We've been trying to figure out the best way to expand into the UK without having to open a legal entity right away. Setting up a branch sounds like a long and costly process, especially since we’re just testing the waters with a couple of hires first. I've read a bit about Employer of Record services, but I’m still not sure how it actually works in practice. Does anyone have real-world experience using an EOR in the UK? What parts of the hiring process does it really make easier, and are there any trade-offs we should be aware of?
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I’ve gone through this exact situation! I work for a US-based company, and we hired two sales reps in the UK last year using an EOR. It was honestly a lifesaver. We didn’t have to deal with registering a company, figuring out tax codes, or trying to wrap our heads around UK employment law. The EOR handled contracts, payroll, and even helped us with onboarding the employees in a way that aligned with local practices (like explaining how holiday entitlements work and what benefits are customary there).
What stood out most to me was how quick the whole process was—once we decided on the candidates, everything was set up in under two weeks. I’d recommend checking out this page if you haven’t yet. It gives a pretty good breakdown of what’s included, especially in terms of compliance and how they help with payroll taxes https://theemployerofrecord.com/payroll-services-in-the-uk . One thing to note: your control over benefits and internal policies might be a bit limited since the EOR is technically the employer on record. But for initial hiring and market testing, it’s honestly the most hassle-free route we found.