PEO Services in UK: Frequently Asked Questions

NNRoad’s Professional Employer Organization (PEO) services make market entry into the United Kingdom streamlined and simple. Whether you have come across our services for the first time or already have a solid understanding of global expansion strategy, NNRoad has you covered. Keep reading for some frequently asked questions and our answers regarding PEO services in the UK. 

tower bridge UK

How to Hire Employees in the UK to Work for a Foreign Company? 

Hiring employees in the UK on behalf of a non-resident company is possible. There are two ways one can go about this: 

Hire an Independent Contractor From the UK 

    • Do take note that that independent contractors will not hold any of the same legally guaranteed benefits and protections regular employees in the UK have. 

Partner with a PEO to Hire Employees in the UK 

    • This gives firms the flexibility to hire employees in the UK without setting up a company in the UK.  
    • Contractually your business and a PEO share a co-employment relationship. Together both companies hold specific employer responsibilities and the PEO acts as the employer of record for your organization’s employees.  
    • You, the client, continues managing its core operations while the PEO processes payroll and pays payroll taxes, manages workers’ compensation coverage, provides employee benefit packages, and offers HR assistance to your employees.  
    • Through a PEO your business remains compliant with UK labor laws and mitigates legal risk.  

What Are the Pros of Using PEO Services in the UK? 

In order to hire employees in the UK, you are required to have a legal entity in the country. Then you need register for payroll and comply with UK laws relating to accounting and bookkeeping. Leveraging a PEO means you are able to avoid going through any of these processes, saving you time and energy. 

Hiring an employee in the UK under your authority gives you the opportunity to test the UK market as they will have the local nuance to better equip your business ventures. By using a PEO, you may decide later down the road whether the market is lucrative and register your business in the UK. 

How to Pay Hired Employees in the UK? 

Hiring employees in the UK requires figuring out how to pay them. You may either choose to do remote payroll, set up a legal entity in the UK, ask a local UK vendor to put your UK employees on their payroll, or outsource payroll through NNRoad.  

Regardless of how you decide to run your UK payroll, your company needs to make all required contributions and follow UK labor laws. Your benefits and compensation may differ when compared to your home country, so it is vital to specify all of those terms in the employment contract. 

PEO Services in UK with NNRoad 

NNRoad is the best international PEO of choice. Our industry-leading employment solution services makes NNRoad the ideal avenue to lease employees, register a business, and expand your global business in the UK.  

NNRoad also offers company formation, payroll and tax, and benefits administration services to cover all of your UK expansion needs. For a more in-depth guide to navigating the UK market, check out our NNRoad United Kingdom PEO Guide to better prepare you for your market entry strategy. Contact NNRoad today.