Global Employer of Record (EOR) in UK

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  1. Overview: United Kingdom (UK)
  2. Global HR Compliance
  3. Global PEO and Payroll
  4. UK Work Visas, Work Permits, Immigration
  5. Contractor vs Employee: Which Is Better?
  6. Expand into the UK without a Company Set Up
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Contractor vs Employee: Which Is Better?

Find out how you can make an informed decision on whether you should engage and pay employees or independent contractors using our free ‘Employee vs Independent Contractor’ Checklist.

The Checklist is the best way to ensure that your company does not miss any crucial aspects when onboarding new hires or converting existing contractors/freelancers into employees. This is especially important when engaging the remote workforce in the UK.

 

 

What Our Clients Say

I’d like to share my experience dealing with Acumen International company.

Speed & responsiveness: Very prompt in response to my first enquiry about converting contractors into employees to follow-up questions.

Completeness of information: I like how detailed the estimates and the transparency make us feel more confident in knowing where the money goes to.

Overall experience: I am pleased and impressed with how fast they respond to my enquiries. We can trust the company to employ the contractors we want to keep.

Quah Shen Dee,
People Success Officer

I always found Acumen International very supportive, professional and helpful. They pay their salary on time and are always ready to sort out any issues that arise.

I must admit I truly enjoy my time as an Acumen International employee and feel like they care about me as an individual. I have my own dedicated manager that provides me with detailed explanations when it’s needed. Payments are always prompt and the entire team does its best to respond to any of my questions.

I highly recommend Acumen International to anyone that requires their services.

Andrew Yanchurevich,
COO


The Benefits of Hiring Independent IT Contractors

Businesses of all sizes should consider building and managing a global workforce. This can often be difficult, as different geographies present unique challenges. However, businesses can create successful global operations by studying these challenges and adapting global employment solutions.

Cost-efficiency

Contracting a qualified IT workforce can be a cost-effective way to run your business. However, as with any decision, there are pros and cons to taking on independent contractors. Ideally, contractors can be an amazing asset for businesses with international operations. Independent contractors are

Flexibility

IT contractors can offer businesses great flexibility in terms of work hours. Full-time employees typically have set hours during which they are available, but a freelance IT developer would likely have more flexible hours to offer. This allows businesses to be better situated to meet their needs and avoid gaps in global coverage. IT contractors who can work independently are good at adapting to the ever-evolving needs of their clients, and typically cost less than full-time employees, since you don’t have to pay taxes or social security for them. All of this makes them a perfect fit for companies making a global move and looking to save time and money.

Access to Unique Global IT Talent Pool

The changing IT talent landscape is a major challenge for businesses. Most leaders know that having the right IT professionals is critical to success, but putting that insight into action can be difficult – especially in a competitive environment. This means that finding and keeping the right and skilled IT employees becomes increasingly important.

Finding the best IT professionals is a limitation for businesses regarding full-time employees. However, with the right tools and strategies, you can easily convert your independent contractor IT professionals from any country to full-time employees in the United Kingdom. PEO engagement provides plenty of options for onboarding skilled individuals and avoiding any limitations on your workforce.

Converting Freelancers into Employees in the UK

The workforce has become increasingly mobile and diverse in today’s global workplace.n recent years, many businesses started using a flexible workforce (freelancers for short). While these independent contractors can benefit companies in terms of cost control and flexibility, some drawbacks should not be overlooked. One key concern is the high turnover rate—which plays a big role in the misclassification of employees. This puts organizations at risk of owing back taxes and benefits — which could lead to painful penalties.

For freelancers, the world of employment is changing as governments reclassify independent contractors. Not only may they owe income tax on their earnings, but they could also lose access to worker benefits such as sick leave and holiday pay. The UK made headlines by introducing IR35 legislation, which aims to modernize employment status designations – ensuring that “workers that would be classified as an employee if they were contracted directly” pay the same Income Tax and National Insurance contributions.

As more and more countries enact employment legislation to address the misclassification of workers, it is becoming increasingly important for businesses to ensure that they comply with these laws. An Employer of Record company can help you retain the talent you need and support you in your long-term workforce legal employment in Lithuania, including during any transition period and with any necessary HR processes.

Should Independent Contractors Be Hired Full-Time in the UK?

Independent contractors are in high demand, but many companies are hesitant to convert their existing freelancers and independent contractors into full-time employees. The reasons for this are multiple: there is a risk of misclassification, companies may not be able to afford the benefits that come with full-time staff in the United Kingdom, and they may not want to burden themselves with the liability of an employee. This fear may be based on evidence of increased lawsuits and regulatory scrutiny, but it overlooks the potential benefits that could come from converting these workers. But with more and more companies competing for these contractors, they are shying away from converting their existing freelancers & independent contractors into full-time employees.

However, there are many reasons why converting a freelancer to an employee can be a smart move for your business. Here are five of them.

