Short answer: You can hire in the UK without setting up a UK company by using an employer of record (EOR). The EOR becomes the legal employer, runs UK payroll, pays employer National Insurance, enrols the worker in a pension and handles right to work checks, while your team directs the day-to-day work. If the person is genuinely self-employed, you can instead engage them as a contractor, but misclassifying an employee as a contractor creates tax and legal risk.
Your three options at a glance
| Employer of record | Independent contractor | Set up a UK entity | |
|---|---|---|---|
| Who is the legal employer | The EOR | Nobody (self-employed) | Your UK company |
| Best for | Full-time staff, long-term roles | Genuine project or freelance work | Teams of several hires with long-term UK plans |
| Employment rights apply | Yes | No (if correctly classified) | Yes |
| Payroll, NI, pension | Handled by EOR | Contractor handles own tax | You handle it |
| Time to hire | Days | Days | Months |
| Main risk | Ongoing service fee | Misclassification | Admin and compliance burden |
Option 1: Hire through an employer of record
An EOR employs your worker in the UK on your behalf. You choose the person, set the role and manage the work. The EOR issues a UK employment contract, runs payroll through PAYE and keeps the employment compliant.
What the EOR handles
- UK-compliant employment contract and statutory terms
- PAYE payroll and payslips
- Employer National Insurance contributions
- Workplace pension auto-enrolment
- Right to work checks
- Statutory leave and sick pay
- Termination and notice processes
What you still handle
- Recruiting and selecting the person
- Day-to-day management and performance
- Equipment and tools
- Agreeing the salary and benefits package
Option 2: Hire a contractor
A contractor is self-employed and invoices you. This works for defined projects or services where the person controls how, when and where they work and can use their own tools or substitute someone else.
It does not work as a way to avoid employment obligations. In the UK, status depends on the real working relationship, not the label in the contract. If someone works set hours, under your direction, as an integral part of your team, they are likely to be treated as a worker or employee. If you are engaging a contractor through their own limited company, the IR35 off-payroll rules may apply depending on your size and the circumstances.
Option 3: Set up a UK entity
Registering a UK company and a PAYE scheme gives you full control and can be cheaper per head at scale. It also means you are responsible for payroll, pensions, insurance, filings and every employment law obligation. It tends to make sense once you have several UK employees and a long-term UK presence.
What hiring a UK employee costs
Employer costs sit on top of salary. For the 2026 to 2027 tax year, according to GOV.UK:
- Employer National Insurance: 15% on earnings above the secondary threshold of £5,000 per year (£417 per month).
- Workplace pension: employers must automatically enrol eligible workers aged 22 up to State Pension age who earn over £10,000 per year. Qualifying earnings run from £6,240 to £50,270. The statutory minimum employer contribution is 3% of qualifying earnings.
- Apprenticeship Levy: 0.5% of annual pay bill, only for employers with a pay bill above £3 million, because of a £15,000 annual allowance.
- Statutory leave: 5.6 weeks of paid holiday a year for full-time workers.
Worked example (illustrative): for a £60,000 salary, employer NI is 15% × (£60,000 − £5,000) = £8,250. Employer pension at the 3% minimum on qualifying earnings of £43,760 (£50,270 − £6,240) is about £1,313. Both are before any EOR fee, benefits or other employment costs.
Sources: Rates and thresholds for employers 2026 to 2027 (GOV.UK), Earnings thresholds (The Pensions Regulator).
EOR fees: what an employer of record costs in the UK
Short answer: an EOR charges a flat monthly service fee per employee on top of the employee’s salary and statutory employer costs. The RemotePass UK EOR management fee is $549 per employee per month. Global EOR pricing starts from $349 depending on country. The fee is billed as one flat rate and excludes immigration-related costs.
How EOR fees are structured
EOR pricing is typically a flat monthly fee per employee (or a percentage of payroll). The fee covers the legal employment relationship, payroll, tax remittance, benefits administration and compliance. It is separate from the employee’s salary and from employer taxes, which the EOR passes through to you at cost.
What the RemotePass fee covers
- Legal employment in the UK, with a country-specific contract reviewed by local legal experts
- Right to work and identity verification
- Payroll, tax and statutory contributions
- Benefits setup and administration
- Employee onboarding and ongoing HR administration
- A named customer success manager with a stated response time of under 4 hours
- One monthly invoice covering all global employees, with each worker paid in local currency
- Work visa and permit sponsorship and support in the UK (immigration fees are billed separately and quoted individually)
What is billed on top of the fee
- The employee’s gross salary
- Employer National Insurance (15% above £5,000 a year) and employer pension contributions (see the worked example above)
- Optional extras such as premium health insurance with dependent coverage
- Any equipment you provide directly
- Visa or immigration costs where the hire needs sponsorship. These are excluded from the $549 fee, vary by individual circumstances and are quoted on request.
