Specialist Employer of Record in
the United Kingdom
&
Channel Islands
We handle contracts, payroll, benefits, and compliance, so you can hire people confidently and quickly.
No delays. No stress.
Just outstanding support from day one.
OUR EOR PORTAL
Human support you rely on, with the tech you need you grow
We pair hands on service with smart tech. Our EOR platform makes it easy to manage new hires, keep payroll running smoothly, and stay on top of day-to-day admin.
Stay on track with onboarding
Run payroll and view reports
Handle time off and contract updates
WHY EOR UK?
EOR UK are specialists in helping companies expand into the UK and the Channel Islands.
EOR UK are the only dedicated Employer of Record service provider in the UK and Channel Island, our expertise is solely concentrated on helping international businesses establish hire in the United Kingdom and Channel Islands. Our deep understanding of the local market ensures that your company’s expansion is in expert hands.
Ready to unlock EOR UK for your team?
EMPLOYMENT COSTS
What it costs to employ someone in the UK
Understanding the full cost of employment in the UK is essential for effective workforce planning. Below is a breakdown of employer obligations and employee deductions for the 2026/27 tax year.
Employer National Insurance
UK employers are required to pay secondary Class 1 National Insurance Contributions (NICs) on employee earnings. The employer NIC rate is 15% on all earnings above the secondary threshold of £5,000 per year. This is a direct cost to the business, payable in addition to the employee’s salary. Eligible employers may claim Employment Allowance, which reduces their NIC liability by up to £10,500 per year.
Employee deductions
Four statutory deductions are applied to each payslip before the employee receives their net pay:
- Income tax is charged in bands: 20% on earnings from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% above that. The personal allowance of £12,570 is tax-free, though it tapers for earners above £100,000.
- Employee National Insurance is 8% on earnings between £12,570 and £50,270 per year, and 2% on earnings above that threshold.
- Workplace pension contributions are typically 5% of qualifying earnings (between £6,240 and £50,270) under auto-enrolment. Employees may opt to contribute a higher percentage.
- Student loan repayments may also apply depending on the employee’s plan type and earnings threshold.
WORKED EXAMPLE
Hiring someone on a salary of £60,000
YOUR TOTAL COST
£69,575
Salary + 15% employer NICs + 3% employer pension
EMPLOYEE TAKE-HOME
≈ £43,150
After income tax, employee NICs, and pension contributions
The exact take-home figure depends on the employee’s tax code, pension scheme, student loan status, and any other personal circumstances.
We calculate all payroll deductions each month, files returns with HMRC, manage the workplace pension, and issue every payslip. Clients receive a single monthly invoice covering salary costs, statutory contributions, and the management fee.
THE EOR PROCESS IN THE UK
What's involved when you employ someone in the UK
Employing someone in the UK requires compliance with a number of legal and regulatory obligations. Some must be fulfilled before the employee’s first day; others apply on an ongoing basis throughout the employment.
Under UK law, employers are required to provide a written statement of employment particulars on or before the employee’s first day. This must cover pay, working hours, holiday entitlement, notice periods, and place of work. Additional particulars, including pension details and disciplinary procedures, must be provided within two months. All statements must comply with Part 1 of the Employment Rights Act 1996.
Upon receiving the role details, EOR UK prepares a fully compliant contract the same day, ensuring the new employee has all required documentation before their start date.
The employee must be registered with HMRC under the PAYE system prior to their first pay date. Agility manages this registration, obtains the employer PAYE reference, and applies the correct tax code. Each pay period, income tax and National Insurance are calculated and deducted, and a Full Payment Submission (FPS) is filed with HMRC in real time through the RTI system. Agility also enrols the employee into a qualifying workplace pension under auto-enrolment and administers the ongoing contributions.
EOR UK currently employs individuals in the UK across a wide range of sectors, including software development, AI, engineering, healthcare, retail, and the charity sector. The onboarding process remains consistent regardless of industry. Contract terms and benefits packages are tailored to reflect sector-specific requirements.
24 HOUR ONBOARDING
Onboard in as little as
24 hours with EOR UK
At Employer of Record UK, we understand that time is of the essence when expanding your business. That’s why we’ve designed an efficient and streamlined process to onboard new employees in as little as 24 hours
An easy to use platform
Manage all of your Employer of Record needs for your UK and Channel Islands hires in our easy to use platform.
