United Kingdom

CurrencyPound Sterling
Payroll FrequencyMonthly/Lunar/Bi-weekly/Weekly
Date Formatdd/mm/yyyy
VAT20% standard rate.

PEO / Employer on record Services
TopSource offers complete Payroll, PEO and contractor management services for United Kingdom.
TopSource provides PEO (Professional Employer Organization) services to multi-national companies establishing a presence in United Kingdom or to start-up companies that do not wish to be burdened with the complications of UK employment regulations.
As a Professional Employer Organization (PEO), TopSource serves as an outsourced Global employment Solutions provider, providing comprehensive employment services such as payroll, payroll related compliances (National Insurance, PAYE etc.), leave and attendance administration, HR management, and assistance with employer compliances.

Services we offer

Payroll Processing
• Employment solutions/leasing • Establishing tax efficient salary structure
• Providing documents associated with employment • Employee on-boarding process and documentation
• Payroll system access • Monthly salary calculation
• Employee expense reimbursement (If applicable) • Salary disbursement to employee’s account
• Monthly pay slip generation (If applicable) • Employee statutory benefits administration and deduction
• RealTime Information (RTI) submission viz. FPS & EPS • Support with HMRC notifications
Supplementary services
• Pension Administration
• Money Movement services for payment of employees and 3rd parties

Company formation in United Kingdom
We offers company formation services in UK and can help company registration in UK, company incorporation, and with all the necessary documentation. To register a company is a popular option to start a business in UK by startups and businesses with higher growth aspirations. We also allows foreign companies to smoothly setup a company anywhere in United Kingdom.

We can assist in the company formation with the following procedures

  • Register with Companies House for VAT and Corporation Tax
  • Register with HMRC for PAYE
Statutory Compliances

We offer high-quality corporate statutory compliance services in UK. Our services meet highest standards and meet all your compliance requirements. By placing your employees on our payroll, we take care of all statutory compliances such as RTI submission, PSA submission, Statutory Payments like SMP, PAYE, NI, Student Loan. Will deal with statutory compliances like:

  • Pay as You Earn (PAYE)

    According to HMRC, employers need to deduct tax (PAYE) on the payments to the employees. The same must be paid to HMRC after every payroll and reported via RTI submissions.
    Details of the current tax slabs are given below:

    Tax Rate (Band) Annual Taxable Income Tax Rate
    Personal allowance Up to £12,500 0%
    Basic rate £12,501 to £50,000 20%
    Higher rate £50,001 to £150,000 40%
    Additional rate Over £150,000 45%
  • National Insurance

    National Insurance (NI) is a social security system in the United Kingdom paid by workers and employers for funding state benefits like illness and unemployment. Employees and employers contribute equally a certain percentage of the monthly wages to NI. Deductions depend on the NI Category of the employee.
    Details of the current NI slabs* are given below:

    NI category letter Employee’s contribution Employer’s contribution
    A 12% 13.80%

    *: these contributions for reference purposes only. The slabs change based on the NI Category and is different at different earning levels.

  • Student Loan deductions

    Employees need to payback the Student Loan that they have taken while pursuing their studies or post-graduation. They need to payback Tuition Fees Loan, Maintenance Loans or Postgraduate Loans. When the employee starts paying and how much needs to be paid depends on which repayment plan the employee is in.

  • Pensions

    Pensions is another form of social security benefit and it focuses on the welfare of the workers to improve their standard of living, working conditions and gives social security. Since 2012, all employees must be enrolled into the pension plan run by the employer depending on the criteria set by HMRC for auto-enrollment.

  • RTI Submission

    RTI is designed to make PAYE submissions more efficient – meaning employer needs to submit information to HMRC in real time, every time an employee is paid.

About Employment in United Kingdom

Working Hours

An employee can’t work more than 48 hours a week on average – normally averaged over 17 weeks. This law is sometimes called the ‘working time directive’ or ‘working time regulations’. If the employee is below 18, they can’t work for more than 8 hours a day or 40 hours a week.

Holiday Entitlement

All full-time workers are legally entitled to 5.6 weeks’ paid holiday a year i.e. at least 28 days’ paid annual leave a year for a 5-day week. Part-time workers are entitled to at least 5.6 weeks’ paid holiday, but this will amount to fewer than 28 days depending on the number of working days.

Maternity Leave

Female employees are entitled to 52 weeks of maternity leave (Statutory Maternity Leave), with first 39 as paid and remaining as unpaid. The benefit can be availed by women for a period extending up to a maximum eight weeks before the expected delivery date and remaining can be availed after childbirth.


The notice period depends at least the notice stated in your contract or the statutory minimum notice period, whichever is longer. Employer must provide valid reason that can be justified and must be consistent.


Most workers in the UK are automatically enrolled into a workplace pension scheme by their employer. From the date they are automatically enrolled they have a month to ‘opt-out’. If they do nothing they’ll be enrolled in the scheme. Employees and employers have to make contributions based on specified percentages, to their retirement pot from their pay for as long as they’re employed.

Employer Contributions

By statute, employers in UK contribute the following:
• ER NI – Employer National Insurance
• EPS – Employee Pension Scheme depending on the scheme that the employee is enrolled.

To learn more, contact us now.

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