PEO Services in the UK: EOR and Payroll Providers (2026)

Deel operates as an EOR in the UK through their local entity, handling PAYE tax collection and remittance to HMRC, employer and employee National Insurance Contributions (13.8% employer NIC on earnings above the threshold), workplace pension auto-enrolment (minimum 3% employer contribution), statutory sick pay, and maternity/paternity/shared parental leave administration. Deel generates P60s, P11Ds, and handles RTI (Real Time Information) submissions to HMRC.

Deel's UK EOR pricing starts at $599/employee/month. For companies hiring 1-5 UK employees, this is typically more cost-effective than establishing a UK limited company — entity setup with Companies House is straightforward but ongoing HMRC compliance, payroll processing, and auto-enrolment pension management cost $1,500-$3,000/month through a local accountant or payroll bureau.

Deel's UK operations include support for the Apprenticeship Levy, which applies to employers with an annual pay bill above £3 million at a rate of 0.5% of total payroll. For larger companies using EOR in the UK, understanding the levy obligation and maximizing apprenticeship training credits is important for cost management. Deel also handles statutory redundancy calculations, which follow a specific formula based on employee age, weekly pay (capped at £643 in 2025/26), and years of service.

Rippling provides UK employment through their EOR service and also supports companies with UK entities through their payroll module. The unified platform manages US and UK employees in a single dashboard — automated onboarding generates UK-compliant employment contracts, handles HMRC registration, and enrolls employees in workplace pension schemes.

Rippling handles PAYE, NIC, student loan deductions, and RTI submissions for UK employees. Their benefits module supports private medical insurance (Bupa, Vitality, AXA), dental, and optical plans. For US companies with UK offices, Rippling eliminates the need for separate UK payroll and HR systems.

Rippling's UK benefits module includes pension scheme management compatible with NEST (National Employment Savings Trust), the government-backed workplace pension used by most UK employers for auto-enrolment. The platform also handles the Childcare Voucher scheme successor (Tax-Free Childcare), cycle-to-work scheme salary sacrifice, and electric vehicle salary sacrifice arrangements that are increasingly popular among UK employees. For companies with employees in Scotland, Rippling applies the Scottish income tax rates which differ from the rest of the UK.

Gusto supports contractor payments to the UK, making it straightforward for US companies to pay British freelancers and consultants. Payments can be processed in GBP with currency conversion handled by the platform. Gusto maintains contractor records and provides payment documentation for tax reporting on both sides.

Important: IR35 legislation (off-payroll working rules) means UK contractors working for medium or large companies may need to be treated as employees for tax purposes. Since April 2021, the client company (not the contractor) is responsible for determining IR35 status. Using Gusto for contractor payments does not resolve IR35 obligations — you need a separate IR35 assessment.

UK contractors engaged through Gusto should have their own limited company or operate as sole traders registered with HMRC. The Construction Industry Scheme (CIS) adds additional compliance for contractors in the construction sector, requiring the hiring company to make deductions from payments and submit returns to HMRC. Gusto does not handle CIS compliance, so construction-sector contractor arrangements require a UK-specific solution.

TriNet HR Platform (formerly Zenefits) provides HR record-keeping for UK team members at $8/user/month. The platform handles onboarding checklists, document storage, and PTO tracking that can be configured for UK statutory leave entitlements (28 days minimum including bank holidays). UK payroll must be handled separately through a payroll bureau or EOR.

For companies with fewer than 10 UK employees using an EOR, TriNet HR Platform adds a centralized HR directory without duplicating compliance work. The platform does not handle PAYE, NIC, pensions, or any HMRC compliance.

TriNet HR Platform can store UK employment documents including right-to-work checks, P45 and P46 forms, and employment contract copies. The platform supports the UK's flexible working request process introduced under the Employment Relations (Flexible Working) Act 2023, which gives employees the right to request flexible working from day one of employment. For hybrid UK teams, the PTO module can track both office days and remote working days alongside statutory holiday entitlements.

ScalePEO can connect companies with UK-specific EOR providers and payroll bureaus through their free broker model. Their consultation helps companies evaluate whether they need UK EOR, a local entity with payroll bureau, or an umbrella company arrangement — each model has different cost structures and compliance implications.

For companies deciding between establishing a UK limited company and using an EOR, ScalePEO's consultation provides useful comparative analysis. The UK entity setup decision point is typically around 5-8 employees, where EOR fees exceed the cost of running your own PAYE scheme.

ScalePEO's UK consultation covers the increasingly relevant topic of umbrella companies, which sit between EOR and direct employment as a third model for engaging UK workers. Umbrella companies employ workers on behalf of recruitment agencies and end-clients, handling PAYE and National Insurance. For short-term engagements or project-based work in the UK, an umbrella company may be more cost-effective than EOR. ScalePEO can help evaluate all three models — EOR, entity establishment, and umbrella — based on engagement duration and headcount.