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 lower. UK employer NI of 15% above £5,000/year plus a 3% minimum pension generally lands below the Dutch employer stack of premiums (WW, WIA, ZVW and pension scheme contributions). The same salary costs you less to provide in the UK.
- 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 needs a sponsored visa. 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.
No UK entity? You usually don't need one. A Dutch BV with no UK presence can employ UK staff directly, without a UK company. The usual route for an EU employer is an NI-only scheme rather than a DPNI, because an EU employer is liable for employer's National Insurance as well as the employee's, and an NI-only scheme is set up in the company's name. Income tax is then handled separately. We confirm the right scheme with HMRC before anything is set up. No UK Ltd needed just to run payroll.
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 (needs a UK entity), a direct payment scheme (a DPNI or an NI-only scheme, which are different things and we confirm which applies) (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 cost comparison). The DPNI 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 three 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 (with an A1 certificate) for a period, which changes what the UK payroll must deduct. We confirm the position as part of setup so contributions land in the right country from payday one.
UK payroll quick facts
| Item | The UK position (2026/27) |
|---|---|
| Currency & pay cycle | GBP; monthly is the norm (weekly possible) |
| Income tax & NI | Deducted at source under PAYE; reported to HMRC in real time (RTI) on or before each payday |
| Employer National Insurance | 15% on pay above £5,000/year, the main on-cost to budget |
| Workplace pension | Auto-enrolment: minimum 3% employer / 8% total on qualifying earnings |
| Paid holiday | 5.6 weeks statutory (can include public holidays) |
| Payslips | An itemised payslip is a legal requirement every pay period |
| Paying HMRC | Monthly, by the 22nd (electronic) |
Estimate the all-in cost of a UK hire with our free employer-cost calculator, or see what a UK employee really costs.
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.
Hiring in the UK from the Netherlands?
We confirm the right scheme with HMRC, set it up, and run your UK payroll end to end, with support that works across time zones. Replies within one UK business day.
Get a fixed quoteThis 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.