Can I run payroll in United Kingdom without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under United Kingdom labor law and runs local payroll, no entity required.

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Payroll in United Kingdom

Payroll in United Kingdom runs in GBP on a monthly payroll is standard market practice; there is no single statutory mandated cycle cycle, with statutory employer contributions and no statutory 13th-month or mandatory bonus; bonuses are contractual or discretionary. Gracemark operates it end-to-end, humans, not tickets.

Currency

GBP, British pound

Payroll cycle

Monthly payroll is standard market practice; there is no single statutory mandated cycle

Working week

Average working time is capped at 48 hours per week under the Working Time Regulations, with an individual opt-out; overtime premiums are contractual, not statutory

Minimum wage

National Living Wage is GBP 12.21 per hour for workers aged 21 and over from 1 April 2025, with lower development and apprentice rates; rates are reviewed annually

13th-month

No statutory 13th-month or mandatory bonus; bonuses are contractual or discretionary

Employer cost

Employer Class 1 National Insurance is 15% on earnings above the secondary threshold with no upper cap, plus minimum 3% pension auto-enrolment and the Apprenticeship Levy for large employers

Probation

No statutory maximum probation period; probation is contractual and commonly 3 to 6 months

Notice period

Statutory minimum notice is 1 week per year of service up to 12 weeks, and statutory redundancy pay applies after 2 years' service based on age, weekly pay and service, with a capped weekly pay figure

Two ways to run payroll in United Kingdom

Own-entity payroll

For long-term presence in United Kingdom. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Northern Europe time.

EOR-run payroll

No entity in United Kingdom? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 1 week (eor), no local incorporation.

Compliance essentials in United Kingdom

Auto-enrolment workplace pension is mandatory
IR35 off-payroll rules drive contractor-vs-employee scrutiny
Right-to-work checks are strictly enforced post-Brexit
Statutory redundancy and unfair-dismissal protection after 2 years
28 days holiday inclusive of public holidays

Get a payroll quote for United Kingdom

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Deeper guide

Hiring guide: United Kingdom →

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