Service

Seconding staff to the UK: payroll, social security and tax

Moving a manager from head office to London for two years creates payroll, social security and personal tax questions in both countries. We run the UK side and give your home advisers the numbers they need.

From £150per secondee per month · plus payroll fee

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A secondee working in the UK is taxable here on UK workdays from day one, and UK PAYE usually applies even if pay stays on the home payroll. Social security depends on the agreement between the UK and the home country: EU and EEA staff can remain in their home scheme for up to 24 months under the Trade and Cooperation Agreement; US staff for up to five years under the totalisation agreement; India has no agreement, so UK National Insurance applies from day one.

We set up the UK payroll or modified PAYE arrangement, apply for the certificate of coverage where one exists, calculate tax equalisation or protection if your policy requires it, and register the secondee for self-assessment where needed. Visa sponsorship is immigration law: we work with an immigration adviser on the sponsor licence and Skilled Worker route and handle the payroll and reporting duties a sponsor has.

What’s included

Secondment tax and social security assessment by home country
UK PAYE or modified PAYE (Appendix 6) set-up
Certificate of coverage or A1 application support
Tax equalisation and hypothetical tax calculations
Self-assessment for secondees
Sponsor-licence payroll and reporting duties (with an immigration adviser)
Short-term business visitor agreement for frequent visitors

How it works

What happens, in order

Assess

Home country, length of stay, pay structure and family situation determine the tax and social security treatment.

Set up

Payroll arrangement, certificates and HMRC registrations in place before arrival.

Run

Monthly payroll and year-end returns in the UK; figures supplied to home advisers.

When you need this

Who this is for

Groups sending founders, country managers or engineers to the UK for more than a few weeks. Frequent short visitors are handled by a short-term business visitor agreement instead.

Common questions

Does a seconded employee pay UK tax?

On UK workdays from day one, yes, subject to the treaty’s 183-day rule which rarely helps where the UK company bears the cost. UK residence after arrival brings worldwide income into scope, with overseas workday relief available for the first three years for some.

Do we pay UK National Insurance for seconded staff?

Depends on the agreement. EU/EEA: home scheme for up to 24 months with an A1. US: home scheme for up to five years with a certificate of coverage. India, UAE and Singapore: UK NI from day one (India has no agreement with the UK).

Can you sponsor visas?

Sponsorship is immigration law and we are not immigration advisers. We work alongside a regulated adviser and handle the payroll and reporting side of being a sponsor.

What is tax equalisation?

A policy under which the employee pays no more and no less tax than they would have at home; the employer bears the UK difference. We calculate the hypothetical tax and the gross-up.