Payroll in UK

Thinking about hiring in United Kingdom? To stay compliant and keep things running smoothly, you’ll need to understand the local rules around HR, payroll, social security, and taxes. Discover the key information laid out for you below.

HR and labor laws in UK

When you’re hiring in United Kingdom, it’s crucial to understand local labor laws. From contracts and working hours to leave entitlements and dismissal procedures, here’s what you should know about specific laws in United Kingdom.

Employment contracts

Employers are required to provide a written statement of key employment terms within twomonths of the employee’s start date.

Working hours

The Working Time Regulations cover maximum working hours, rest breaks, and holiday entitlement. Employees cannot work more than 48 hours per week unless they voluntarily opt out.

Minimum wage

The national minimum wage varies depending on the employee’s age and employment type (e.g., apprentices). Rates are reviewed annually.

Payroll management

Paying your team right means following the local payroll laws and protecting your business from fines or legal issues. Here are the payroll essentials in United Kingdom:

Payroll withholding

Employers are responsible for deducting income tax and National Insurance contributions from employee salaries.

Pension scheme

Automatic enrollment in a work place pension scheme is required for employees who meet certain eligibility criteria.

Social security in United Kingdom

The social security system in UK acts as a safety net for your employees, offering protection in key moments throughout their careers and lives. It’s designed to provide financial support during live events like illness, maternity, unemployment or retirement. Discover how the social security system works in United Kingdom:

National insurance

Both employers and employees contribute to the National Insurance system, which funds benefits such as the state pension and unemployment support.

Sick leave

Employees may be eligible for statutory sick pay if they meet certain conditions.

Workplace protections

Creating a fair and safe workplace matters. These laws help protect your employees in UK:

Anti-discrimination

The Equality Act 2010 prohibits discrimination based on protected characteristics such as gender, race, age, disability, religion, or sexual orientation.

Health and safety

Employers must provide a safe workplace and take necessary steps to reduce health and safety risks.

Tax regulations in United Kingdom

Taxes can be tricky. Understanding how the system works in United Kingdom, helps you avoid surprises and stay compliant. Here are some tax basics to keep in mind:

Income tax

The tax year runs from April 6 to April 5 of the following year. Different taxrates apply based on income levels.

Value-added tax (VAT)

The standard value-added tax (VAT) rate is 20%, with reduced rates for certain goods and services.

Paybix helps you managing your payroll in the UK

Running global payroll takes local knowhow. With Paybix, you’ll get expert support, tailored to each country your business in situated in. Thanks to our unified and digital platform, you gather clear insight in labor costs and cross-country payroll. You benefit from a 30% more efficient payroll process, including global reporting and core HR data management. Hassle-free, user-friendly and easy integrated with local payroll providers.

To ensurefull compliance with the latest regulations, Paybix consults with local legal partners and payroll providers. Get in touch with our experts. We provide you with accurate and up-to-date information.

Ready to optimize your payroll processes? Contact us. Book your free and personalised demo. Discover our data-driven solutions for your business success.

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