optional Data

Payment Processing for Employees

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