Global Employment Compliance

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The Case of an IT Freelancer You Most Certainly Want To Avoid

HHere’sout litigation you definitely would want to avoid… One American company worked with a Slovakian IT freelancer for approximately three years. The American HR director decided to contact Acumen International to employ this freelancer so that they would be in compliance with labour laws and avoid future misclassification issues.

The finance department of this US company did not approve of our offer to employ the Slovakian freelancer as it seemed higher than what they were currently paying the freelancer. An employee misclassification case did not seem imminent, so they decided not to act.

Half a year later the same company contacted us to employ the Slovakian freelancer. Our offer got approved but the freelancer refused to sign our employment agreement. In this half-year, the relationship between the freelancer and the US company went sour. The freelancer decided to go to the labour authorities instead. We never heard the ultimate verdict, but from communication with the HR director we understood that they risked owing social security taxes, vacation, severance payment and additional fines totalling about seventy thousand euros.

Eliminate Non-compliance Risk with PEO Services in the UK

Contractors and freelancers can be a great way to save money but there is always the risk of them being misclassified. The different rules and regulations for employment classification across countries only make this problem worse. Luckily, by hiring a contractor full-time, we can solve this issue right away.

The full-time employment of a foreign person in the UK via a global PEO is an incredibly cost-effective way to gain access to a high-quality workforce. This is due to the PPEO’sability to provide on-site customer support and their deep knowledge of UK employment laws and HR compliance regulations.

5 Benefits of Hiring & Payrolling Foreign Full-time IT Employees Over Independent Contractors via PEO Model

1. Compliance & Cost Control

Acumen PEO can help you streamline global employment and eliminate all legal and compliance complexities associated with expanding into the UK. Engaging and paying foreign talent on a full-time basis via a global PEO solution is about 30% cheaper than engaging in-house.

PEO engagement can help you save up to 50% of the costs associated with working through your own entity. PEOs can offer a wide range of services and benefits that can help you streamline your business processes and keep expenses down.

2. Benefits Administration

Employee loyalty can be increased by up to 47% when using full-time employment as a way to retain talented and successful employees. Freelancers who enjoy benefits such as paid leave or a company car often work even harder than those without these perks. This is because they are motivated to do their best and feel appreciated. When offered a permanent position, they will bring their considerable skills and experience to your business, making it even more successful.

3. Expert Guidance on Employment Law in the United Kingdom

If you’re looking for a quick and easy solution to help with your tax compliance challenges, a PEO or EOR arrangement could be a great way to go. With the help of your global PEO partner, you can quickly test out the UK market and then cancel if you decide it is not right for you. But make sure to understand all of your UK corporate income tax requirements before signing on the dotted line!

The benefits of using an official foreign employment service are clear. A PEO partners with you to take care of all the HR, risk and compliance aspects in the United Kingdom. This way, you can focus on growing your business instead of navigating these complex waters on your own. By eliminating the risk of legal, financial, and business issues with a Global PEO partner, you can be sure that your operation is progressing smoothly. With just a few employees, starting off in the United Kingdom is easy – so go ahead and explore this amazing country!

4. Employee Misclassification Risk Prevention

Global companies are increasingly at risk of employee misclassification, as well as the possibility of legal action against their organizations. A PEO can help you to enhance your HR compliance and avoid these risks, by providing on-site customer support and in-depth expertise in local labour law and tax and compliance regulations. Acumen IInternational’sin-country managers will speak your language, making it much easier to legally employ, onboard, and payroll your globally distributed teams of professionals; you will save time and money with less need for recruitment or training.

5. Global Mobility and International IT Professionals

At Acumen International, we offer expert guidance on all aspects of global mobility and immigration support. Our team of experts can help make your IT professional’s relocation as smooth and easy as possible. We will support you through everything, from knowing the tax and social security obligations in both the UK and their home country to obtaining visas and work permits. And we will even help you set up a payroll administration so that everything is handled tax and social security compliantly in the UK.

How PEO and EOR Can Help You Tap into Top Global IT Talent

Both PEOs and EORs work differently. However, an EOR is a company that takes on the legal risks of employing your workers, including finance, legal & compliance, and safety risks, saving you from any potential problems down the line. This means that all of the responsibilities that come with being an employer are shifted to them — from tax reporting to handling any injuries or issues that occur on the job. YYou’llhave none of these hassles but will take responsibility for managing your Employees’ tasks and performance.

PEOEOR
Employment ModelCo-employer
Sole Employer
Key ServicesGlobal employment, payroll, benefits, immigration (visa, work permits), mobilityGlobal employment, payroll, benefits, immigration (visa, work permits), mobility
Local Entity EstablishmentRequiredOptional
LiabilityShares responsibilities and liabilitiesAssumes all responsibilities and liabilities
Legal AdviceOptionalRequired
Global Labour & HR ComplianceOptionalRequired

Are you looking to engage and pay offshore IT developers in the United Kingdom?

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