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Contracting in the UK – payroll services

  • Country name :
    United Kingdom of Great Britain and Northern Ireland
  • Population :
    64.1 million (2012 PRB)
  • Capital city :
    London
  • Languages spoken :
    English
  • Major religion :
    Christianity

Thinking of contracting?

From early planning advice to emergency payroll for imminent work, Link Global Management can help you with your work arrangements.

Get in touch with one of our advisors now using the phone number at the top of the page, or use our online form and email services.

Contracting in UK

Payroll services

Work Permits & Visas in UK

Thinking of contracting?

From early planning advice to emergency payroll for imminent work, Link Global Management can help you with your work arrangements.

Get in touch with one of our advisors now using the phone number at the top of the page, or use our online form and email services.

In general, non-EEA nationals, and persons without settled status or a right of abode in the UK who wish to come to the UK for the purpose of employment must obtain the requisite employment authorization entry clearance for that purpose before traveling to the UK.

In 2008, the government introduced a new Points Based System (PBS) and new legislation for the prevention of illega l working. The PBS is a point-scoring system under which foreign migrants are awarded points to reflect aptitude, experience and the demand for skills in certain sectors. The illegal working legislation increased the penalties for employers who breach the requirements. These measures are aimed at strengthening the government's ability to control immigration more effectively.

Since 2010, the new coalition government has introduced several changes to the PBS that are designed to significantly reduce the numbers of non-EEA economic migrants entering the UK. The most significant of these changes was the introduction of an annual limit (cap), effective from 6 April 2011.

Social Security in UK

An employer contributes at a rate of 13.8% on an employee's earnings above £.148, with no ceiling. However, if the employee contracts out of the state second pension (S2P), which is permitted if the employee is a member of a registered occupational pension scheme, the employer's and employee's required contribution rates are reduced. Except under certain circumstances related to the exercise of a share option or the award of restricted securities, the employer is not entitled to reimbursement for any secondary contributions made, but these contributions are an allowable expense for purposes of determining the employer's income tax or corporation tax. Contributions are collected under the PAYE system.

National Insurance contributions are payable on the earnings of individuals who work in the UK. Special arrangements apply to individuals working temporarily in or outside of the UK. Under certain conditions, an employee is exempt from contributions for the first 52 weeks of employment in the UK.

The employee contribution is payable at a rate of 12% on weekly earnings between £.149 and £.797 and at a rate of 2% on weekly earnings in excess of £.797.

Thinking of contracting in UK?

UK

UK

Population 64.1 million (2012 PRB)
Capital city English
Language Christianity
Major religion Islam, Christianity, Aetheism
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