Payroll Service for Employees in the UK

We handle UK payroll for international companies – even without their own branch or permanent establishment in the United Kingdom.

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Hire Employees in the UK Without a Permanent Establishment and Run UK Payroll?

Would you like to hire an employee in the United Kingdom without your own permanent establishment, but require UK payroll services?

IPS supports you in hiring and paying employees in England in compliance with local regulations – even without a UK branch or permanent establishment.

There are two ways to hire employees in England without a permanent establishment:

1. Employer of Record (England)

Your new team member is employed directly by us and assigned to work for you full-time. This model is also known as employee leasing in England or an Umbrella Company in the UK.

✓ Fast start in the United Kingdom

✓ No own branch or permanent establishment required

✓ Payroll and administration outsourced

Employer of Record

2. Direct Employment in the UK

Direct employment with your company, with payroll processed in accordance with UK law by registering your company as a foreign employer.

✓ Employee hired directly by your company

✓ UK payroll through IPS

✓ Employment possible without your own UK branch

1. Employer of Record (England)

Your new team member is employed directly by us and assigned to work for you full-time. This model is also known as employee leasing in England or an Umbrella Company in the UK.

✓ Fast start in the United Kingdom

✓ No own branch or permanent establishment required

✓ Payroll and administration outsourced

Employer of Record

2. Direct Employment in the UK

Direct employment with your company, with payroll processed in accordance with UK law by registering your company as a foreign employer.

✓ Employee hired directly by your company

✓ UK payroll through IPS

✓ Employment possible without your own UK branch

IPS is your global payroll solution for successful and fast
international expansion without your own branch or permanent establishment.

Full-Time Remote Work from England – Information on Employment and Payroll in England

With IPS as your international payroll partner, you can ensure a successful market entry. We help you employ your new employees in England correctly and in compliance with local regulations.

Below, you will find an overview of the UK payroll system and important conditions for payroll in the UK.

Employer Payroll Costs in England

Employer costs depend on the employee’s individual circumstances and typically range between 18% and 22%, as Employer National Insurance as well as statutory workplace pension contributions must be taken into account.

If you do not have a branch in England, you need a service such as IPS to correctly calculate and pay these social benefits in accordance with UK law.

International Payroll in England

With IPS international payroll services in England, you can ensure that your employee is paid in compliance with UK law.

Sickness

If an employee in England becomes ill, they are entitled to Statutory Sick Pay (SSP) from the first day of incapacity for work.

The employee is entitled to Statutory Sick Pay (SSP). This is a fixed amount per week that is paid to employees for 28 weeks.

This is financed and covered by the employer. A medical certificate, known as a “fit note”, only needs to be provided after 7 days.

Annual Leave and Public Holidays

In England, every employee is entitled to 28 working days of paid annual leave. The 8 national public holidays are normally included in this total.

If a public holiday falls on a weekend, the following Monday is observed as a “substitute day”.

Public holidays in England:

→ 1 January – New Year’s Day

→ Good Friday

→ Easter Monday – in England, Wales and Northern Ireland, but not Scotland

→ First Monday in May – Early May Bank Holiday

→ Last Monday in May – Spring Bank Holiday

→ Last Monday in August – Summer Bank Holiday

→ 25 December – Christmas Day

→ 26 December – Boxing Day

Probationary Period and Termination

In England, the length of a probationary period can vary, but it is generally around six months, as statutory protection against dismissal applies after this period.

During the first six months of employment, an employee in England can be dismissed without a valid reason. After six months, a valid reason is required to terminate the employment relationship.

The statutory notice periods are:

→ At least one week for employment lasting between one month and 2 years

→ One week’s notice for each year of employment for employment lasting between 2 and 12 years

→ 12 weeks’ notice for employment lasting 12 years or more

A longer notice period may be agreed in the employment contract.

International Payroll in England and UK Employment Law

International payroll in England requires compliance with UK employment law. As your international payroll service provider in England, we ensure that you have the necessary information and can align your payroll processes with UK requirements.

Employ and Pay Employees in England in Compliance with Local Law

Employing your own employees in the United Kingdom involves legal and administrative requirements. With our international payroll solutions, we support you with compliant employment and UK payroll processing.

Your benefits with IPS:

✓ UK payroll in accordance with local requirements

✓ Support with payroll and administration in the UK

✓ Employ employees without your own permanent establishment

✓ Employer of Record as an alternative employment solution

✓ Direct employment through your company as a foreign employer

✓ Fast and flexible expansion into the United Kingdom

Get a free, no-obligation consultation now and successfully employ staff in England.

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