Companies based abroad who wish to engage with UK-based workers need to be aware of a myriad of legislative considerations before they embark on their hiring strategies. As with UK-based businesses, there are implications for companies located abroad in terms of both British tax and employment law. In 2026/2027 the UK will undergo a seismic shift in employment rights the country has seen in the last 20 years, so it will be crucial for international companies to partner with the right UK Employer of Record.
Keeping Tax Compliant
Even though the workers in question are working for a foreign company, they still need to demonstrate their Right to Work (RTW) credentials and be registered for UK PAYE. Other individuals who are based in the UK but originate from a foreign country, might also have to prove their pre-settled/ settled status to legally work on behalf of a foreign company in the UK.
Internationally based organisations without an established legal entity in the UK are facing increasingly stringent regulations with regards to hiring a remote workforce. Permanent Establishment rules are designed to prevent foreign companies hiring a UK-based workforce without demonstrating that they fully comply with employment law and tax rules.
The Cost of Branching Out
The cost of setting-up such a legal entity can also be prohibitive in terms of opening an office or creating a new company, so outsourcing the management of their UK-based workforce is an attractive commercial option. EOR International provide a specialist Employer of Record (EOR) service to help international companies and organisations hire UK-based workers whilst remaining fully compliant with all local employment and tax regulations.
EOR International’s Employer of Record solution is the perfect vehicle for businesses to take advantage of highly skilled workers to help run their UK-based operation; and are fees are highly competitive against others within the market. Applicable to all sectors, EOR is a comprehensive outsourced employment solution that includes onboarding, payroll and HR all designed to minimise the administrative burden and financial costs to the clients. Being a UK based Employer of Record, we do not outsource our services to a third party, therefore reducing the risk to the supply chain.