Stress free onboarding
Get your UK and Channel Islands hires set up quickly and confidently. We handle contracts, compliance checks, and all local HR tasks.
Accurate monthly payroll
We pay your UK and Channel Islands employees on time, every time. We manage all payroll so you stay compliant and in control.
Cost-effective hiring
Avoid the overhead of setting up your own entity. Our EOR model keeps costs predictable, with no surprise admin fees.
Avoid entity set-up
Hire in the UK and Channel Islands without registering a local company. We act as the legal employer, so you can onboard talent easily.
Local compliance
From contracts and statutory benefits to right-to-work checks, we handle the details that keep you compliant.
SINGLE POINT OF CONTACT
We believe great relationships start with great service
That’s why you’ll always work with the same dedicated UK expert who takes the time to understand your business and your team. With one point of contact, you get faster answers, clear communication, and support that feels personal. We’re here to make hiring and employing people in the UK and Channel Islands simple, compliant, and genuinely human.
EOR VS. YOUR OWN ENTITY
Do you need your own UK company, or can you use an EOR?
To employ someone in the UK, there are two options. You can set up your own UK limited company, as a subsidiary or branch, or you can use an employer of record.
Setting up your own UK company
4 – 12 weeks
£3 – 5k
SET-UP TIME
SET-UP COST
You will need to register a limited company with Companies House and appoint at least one UK-resident director. Register with HMRC for Corporation Tax, employer PAYE, and VAT (if applicable).
Open a UK business bank account and establish a registered office address. From start to finish, this typically takes 4 to 12 weeks depending on how quickly the bank account can be opened. Bank account approval is usually the bottleneck.
- Companies House confirmation statement and annual accounts
- Corporation Tax returns to HMRC
- Running payroll and employment law compliance
- UK accountant and legal adviser required
- Ongoing compliance costs of several thousand pounds per year
Using an employer of record
Days
€0
SET-UP TIME
SET-UP COST
EOR UK employs the individual through its own UK entity. No company registration is required, no Companies House filing is needed, no bank account needs to be opened, and no annual returns need managing. Agility issues the employment contract, registers the employee with HMRC, runs payroll, and handles all ongoing HR and compliance obligations.
- No UK entity required
- Contract issued within hours
- Payroll, tax, and compliance all handled
- No accountant or legal adviser needed on your side
- Single monthly invoice covers everything
When does each option make sense?
Use an EOR when…
You are hiring a small number of employees in the UK and do not want the cost or administrative burden of establishing and maintaining a local company. It is also well suited when you need someone to start quickly and cannot wait several weeks or months for an entity to be fully operational.
Set up your own entity when…
You are building a larger permanent team in the UK. You may also need a UK company for commercial reasons, such as holding contracts with UK customers, applying for UK government grants, or establishing a physical presence in the market.
No fixed threshold determines when one option becomes more suitable than the other. It depends on your plans for the UK. We’re happy to talk it through with you either way.
EMPLOYEE ENTITLEMENTS
The UK has a comprehensive framework of statutory employee protections. Non-compliance can result in employment tribunal claims. Below is a summary of the key entitlements all employers must be aware of.
20
DAYS/YR
Annual leave
Every full-time employee is entitled to a minimum of 5.6 weeks’ paid annual leave per year, which equates to 28 days. In practice, most UK employers structure this as 20 days of annual leave plus the 8 bank holidays in England and Wales. Part-time workers receive a proportional amount based on the number of days they work each week. Leave accrues from the first day of employment and must be taken as actual time off. It cannot be replaced with a payment in lieu while the employee remains employed.
8
DAYS/YR
Public holidays
England and Wales have 8 public (bank) holidays per year. These are provided to all Agility-employed staff in addition to the 20 days of annual leave, bringing the total paid time off to 28 days. If a public holiday falls on a weekend, the following working day is observed as a substitute. Scotland and Northern Ireland have a slightly different public holiday schedule, and Agility adjusts entitlements accordingly where applicable.
26
WEEKS
Sick leave
From April 2026, employees are entitled to Statutory Sick Pay (SSP) from the first day of sickness absence. The previous requirement to wait three days before SSP became payable has been removed. SSP is paid at the lower of £123.25 per week or 80% of the employee’s average weekly earnings. The lower earnings limit has also been abolished, meaning all employees now qualify regardless of income level. SSP is payable for up to 28 weeks in any single period of sickness or across linked periods separated by 56 days or fewer.
