UK payroll runs through PAYE: income tax and employee/employer NICs are calculated, deducted, and paid to HMRC. Real-time information (RTI) submissions are required. For construction workers, the Construction Industry Scheme (CIS) may also apply: the EOR can handle CIS verification, deductions from payments, and monthly returns to HMRC so subcontractors and employers stay compliant. The EOR as employer operates the PAYE scheme (and CIS where relevant), runs payroll, and handles HMRC reporting so you do not need your own UK employer registration for these workers.
Rates and thresholds change each tax year. Check GOV.UK or your adviser for the current year.
Key rates (2025/26 & 2026/27)
| Rate | 2025/26 | 2026/27 |
|---|---|---|
| NLW (21+) | £12.21/hr | £12.71/hr |
| Employer NICs | 15% above £5k | 15% above £5k |
| SSP (weekly) | £118.75 | £123.25 or 80% AWE |
| SMP/SPP etc (weekly) | £187.18 or 90% AWE | £194.32 or 90% AWE |
| Redundancy cap (week) | £719 | See GOV.UK |
| Pension trigger | £10k; band £6,240–£50,270 | Unchanged |
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