Hire in United Kingdom

Typical time to hire

1-2 weeks for contractor, 3-6 weeks for full-time

Entity requirement

UK limited company (Ltd) registration at Companies House. PAYE scheme registration with HMRC.

EOR available

Yes — from $399/employee/month through a Corpshore entity

Contractor of record

Yes — from $39/worker/month

Standard workweek

No statutory standard (48 hours maximum under Working Time Regulations, opt-out available)

Maximum weekly hours

48 hours

Minimum annual leave

28 days including bank holidays (5.6 weeks for full-time)

Public holidays

8 per year

Maternity leave

52 weeks (39 paid: 6 weeks at 90% + 33 weeks at statutory rate)

Paternity leave

2 weeks statutory paternity pay

Notice period

1 week per year of service (up to 12 weeks maximum). Statutory minimum 1 week after 1 month.

Severance

Statutory redundancy pay: 0.5-1.5 weeks per year of service (age-dependent), capped at GBP 643/week (2024).

Probation

No statutory framework; typical 3-6 months. Under 2 years: limited unfair dismissal rights.

Overtime rules

No statutory overtime premium. Working Time Regulations cap at 48 hours/week (unless opted out). Overtime pay is contractual.

Income tax range

20% to 45% (additional rate on income over GBP 125,140). Scotland has a separate progressive scale.

Corporate tax

25% (profits over GBP 250k); 19% small profits rate (under GBP 50k); marginal relief between

Social contributions

Employee NI: 8% (GBP 12,570-50,270) + 2% above. Employer NI: 13.8% above secondary threshold.

VAT / GST

20% (standard); 5% reduced; 0% on food, children's clothing, books

Tax year

6 April to 5 April (dating from the 1752 calendar reform)

Treaty network

Over 130 tax treaties, one of the world's most extensive networks

Worker classification

IR35 (off-payroll working rules) applies to contractors working through intermediaries. The 2021 reform shifted assessment responsibility to medium/large private-sector clients. HMRC's CEST tool assists classification.

Data protection

UK GDPR + Data Protection Act 2018 (post-Brexit adaptation). ICO enforces. Adequate for EU transfers under EU adequacy decision (reviewed periodically).

Right to work

Right to work checks mandatory before employment starts (since 2008). Points-based immigration system post-Brexit. Skilled Worker visa is the main route.

Non-compete

Enforceable if reasonable in scope, duration (typically 3-12 months), and geographic reach. Must protect a legitimate business interest. Garden leave often used as alternative.

Collective bargaining

Voluntary system: no obligation to recognise a union unless it wins a statutory recognition ballot. Union density ~23%, concentrated in public sector.

BACS (Bankers' Automated Clearing Services) is the standard payroll method, processing in 3 days. Faster Payments provides near-instant transfers up to GBP 1M. Stripe Connect and Wise both support GBP natively.

• IR35 reform (2021) significantly changed the contractor landscape; many firms moved contractors to payroll
• Post-Brexit immigration requires sponsorship for most non-UK/Irish workers
• Auto-enrolment pension: minimum 3% employer + 5% employee contribution
• London commands a significant salary premium; regional hubs (Manchester, Edinburgh, Bristol) offer strong talent at lower cost