Hiring a UK employee from the Netherlands: what Dutch companies need to know

Dutch payroll and UK payroll are cousins (loonheffing and PAYE both deduct at source), so the mechanics will feel familiar. The differences are in the on-costs, the allowances that don't exist, and the post-Brexit paperwork. Here's the practical version for Dutch founders, finance and HR teams.

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The five differences that surprise Dutch employers

• No vakantiegeld. The UK has no statutory 8% holiday allowance. Holiday pay is simply normal pay while the employee takes their 5.6 weeks' statutory leave. UK offers are quoted as one annual gross figure, which makes comparison with Dutch packages misleading unless you adjust.
• Employer costs are built differently. UK employer NI of 15% above £5,000/year plus a 3% minimum pension replaces the Dutch employer premiums (such as the WW and WIA premiums and the Zvw employer levy), which are capped at a maximum premium wage while UK employer NI isn't. Which costs more depends on the salary, so compare at yours.
• PAYE reporting is real-time. Like the loonaangifte but stricter on timing: the RTI submission is due on or before every payday, not monthly in arrears.
• Freedom of movement is gone. Post-Brexit you must verify every UK hire's right to work; moving a Dutch employee over usually needs a visa, often a sponsored one, unless they already have UK immigration status. Hiring someone already UK-based is the straightforward path.
• No 30%-ruling equivalent. The UK has no blanket expat tax facility like the Dutch 30% ruling, so don't build one into your comp model for a UK hire.

Your three routes, and the one most Dutch companies miss

However you hire, UK payroll runs one of three ways: your own UK PAYE scheme (an employer abroad can register one without a UK entity), an NI-only scheme in your company's name (no UK entity needed, because you stay the direct employer), or an Employer of Record (a third party employs them for you, at a premium: see the Employer of Record cost comparison). The NI-only route is the one most Dutch companies have never heard of, 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 four quick questions to find yours.

Secondments and social security

For temporary postings from the Netherlands, the UK to EU Trade and Cooperation Agreement's social-security protocol can keep a seconded employee in the Dutch system for up to 2 years, with a certificate of coverage (also called a PDA1) from the Dutch social security authority, which changes what the UK payroll must deduct.

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.

Common questions

Does a Dutch company need a UK company to employ someone in the UK?

Not to run UK payroll. The company can employ the person itself, either through an NI-only scheme registered in the company's own name or by running UK PAYE in its own name. When someone works in the UK for an employer based in the EU and UK National Insurance is due, it is due on both sides, the employee's and the employer's, so the scheme is an NI-only scheme in the employer's name and not a DPNI or DCNI. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts.

Does a Dutch company pay UK employer's National Insurance?

Usually, yes. An employer based in the EU can owe it as well, when the employee works in the UK and UK National Insurance is due. Under the UK and EU Trade and Cooperation Agreement, an employer based outside the UK pays these contributions just as if it were based here. For most employees, UK employer's National Insurance is 15% of pay above £5,000 a year. It is the employer's cost, not the employee's.

How does the employee pay income tax on an NI-only scheme?

This scheme doesn't take your employee's income tax off their pay. They pay their income tax through their own Self Assessment or, if they'd rather, through a tax-only scheme in their name.

What if we send an existing employee from the Netherlands to the UK?

Someone working in the UK for an employer in the EU usually pays UK National Insurance, unless they have a certificate of coverage (an A1) from that country. GOV.UK describes the certificate as being for someone coming to work temporarily in the UK for up to two years, employed in an EU country by an EU employer who normally works there. If your employee already has one, there's no National Insurance scheme to register and no fee for one.

How soon can a Dutch company pay its UK employee?

We'd allow four to eight weeks for HMRC to set the scheme up, and that's our own estimate, not a figure from HMRC. Nothing goes to HMRC until the engagement is signed and our identity checks are done, so our four to eight weeks starts then, not today. The scheme should be registered before the first payday. If pay starts before the scheme is in place, payroll still runs every payday and is reported to HMRC late once the scheme exists.

Working across one hour

Amsterdam is one hour ahead of the UK, effectively the same working day. Approvals, queries and calls all fit without planning, and we reply within one UK business day either way.

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, so please get specific advice before acting.