Expanding into the United Kingdom gives foreign companies access to a world-class talent pool, a stable regulatory environment, and one of Europe’s most dynamic business ecosystems. But hiring UK employees from abroad—without a local entity or full-time office—can present legal, administrative, and operational challenges.
Whether you're building a remote team, launching a UK sales office, or hiring local staff to support market entry, it’s essential to understand your legal obligations, tax exposure, and employment responsibilities. At Fraser Bond, we help foreign businesses navigate UK employment law and set up compliant hiring structures that support sustainable growth.
You are not required to form a UK company to hire British employees—but doing so can offer tax, liability, and administrative advantages. Alternatives include:
Employer of Record (EOR): A third-party provider becomes the legal employer and manages payroll, taxes, and compliance on your behalf.
Umbrella Company or PEO (Professional Employer Organisation): Similar to an EOR, with added HR and benefit administration.
Contractor Engagement: Hire UK professionals as self-employed contractors. This is only viable if the role is project-based and compliant with IR35 regulations.
Fraser Bond helps you assess and select the best employment structure for your UK growth strategy.
UK employees are protected by comprehensive employment legislation covering:
Minimum wage and working hours
Pension auto-enrolment
Holiday pay, sick leave, and parental benefits
Termination notice periods and redundancy pay
Unfair dismissal and discrimination laws
Employers must provide a written employment contract and itemised payslips, and must comply with HMRC reporting and GDPR regulations when handling employee data.
Before employment begins, you must verify the candidate’s legal right to work in the UK. Acceptable documents include:
British or Irish passport
Settled or pre-settled status under the EU Settlement Scheme
UK work visa or sponsor certificate
Employers can face fines of up to £20,000 per illegal worker for non-compliance. Fraser Bond helps coordinate right-to-work checks and immigration compliance.
When employing UK staff, you must:
Register with HMRC as an employer
Operate PAYE (Pay As You Earn) for income tax and National Insurance
Auto-enrol eligible employees into a pension scheme
Issue monthly payslips and file Real Time Information (RTI) submissions
EOR or outsourced payroll services can manage these obligations on your behalf, ensuring timely payment and reporting.
Hiring fully remote UK workers is increasingly common, especially for tech, marketing, and business development roles. However, remote work doesn’t exempt employers from local obligations—benefits, taxes, and right-to-work checks still apply.
Important considerations include:
Providing compliant employment contracts
Offering access to mental health, wellbeing, or DSE (Display Screen Equipment) support
Meeting minimum wage and work-hour laws
Defining working hours, tools, and data security responsibilities
Pilot projects and market testing
Hiring a country manager or UK representative
Supporting UK-based clients or operations
Running a distributed or hybrid team model
Fraser Bond supports businesses at every stage—from first hire to full team build-out.
Fraser Bond provides end-to-end hiring support, including:
Employer of Record (EOR) introductions and coordination
Payroll setup and HMRC registration
Employment contract drafting and benefits advisory
Work eligibility checks and onboarding documentation
Compliance with GDPR, employment law, and tax law
Support with scaling operations and moving from EOR to full UK entity
We ensure your hiring process is smooth, compliant, and positioned for long-term success.
Hiring UK employees from abroad is not only possible—it’s a smart way to establish a local presence, access top talent, and test the UK market. With the right support, foreign businesses can build effective, fully compliant teams without setting up a UK office immediately.
Fraser Bond helps international employers simplify the process through tailored guidance, strategic introductions, and full-spectrum operational support.
