Payroll for international employees
International payroll splits into two very different problems: paying overseas employees of a UK company, and paying foreign nationals working in the UK. Each has its own compliance stack – and its own breed of provider.
EOR cost
~£250-£600 /emp/mo
Inbound
PAYE + RTW checks
Multi-country
Global aggregators
Advertisement
What makes international employees payroll different
- UK company, overseas employee. You either register a payroll in the employee’s country or use an Employer of Record (EOR) such as Deel or Remote, which employs them locally on your behalf for roughly £250 – £600 per employee per month – far more than domestic payroll, but it avoids creating a foreign entity.
- Foreign nationals in the UK. Standard PAYE applies, plus right-to-work checks, possible sponsor-licence reporting and modified arrangements for short-term business visitors.
- Global payroll consolidation. Multi-country employers use providers such as activpayroll (Aberdeen-headquartered, operating worldwide) or ADP to run many countries through one contract and one reporting layer.
- Double-taxation and NI coordination. A1 certificates, social-security agreements and tax equalisation need specialist handling beyond a domestic bureau.
What to look for in a provider
Match the tool to the direction of travel: EOR platforms for hiring abroad without entities; global payroll aggregators for multi-entity groups; a strong domestic bureau plus immigration advice for inbound workers.
Pricing follows the wider market – see what outsourcing costs (£4 – £10 per employee per month fully managed) – but sector add-ons matter more than the headline rate, so always compare like-for-like quotes.
Advertisement