52
WEEKS
Maternity leave
Eligible employees are entitled to up to 52 weeks of maternity leave, consisting of 26 weeks of Ordinary Maternity Leave followed by 26 weeks of Additional Maternity Leave. Statutory Maternity Pay (SMP) is payable for up to 39 weeks: the first 6 weeks at 90% of average weekly earnings, followed by 33 weeks at £194.32 per week or 90% of average weekly earnings, whichever is lower. The remaining 13 weeks are unpaid. Employers have no legal obligation to top up SMP, although some choose to do so. The employee must provide at least 15 weeks’ notice before the expected week of childbirth.
2
WEEKS
Paternity leave
Eligible employees may take either 1 or 2 weeks of paternity leave. From April 2026, paternity leave is a day-one right, meaning no minimum length of service is required. Statutory Paternity Pay (SPP) is £194.32 per week or 90% of average weekly earnings, whichever is lower. However, SPP still requires 26 weeks of continuous service to qualify. Paternity leave can now also be taken after a period of Shared Parental Leave.
50
WEEKS EACH
Shared Parental Leave
Eligible parents may share up to 50 weeks of leave and up to 37 weeks of Statutory Shared Parental Pay (ShPP) between them. ShPP is paid at £194.32 per week or 90% of average weekly earnings, whichever is lower. The amount of leave available depends on when the mother or primary adopter ends their maternity or adoption leave. Shared Parental Leave offers greater flexibility, as it can be taken in discontinuous blocks rather than as a single continuous period, subject to employer agreement.
18
WEEKS PER CHILD
Unpaid parental leave
Each parent is entitled to up to 18 weeks of unpaid parental leave per child, available until the child turns 18. A maximum of 4 weeks may be taken per child in any single year, unless the employer agrees otherwise. From April 2026, this is a day-one right and no minimum length of service is required.
We manage all of this on your behalf
EOR UK tracks every employee's leave balances, ensures payslips reflect the correct entitlements, and flags any upcoming obligations. When an employee goes on maternity leave, Agility manages the documentation, ensures compliance with notice periods, and handles return-to-work procedures. There is no requirement for clients to have their own knowledge of UK employment law.
OUR SERVICES
Employer of Record UK - specialists in UK EOR services
If you want to expand your business quickly in the UK without an entity, then you need the specialized services of a UK Employer of Record based in the UK.
Employer of Record
We know that every business has unique needs and requirements. Our flexible approach allows us to adapt to your specific situation, providing rapid onboarding without compromising on quality or compliance.
Payroll & Tax
Don't let payroll headaches slow down your business. We offer comprehensive payroll services for UK-based employees, tailored to meet the needs of your business. We handle all the details, so you can focus on growing your company.
HR Expertise
Our team of professionals is well-versed in the complexities of UK employment law, regulations, and compliance requirements. We stay up-to-date on all legislative changes, ensuring your business remains fully compliant with local laws while avoiding potential legal pitfalls.
Employee Benefits
We will provide and manage competitive employee benefits that are in line with the UK labor market standards.
EMPLOYING IN THE UK
I want to learn more about . in the UK & Channel Islands
Our CIPD qualified HR professionals possess extensive knowledge of UK employment law and stay up-to-date with the latest changes and updates.
Our team offers expert guidance on all aspects of employment law, including contracts, employee rights, benefits, and dispute resolution. We’re here to answer any questions and provide the support you need throughout the entire employment lifecycle.
About us
Why Choose Employer of Record UK?
EOR UK specailize in providing UK Employer of Record services. It’s why we’re the #1 EOR for your UK and Channel Island employees.
Our professional experience comes from working at senior management level in the UK HR and Payroll sectors. You won’t find a team more experience or qualified to look after your employees.
Ready to hire in the UK and Channel Islands?
Take the first step to expanding your business in the UK and Channel Islands with our easy to use UK EOR services.
Get in touch to see how we can support your UK and Channel Islands growth plans.
BLOGS
Latest help and advice
Take a look at our latest advice when it comes to employing in the UK and Channel Islands.
GET IN TOUCH
Start employing your UK and Channel Islands workers today
Schedule a consultation today to find out more about how we can help you to hire in the UK and Channel Islands