UK at a glance
- Management fee: $549 per employee per month
- Minimum onboarding time: 2 working days once all employee documents are received (the standard end-to-end RemotePass EOR timeline is about 1.5 weeks, and visa processes can extend it)
- Work visa / permit support: Yes
Worked example (illustrative): a £60,000 UK hire costs £60,000 salary + £8,250 employer NI + about £1,313 employer pension, then the monthly EOR fee on top. The monthly EOR fee is $549, so $6,588 a year ($549 x 12), added to the salary, employer NI and pension figures above. Note that the fee is in USD while the other figures are in GBP, so convert at the current exchange rate.
RemotePass vs Deel on fees
| RemotePass | Deel | |
|---|---|---|
| EOR price from | $349 per employee per month globally ($549 in the UK) | $599 per employee per month |
| Pricing model | One flat rate. The proposal matches the invoice | Fees reported for onboarding, amendments and standard terminations |
| Offboarding charges | None | Extra charge when someone leaves |
| Deposits | None | Reported as required |
| Support | Named CSM for every customer from day one | Ticket queues. Dedicated support only for 25+ employees |
Source: RemotePass vs Deel comparison. The page states Deel data was gathered from public sources as of 14 August 2026 and may change. Competitor figures are estimates and exclude taxes, discounts and custom pricing.
Questions to ask any EOR about fees
- Is the monthly fee flat, or a percentage of salary?
- Are there onboarding, amendment or termination fees?
- Is a deposit required?
- Is the price on the proposal the price on every invoice?
- How are visas, benefits and equipment billed?
For a quote based on your hire, see the RemotePass EOR page or use the cost calculator.
Right to work checks
Every UK employer must confirm a person’s right to work before they start. This applies whether you hire directly or through an EOR, where the EOR performs the check as the legal employer. If the person is not a UK or Irish citizen, check what visa route they need. A worker based outside the UK who is not employed there is a separate tax and legal question, so confirm where the person will actually be working. Official guidance: Check a job applicant’s right to work (GOV.UK).
Step by step: hire in the UK through an EOR
- Confirm the role is a genuine employment. Full-time, integrated into your team, long-term.
- Agree the package. Salary, pension, holiday, notice period and any benefits.
- Choose an EOR that is transparent on fees and supports UK payroll, pensions and right to work.
- Sign the service agreement with the EOR.
- EOR issues the employment contract and completes right to work checks.
- Onboard the employee. Equipment, tools and access to your systems.
- Run payroll monthly. The EOR pays the employee, NI and pension, then invoices you.
- Manage changes and exit (promotions, pay changes, notice and termination) through the EOR.
How to choose an EOR for the UK
Compare providers on:
- Fee transparency. Is the monthly price public, and what is extra?
- UK compliance depth. Contracts, pensions, statutory leave and termination handled by UK-qualified staff.
- Employee experience. Payment speed, benefits, support.
- Contract flexibility. Minimum terms and exit conditions.
- Contractor option. Whether the same platform also supports contractors if you need both.
- Integrations and reporting. Accounting, HRIS and spend reporting.
RemotePass publishes a UK EOR fee of $549 per employee per month, with a minimum onboarding time of 2 working days once all employee documents are received. RemotePass can sponsor and support UK work visa and permit applications. Every customer gets a named customer success manager from day one. The platform covers 150+ countries (48 in Europe), so the same account handles hires across multiple markets. See the RemotePass vs Deel comparison for a side-by-side on fees, support and offboarding.
Common mistakes
- Calling an employee a contractor to avoid costs. UK status tests look at the real relationship.
- Ignoring pensions. Auto-enrolment applies from the first eligible payday.
- Skipping right to work checks. Employers can face civil penalties for employing someone without the right to work.
- Forgetting employer NI in the budget. At 15% above £5,000 it is a significant cost.
- Assuming a UK-based worker can be paid from abroad informally. Payroll tax obligations follow where the work is done.
Frequently asked questions
Can I hire someone in the UK without a UK company? Yes. Use an employer of record, which employs the person on your behalf, or engage a genuine independent contractor.
Is an employer of record legal in the UK? Yes. EORs operate in the UK as the legal employer and are responsible for payroll, tax and statutory obligations. UK law has no specific EOR license regime, so check a provider’s compliance track record.
How long does it take to hire in the UK through an EOR? RemotePass lists a minimum onboarding time of 2 working days in the UK once all employee documents are received. The full onboarding process typically takes about 1.5 weeks, and visa or immigration processes can extend this.
Who pays employer National Insurance? The legal employer pays it. With an EOR, it is included in the costs the EOR invoices to you.
Do I need to offer a pension? Yes, if the worker is eligible for automatic enrolment. The EOR handles enrolment and contributions.
What is the difference between an EOR and a contractor? An EOR employs the person with full employment rights. A contractor is self-employed, invoices you and is not entitled to employee rights.
Can I use one platform for UK employees and contractors in other countries? Yes, if the provider supports both. RemotePass covers EOR and contractor management in 150+ countries.
How much does an EOR cost in the UK? RemotePass charges $549 per employee per month for UK EOR, on top of salary and employer costs such as National Insurance and pension. The fee excludes any immigration-related costs.
