Hiring a UK employee from Ireland: what Irish companies need to know

Of all the cross-border hires, Ireland to the UK is the closest fit — same language, both run PAYE, and Irish citizens already have the right to work under the Common Travel Area. The systems are close cousins, not twins, and the differences are where mistakes happen. Here's the practical version for Irish founders, HR and accountants.

The five differences that surprise Irish employers

• PAYE looks familiar — the names underneath don't. The UK deducts income tax and National Insurance (NI) each payday; there's no USC and no PRSI. UK NI splits into employee NI (8% on earnings in the main band, 2% above) and employer NI, rather than Ireland's single PRSI classes.
• Employer cost is lower than Irish employer PRSI. The UK employer pays NI of 15% on pay above £5,000/year — higher headline rate than Irish employer PRSI, but applied differently, and there's no equivalent of a separate national training levy. Add a 3% minimum pension and the all-in on-cost is modest.
• Irish citizens don't need a visa — but you still record the check. Under the Common Travel Area, Irish citizens have an automatic right to work in the UK. You still run and retain a right-to-work check for every hire; for non-Irish staff you'll verify British citizenship, settled status or a visa.
• Auto-enrolment already exists and is mandatory. The UK's workplace-pension auto-enrolment (minimum 3% employer / 8% total on qualifying earnings) has been running for over a decade — it's established and enforced, not the newer scheme Irish employers are still bedding in.
• Holiday and tax codes differ in the detail. 5.6 weeks' statutory paid holiday (which can include UK public holidays — and the UK and Irish bank-holiday calendars don't match). UK tax codes and the cumulative PAYE basis also work differently from Irish revenue payroll notifications (RPNs).

Your three routes — and the one most Irish companies miss

However you hire, UK payroll runs one of three ways: your own UK PAYE scheme (needs a UK entity), a DPNI / NI-only scheme (no UK entity needed — you stay the direct employer), or an Employer of Record (a third party employs them for you, at a premium). The DPNI route is the one most Irish companies overlook — and it is usually the leanest way to hire one to ten UK staff without incorporating. Compare the three routes side by side, or answer three questions to find yours.

Cross-border staff and social security

Ireland and the UK have a long-standing bilateral social-security arrangement that sits alongside the EU rules, so a worker moving between the two is generally covered in one system at a time. If you're moving an existing Irish employee to the UK rather than hiring locally, it determines whether PRSI or UK NI applies — we confirm the position as part of setup so contributions land in the right country from payday one.

UK payroll quick facts

Estimate the all-in cost of a UK hire with our free employer-cost calculator, or see what a UK employee really costs.

Working in the same time zone

The easiest part of all: Ireland and the UK share a time zone, so approvals, queries and calls fit naturally inside the same working day. We reply within one UK business day, and your employee's payslips, RTI filings and pension submissions all run on UK statutory deadlines without you tracking them.

This guide is general information, not tax, legal or immigration advice, and reflects our understanding of the rules as at June 2026. Your circumstances may differ — please get specific advice before acting.