Three ways to run UK payroll, what a UK hire really costs, and the employment rules to know, with the tools to work it out and a specialist to set it up.
The right route depends on whether you have a UK entity and whether you want to stay the legal employer. For the detail, read PAYE vs an Employer of Record, see how a direct payment scheme works with no UK entity, and check what an Employer of Record costs in the UK.
| Your own UK PAYE | Direct payment scheme (DPNI) or NI-only scheme | Employer of Record (EOR) | |
|---|---|---|---|
| Best for | You have (or will set up) a UK company or branch | No UK entity or place of business, but you want to stay the employer, our speciality | You need to start fast and don't want to be the legal employer |
| You stay the legal employer? | Yes | Yes | No, the EOR employs them |
| UK entity required? | Usually, though an overseas company can register voluntarily | No, though with a UK place of business you run PAYE instead, and if the employee works for a UK business, that business may have to run PAYE | No |
| Who pays HMRC? | You (via your PAYE scheme) | The employee on a DPNI, the employer on an NI-only scheme, and we run either | The EOR |
| Typical setup time | Longer, incorporate + register PAYE | Specialist setup (not online), typically 4 to 8 weeks on our own estimate | Fastest, days |
| Relative cost | Low ongoing, higher setup (entity) | Lean, payroll fee only, no entity | Highest, a premium per employee |
| Control of the relationship | Full | Full | Reduced, sits with the EOR |
Not sure which fits? Answer a few quick questions →
On top of salary, the employer usually pays into a workplace pension and, where it's due, employer's National Insurance. For the full breakdown of what a UK employee really costs, see the guide, or estimate the all-in cost here:
Employer NI is 15% on pay above £5,000/yr (2025/26 & 2026/27) where it's due. A UK entity or branch, an EU, EEA or Swiss employer on an NI-only scheme, or an EOR usually pays it; an employer elsewhere with no UK presence on a DPNI usually doesn't. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts. Employment Allowance (up to £10,500) can offset it for eligible employers. The pension is worked on qualifying earnings (£6,240 to £50,270 for 2026/27), the band the minimum contribution applies to. Estimate only. full calculators here.
Income Tax and National Insurance are deducted under PAYE and reported to HMRC in real time (an FPS on or before each payday).
Where it's due, the employer pays NI of 15% on earnings above £5,000/year, a real cost on top of salary. A UK entity or branch, an EU, EEA or Swiss employer on an NI-only scheme, or an EOR usually pays it; an employer elsewhere with no UK presence on a DPNI usually doesn't.
Most UK workers must be auto-enrolled into a workplace pension, with minimum employer contributions and statutory letters.
Every employee gets an itemised payslip each period, and you keep payroll records, all handled for you.
Pay must meet the National Minimum/Living Wage, and employees are entitled to paid holiday (5.6 weeks statutory).
PAYE and NIC are paid to HMRC monthly (by the 22nd, electronically), or quarterly if you're eligible; a DPNI pays quarterly. We tell you exactly what's due and when, you pay.
The same three routes, through your home lens, what changes coming from each market:
Tell us your situation and we'll tell you which scheme we expect to ask HMRC for and a fixed fee, no obligation.
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