The United Kingdom

The United Kingdom remains a leading global economy, attracting businesses with its diverse workforce, robust legal framework, and strategic location. However, recent fiscal policies, including significant tax increases and legislative changes, have reshaped the employment landscape.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Pound Sterling (GBP)
Payroll Frequency
Monthly or biweekly, depending on employer policy
Employer Taxes
16.80%

Overview

Population
~ 67 million
Language
English
Capital
London
Currency
Pound Sterling (GBP)
Country code
+44
Min wage
12.21 £/hour for individuals aged 21 and over
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
Avg employer tax

16.80%

Tax Breakdown

Personal Income Tax (PIT):

Personal Allowance
£12,570 per year

Tax Bands (England, Wales, and Northern Ireland):

On income up to £37,700
20%
On income from £37,701 to £125,140
40%
On income above £125,140
45%

Tax Bands (Scotland):

On income up to £2,827
19%
From £2,828 to £14,921
20%
From £14,922 to £31,092
21%
From £31,093 to £62,430
42%
From £62,431 to £125,140
45%
On income above £125,140
48%

National Insurance Contributions (NIC):

Employee Contributions:

On earnings up to the Upper Earnings Limit
8%
On earnings above the Upper Earnings Limit
Additional 2%

Employer Contributions:

On earnings above £5,000 per year
15%

Employment Allowance:

Increased to £10,500 per year
Available to eligible employers

Corporate Income Tax (CIT):

Standard Rate
19%
Small Profits Rate
19% for profits up to £50,000
Main Rate
25% for profits over £250,000
Marginal Relief
Applies to profits between £50,000 and £250,000, providing a gradual increase in the tax rate

VAT

VAT

20%

Tax Calculation for United Kingdom
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
GB
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in United Kingdom typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with HM Revenue and Customs (HMRC) and the National Insurance (NI) system

Payroll Setup

Ensure accurate calculation and withholding of taxes and National Insurance contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in United Kingdom
When drafting an employment contract for employees in United Kingdom, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Statutory Sick Pay (SSP) of £118.75 per week for up to 28 weeks
Maternity leave
  • Up to 52 weeks; Statutory Maternity Pay (SMP) of £187.18 per week for up to 39 weeks
Paternity leave
  •  Up to 2 weeks; Statutory Paternity Pay (SPP) of £187.18 per week

Parental Leave:

  • Up to 18 weeks for each child under 18; unpaid

Bereavement Leave:

  • Not required by law; varies by employer

Neonatal Care Leave:

  • Up to 12 weeks; Statutory Neonatal Care Pay (SNCP) of £187.18 per week 

Annual Leave
  • Minimum of 28 days per year, including public holidays
8 Public holidays in United Kingdom

Note: Public holidays may vary in Scotland and Northern Ireland.

1st
New Year's Day
7th
Good Friday
10th
Easter Monday
1st
Early May Bank Holiday
29th
Spring Bank Holiday
28th
Summer Bank Holiday
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 3 Jan: New Year Holiday
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 2 May: May Day
  • 2 Jun: Late May Bank Holiday
  • 3 Jun: Her Majesty The Queen’s Platinum Jubilee
  • 29 Aug: August Bank Holiday
  • 25 Dec: Christmas Day
  • 26 Dec: Boxing Day
  • 27 Dec: Christmas Holiday

Termination Process

Notice Period

Minimum of 1 week for employees with less than 2 years of service; 1 week for each year of service up to 12 years; 12 weeks for 12 years or more

Severance Pay

Not mandatory; subject to employment contract

Final Paycheck

Must be provided immediately upon termination; includes all earned wages and accrued holiday pay

Probation Period

  • Maximum Duration: Typically 3 to 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in United Kingdom
with RemotePass

The UK offers a dynamic business environment with a diverse talent pool. RemotePass simplifies the process of hiring and managing employees in the UK, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including United Kingdom.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The United Kingdom

