Payroll in the UK is a subject complicated for many foreign managers and companies that want to carry out business activities in the country.
For many companies, the UK has long been a popular ‘first stop’ on international expansion plans, due largely to the country’s efficient regulatory environment, and its vicinity with other European countries.
Sooner or later after you start a business in the UK, you will need to hire employees to work for your company. And to manage them efficiently, you have to understand many aspects related to payroll and the employment regulations.
That is why we prepared this guide to payroll in the UK, so to give you all the information to manage your employees’ taxes, social security, and more.
Introduction about Payroll in the UK
Proper financial management and recording keeping is essential for every company. Payroll is responsible for this and for making the appropriate payments to employees and tax authorities.
The payroll and payroll tax system in the UK is efficient and well developed. The legislation sets rules for the minimum wage and required tax and social security deductions. And there is a government-provided real-time online system for recording and collecting all payments from companies. The rules differ between workers and contracts, and companies are responsible for the accurate and timely calculation and payment.
Outsourcing payroll in the UK is popular. According to a 2020 report from the