Employers normally operate PAYE (pay as you earn) as part of payroll. Payroll and deductions need to be made to HM Revenue and Customs’ (HMRC) system which collects income tax and national insurance from employment.
Traditionally, the UK has been very welcoming of foreign investors and businesses which makes it an attractive place for overseas businesses and entrepreneurs to conduct their operations.
Entity Registration and Incorporation Requirements
Setting up a new business or expanding an existing one in the UK is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.
Banks are open from Monday to Friday 9am to 4pm.
The standard working week is 40 hours per week usually worked from Monday to Friday
In the UK, individuals can be classified as employees, workers or independent contractors. Each classification carries different rights and protections. All employees and workers are entitled to a statement that outlines their conditions of employment. If an employee is dissatisfied about an issue, a claim can be brought before the Employment Tribunal.
Services, manufacturing, construction and tourism
Dates & Numbers
Official State Name
United Kingdom of Great Britain and Northern Ireland
English, Welsh, Gaelic
International Dialing Code
Mercans offers reliable and compliant payroll services in the UK, ensuring timely and accurate payments to employees. With experience, expertise, and smart payroll technology, our UK-based payroll team delivers industry-leading outsourced payroll services. As one of the largest payroll outsourcing company with approval from HMRC in the UK, Mercans is a leader in the industry.
As an umbrella company in the payroll industry and a specialist payroll service provider in the UK, we can help your team navigate ever-evolving regulations by taking the hassle out of complex and time-consuming payroll processes, including managing Real Time Information (RTI), reporting, and pension auto-enrolment.
You can rely on our dedicated payroll experts to respond to all your payroll-related queries and your requirements in real time. In order to give you time to focus on your core business operations, we tailor our services to fit in with your firm’s operations.
Global Payroll refers to the compensation a business pays its employees for a set period and on a given date. Global Payroll management must take into account all relevant benefits and deductions, keeping in mind the minimum wage applicable. It is worth noting that, in the UK, there is no legal right to pay for working extra hours.
It is acceptable to provide employees with online payslips
Payroll reports must be kept for seven years
28 days paid sick leave
28 weeks sick leave
52 weeks of paid maternity leave and 26 weeks of paid paternity leave
Maternity & Paternity Leave
No statutory provisions for the 13th salary
£8.91 per hour for employees aged 23 and above
Employers are not forced to pay workers for doing overtime.
Half a week's pay for each full year under 22. one week's pay for each full year for 22 or older, but under 41.
As an Employer of Record in the UK, Mercans takes on the legal responsibility for employment compliance, payroll, and HR administration, allowing companies to expand their global workforce without the burden of establishing a local entity. You can grow your global team with confidence thanks to our localized contracts, our easy-to-use invoicing system, and our best-in-class compliance standards.
In the case that speed and local expertise are among your greatest concerns when expanding to or employing workers in the United Kingdom (U.K.), an employer of record may be the best option for achieving your goals with regard to global expansion.
You can hire and onboard workers in the U.K. quickly using a payroll employer of record, sometimes referred to as an international PEO, without incurring the cost and risk of setting up a local company.
Our Global Employer of Record solution lets you hire your team directly through our local legal entities in each country, while we handle payroll, tax, benefits, and compliance so you can focus on what really matters – achieving your business and team goals.
Our platform is designed to work as a unified employment platform with automated workflows, digital signatures, employee payroll, contractor payouts, and all types of compliance solutions that you might require.
Learn about the requirements for hiring, employment, payroll, and benefits for workers in the U.K. and how we can help you in dealing with your international employment needs through our employer of record service, Professional employer organization (PEO), and with the assistance of our local HR experts.
Mercans offers PEO services in the UK, enabling businesses to access local talent and markets while we handle all employment-related tasks and legal compliance, reducing risk and ensuring seamless expansion. When it comes to PEO in UK, Mercans provides a cost-effective solution for companies seeking to outsource HR and payroll processes.
As a Professional Employer Organization, Mercans provides a range of services including employee benefits, payroll administration, and compliance with UK employment laws. This allows companies to focus on their core business activities while entrusting their HR and payroll processes to experienced professionals.
In the UK, most individuals get a Personal Allowance of tax-free income, that is, the amount of income an individual can have before tax is paid. An individual can claim the basic State Pension when they reach the State pension age.
In the UK, tax is paid by individuals on income received which includes wages, benefits, pension and any savings interest. Income tax is to be paid on income above an individual’s Personal Allowance. If employed, the employer will deduct income tax from wages paid.
Corporate Income Tax
Income Tax Rate
The Department for Work and Pensions (DWP) administers the State pension and a range of working age, disability and ill health benefits.
Social Security Rate
Social Security Rate for Employers
Social Security Rate for Employees
UK employment laws seek to ensure that both employers and employees are protected through legislation on dismissal, holidays, pay, discrimination and more.
All employees have an employment contract with their employer. This sets out the conditions of employment, the duties of the employee as well as the rights and responsibilities of both parties. It is important to note that once a job offer is accepted, there is a contract with the employer. An employment contract does not have to be written down.
All employees have a legal right to request flexible working and must have worked for the same employer for at least 26 weeks to be eligible for this. By law, workers cannot work more than 48 hours a week on average. This is sometimes called the ‘working time directive’. Exceptions include where 24 hour staffing is required, in security or surveillance, domestic servant in a private household.
Almost all workers are legally entitled to 28 days paid holiday a year (known as statutory leave entitlement or annual leave). This includes agency workers, workers with irregular hours and those on zero-hour contracts. Statutory paid holiday entitlement is limited to 28 days.
An employee dissatisfied over pay, dismissal or discrimination may take an employer to an employment tribunal. The employer may be required to pay compensation or reinstate the employee if they lose the case.
Minimum notice period for terminating employment
Total number of public holidays
Working hours per week
Total number of days for Compassionate and Bereavement Leave
UK Visas and Immigration makes decisions on who has the right to visit or stay in the country, with firm emphasis on national security.
An individual’s UK resident status determines whether they pay tax in the UK on foreign income earned. Residents normally pay UK tax on all their income, whether from the UK or abroad.
Work Permit validity
UK visa application form
A valid passport
Proof of financial means (such as bank statements and payslips)
Proof of accommodation
Detailed travel itinerary
Tuberculosis test results
UK visa invitation letter (If applicable)
Receipt indicating UK visa fees are paid
Certified translations of any document that is not in either English or Welsh