Do we need to register a UK PAYE scheme for a non-UK company?

If you are an overseas business looking to set up in the UK, it is worth understanding the legal framework that will apply when employing staff in the UK.

Firstly, you need to decide whether your UK office is set up as a branch or a subsidiary. Take a look here to find out the difference between a branch and a subsidiary.

There are instances where you may not need to setup an entity at all.

Secondly, you will need to look into employer’s liability insurance which is to protect employers from compensation costs for illness or injury which is as a result of work employees do for your company. It is a legal requirement in the UK for you to have this if your business employee one or more people.

Thirdly, the UK has rules in place to prevent businesses from employing illegal workers. If you are going to employ staff in the UK, you should check that the person has the right to work in the UK before you employ them. If you want to employ someone who needs a work permit, you must have a relevant employer sponsorship licence.

Finally, you must register as an employer with HM Revenue and Customs before your first payday. This needs to happen even if you are the only employee and can take up to five days.

Our Payroll Services

The service that we provide to most of our clients is as follows:-

  • Apply to HM Revenue and Customs for Payroll scheme
  • Weekly or monthly payroll processing including the calculation of payroll taxes, PAYE, National Insurance (both Employee and Employer) and Student Loan Repayments, that are due.
  • Process calculations for statutory leave: SSP, SMP, SAP, SPP as well as recovery calculations
  • Payment of the salaries by Bank Transfer following client’s approval of the Payroll summary that we will send. NB for us to pay salaries we need to be on your bank mandate.
  • Payslips can either be mailed to employees or we can email them with password protection.
  • RTI reporting to HM Revenue and Customs.
  • Payment of Payroll taxes to HM Revenue and Customs when they are due. NB for us to make this payment we need to be on your bank mandate.
  • Process starter information.
  • Produce P45 for any leavers.
  • Complete year end reporting and issue employees with a P60.
  • Handle any payroll queries from employees.
  • Be a point of contact for HM Revenue and Customs if they have any questions.

Alternatively, if you do not wish us to be on your Bank mandate we are able to send you a Payroll Summary excel spreadsheet detailing the salary amounts and payroll tax amounts that are due.

How can Paul Beare Ltd help?

We support overseas companies to set up in the UK. We provide businesses with advice, documentation and support to establish, manage and run your UK office successfully. We also offer Payroll, HR and financial services to meet your UK operating needs. Please get in touch to find out how we can support you.