UKEstablishmentby City Solution

Service

UK payroll, PAYE and pensions for overseas employers

Before the first UK payslip you need a PAYE scheme, a pension provider and a compliant contract. We register you, run payroll every month, file to HMRC in real time and handle the pension duties most new employers miss.

From £95per month for up to 3 employees · PAYE registration included

UK employers deduct income tax and employee National Insurance from pay and report it to HMRC on or before each payday under Real Time Information. On top, the company pays employer National Insurance at 15% on earnings above £5,000 a year, less the £10,500 Employment Allowance where the group qualifies for it, and a minimum 3% pension contribution on qualifying earnings under automatic enrolment.

We register the PAYE scheme (allow two to three weeks for HMRC to issue references), set up a workplace pension with a provider such as NEST, and run payroll monthly: payslips, RTI submissions, pension uploads, and the HMRC payment figure due by the 22nd. Year-end P60s, P11Ds for benefits and starter and leaver forms are included.

For staff seconded from the parent company, we deal with the social security certificate, the modified PAYE arrangements and the tax equalisation calculations — see seconded staff.

What’s included

  • PAYE scheme registration with HMRC
  • Workplace pension scheme set-up and auto-enrolment assessment
  • Monthly payslips and RTI submissions (FPS and EPS)
  • Employer NI and Employment Allowance claimed where eligible
  • Pension contributions calculated and uploaded
  • Starters, leavers, P45s and P60s
  • Statutory sick, maternity and paternity pay calculations
  • Payroll journal posted to Xero

How it works

What happens, in order

01

Register

PAYE scheme and pension provider set up; employer’s liability insurance confirmed in place (a legal requirement from the first hire).

02

Onboard staff

Starter checklist, tax code, pension assessment and contract details collected for each employee.

03

Run monthly

Payslips issued, RTI filed, pension uploaded, HMRC and net pay figures sent for approval and payment.

When you need this

Who this is for

Any UK company employing its first person here, including a single sales hire or a founder drawing a UK salary. If you have one UK hire and no entity yet, read employer of record or your own UK company.

Common questions

What does it cost to employ someone in the UK?
Salary plus employer National Insurance at 15% above £5,000, a minimum 3% pension and employer’s liability insurance. For a £50,000 salary the total is roughly £58,000. Use the calculator.
Do I have to offer a pension?
Yes. Every employer must automatically enrol eligible staff into a workplace pension and contribute at least 3% of qualifying earnings. There is no minimum company size.
Can the overseas parent pay UK staff directly?
Not without a UK PAYE scheme. Employing UK staff usually also creates a UK taxable presence for the parent, which is one reason to use a UK company.
When is PAYE due?
Electronically by the 22nd of the month following the pay period. RTI submissions are due on or before each payday.

Related reading

Fees exclude VAT and third-party disbursements (Companies House fees, HMRC penalties, courier costs) which are passed through at cost. Identity and ownership checks apply to every engagement. Bank account opening is subject to the provider’s eligibility criteria.