The United Kingdom remains a leading global economy, attracting businesses with its diverse workforce, robust legal framework, and strategic location. However, recent fiscal policies, including significant tax increases and legislative changes, have reshaped the employment landscape.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Pound Sterling (GBP)
تردد الرواتب
Monthly or biweekly, depending on employer policy
ضرائب أصحاب العمل
16.80%

نظرة عامة

التركيبة السكانية
~ 67 million
اللغة
English
العاصمة
London
العملة
Pound Sterling (GBP)
رمز الاتصال الدولي
+44
الحد الأدنى للأجور
12.21 £/hour for individuals aged 21 and over
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
متوسط ​​ضريبة صاحب العمل

16.80%

تحصيل الضرائب

Personal Income Tax (PIT):

Personal Allowance
£12,570 per year

Tax Bands (England, Wales, and Northern Ireland):

On income up to £37,700
20%
On income from £37,701 to £125,140
40%
On income above £125,140
45%

Tax Bands (Scotland):

On income up to £2,827
19%
From £2,828 to £14,921
20%
From £14,922 to £31,092
21%
From £31,093 to £62,430
42%
From £62,431 to £125,140
45%
On income above £125,140
48%

National Insurance Contributions (NIC):

Employee Contributions:

On earnings up to the Upper Earnings Limit
8%
On earnings above the Upper Earnings Limit
Additional 2%

Employer Contributions:

On earnings above £5,000 per year
15%

Employment Allowance:

Increased to £10,500 per year
Available to eligible employers

Corporate Income Tax (CIT):

Standard Rate
19%
Small Profits Rate
19% for profits up to £50,000
Main Rate
25% for profits over £250,000
Marginal Relief
Applies to profits between £50,000 and £250,000, providing a gradual increase in the tax rate

ضريبة القيمة المضافة

ضريبة القيمة المضافة

20%

حساب الضريبة في The United Kingdom
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
GB
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في The United Kingdom عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with HM Revenue and Customs (HMRC) and the National Insurance (NI) system

Payroll Setup

Ensure accurate calculation and withholding of taxes and National Insurance contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في The United Kingdom
عند إعداد عقد عمل للموظفين في The United Kingdom يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Statutory Sick Pay (SSP) of £118.75 per week for up to 28 weeks
إجازة الأمومة
  • Up to 52 weeks; Statutory Maternity Pay (SMP) of £187.18 per week for up to 39 weeks
إجازة الأبوة
  •  Up to 2 weeks; Statutory Paternity Pay (SPP) of £187.18 per week

Parental Leave:

  • Up to 18 weeks for each child under 18; unpaid

Bereavement Leave:

  • Not required by law; varies by employer

Neonatal Care Leave:

  • Up to 12 weeks; Statutory Neonatal Care Pay (SNCP) of £187.18 per week 

الإجازة السنوية
  • Minimum of 28 days per year, including public holidays
8 عطلات رسمية في The United Kingdom

Note: Public holidays may vary in Scotland and Northern Ireland.

1st
New Year's Day
7th
Good Friday
10th
Easter Monday
1st
Early May Bank Holiday
29th
Spring Bank Holiday
28th
Summer Bank Holiday
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 3 Jan: New Year Holiday
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 2 May: May Day
  • 2 Jun: Late May Bank Holiday
  • 3 Jun: Her Majesty The Queen’s Platinum Jubilee
  • 29 Aug: August Bank Holiday
  • 25 Dec: Christmas Day
  • 26 Dec: Boxing Day
  • 27 Dec: Christmas Holiday

عملية إنهاء العقود

Notice Period

Minimum of 1 week for employees with less than 2 years of service; 1 week for each year of service up to 12 years; 12 weeks for 12 years or more

Severance Pay

Not mandatory; subject to employment contract

Final Paycheck

Must be provided immediately upon termination; includes all earned wages and accrued holiday pay

Probation Period

  • Maximum Duration: Typically 3 to 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في The United Kingdom
مع ريموت باس

The UK offers a dynamic business environment with a diverse talent pool. RemotePass simplifies the process of hiring and managing employees in the UK, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك The United Kingdom.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

دعنا نَدْرُدْش

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.