This article explains how payroll works for employees engaged in the United Kingdom through RemoFirst, covering pay schedules, deductions, leave, statutory pay and end-of-employment entitlements. If you have a question that is not answered below, reach out to RemoFirst support, and the team will be happy to help.
Payroll Schedule in the United Kingdom
How often are UK employees paid?
Employees in the United Kingdom are paid monthly.
When are UK employees paid?
UK employees are typically paid on the last Friday of each month.
What is the UK payroll cut-off date?
The standard payroll cut-off for the United Kingdom is the 10th of each month. Changes received after the cut-off are usually processed in the following cycle.
What currency are UK employees paid in?
UK employees are generally paid in GBP. Other currencies may be supported subject to approval.
Payslips in the United Kingdom
When are UK payslips issued?
Payslips for UK employees are issued each payroll cycle and uploaded to the RemoFirst platform. An itemised payslip is a legal right in the United Kingdom, so every employee should receive one on or before payday.
Why are deductions shown on a UK payslip?
Common deductions on a UK payslip include:
- Income Tax (PAYE)
- National Insurance Contributions (NIC)
- Pension contributions
- Salary sacrifice deductions, if applicable
Salary Proration in the United Kingdom
Why was my first UK salary lower than expected?
Employees who join part way through a payroll period in the United Kingdom receive a prorated salary based on the working days actually completed in that first period.
How is proration calculated for UK employees?
Proration for UK employees is calculated as:
Prorated Salary = Annual Gross Salary ÷ 261 × Working Days Worked
The figure 261 represents the standard number of working days in a UK year (five days per week across the year).
Tax and Government Contributions in the United Kingdom
What taxes apply to UK employees?
UK employees are subject to PAYE Income Tax based on the tax code issued to them by HMRC. For the 2026/27 tax year, the standard England, Wales and Northern Ireland bands are:
- Personal Allowance: 0% on income up to £12,570
- Basic rate: 20% on income from £12,571 to £50,270
- Higher rate: 40% on income from £50,271 to £125,140
- Additional rate: 45% on income above £125,140
Scotland sets its own income tax bands and rates, so employees who are Scottish taxpayers may see a different breakdown. These thresholds are frozen until April 2031.
What are National Insurance Contributions (NIC) for UK employees?
UK employees pay Class 1 National Insurance on a per-pay-period basis. The 2026/27 monthly thresholds are:
- 0% on earnings up to £1,048 per month
- 8% on earnings from £1,048 to £4,189 per month
- 2% on earnings above £4,189 per month
These thresholds are frozen until April 2031.
What if my UK tax code is wrong?
Tax codes for UK employees are controlled by HMRC. To query or correct a tax code, you must contact HMRC directly. RemoFirst cannot change a tax code on your behalf.
Pension Contributions in the United Kingdom
Are UK employees automatically enrolled in a pension?
Yes. Employees who meet the UK auto-enrolment criteria are enrolled into a workplace pension scheme. To qualify for automatic enrolment an employee must be aged 22 or over but under State Pension age, earn more than £10,000 per year, and work in the United Kingdom.
What are the standard UK pension contributions?
The default minimum contributions for a UK workplace pension are:
- Employer: 3%
- Employee: 5%
This gives a combined minimum of 8% of qualifying earnings.
Can UK employees opt out of the pension?
Yes. UK employees may opt out after enrolment within the applicable opt-out period. Where an employee opts out inside that window, any contributions already deducted are refunded.
Public Holidays in the United Kingdom
Are UK employees entitled to public holidays?
Public holiday entitlement in the United Kingdom depends on the employee's contract and their location within the UK. The number of bank holidays differs by nation:
- England and Wales: 8 bank holidays
- Scotland: 9 bank holidays
- Northern Ireland: 10 bank holidays
There is no automatic legal right to take bank holidays off in the UK. Bank holidays can be counted towards the statutory 5.6 weeks of annual leave, depending on the contract.
Is additional pay required for working on a UK bank holiday?
Not automatically. In the United Kingdom, any additional payment for working a bank holiday depends on the employment contract or company policy.
Annual Leave in the United Kingdom
What annual leave entitlement applies in the UK?
UK employees are entitled to 5.6 weeks of paid annual leave. For a full-time employee working five days per week, this is typically 28 days per year. This statutory entitlement can include bank holidays.
Is UK leave prorated for new starters?
Yes. Annual leave for UK employees is prorated based on the employee's start date within the leave year.
Can UK leave be carried over?
Generally no. Limited carry-over may be permitted where agreed in the contract or required by law. Statutory carry-over can apply where an employee was unable to take leave due to sickness or family leave such as maternity.
Sick Leave in the United Kingdom
Updated for 6 April 2026: The Employment Rights Act 2025 changed how Statutory Sick Pay works in the UK. The three waiting days have been removed, the Lower Earnings Limit qualifying threshold has been removed, and a new lower-of calculation applies. The guidance below reflects the current rules.
What is Statutory Sick Pay (SSP) in the UK?
Eligible UK employees receive Statutory Sick Pay when they are absent due to illness. From 6 April 2026, SSP is paid at the lower of either £123.25 per week or 80% of the employee's average weekly earnings. The flat weekly rate increased from £118.75 to £123.25 for 2026/27.
When does UK SSP start?
From 6 April 2026, SSP is payable from the first qualifying day of sickness in the United Kingdom. The previous rule, where the first three days were unpaid waiting days and SSP only began on the fourth consecutive day, no longer applies.
Who qualifies for UK SSP?
From 6 April 2026, the Lower Earnings Limit requirement was removed, so all UK employees can qualify for SSP regardless of how much they earn. Employees earning below £123.25 per week receive 80% of their average weekly earnings instead of the flat rate.
How long can UK SSP be paid?
SSP can be paid for up to 28 weeks for qualifying absences in the United Kingdom.
Family Leave in the United Kingdom
Updated for 6 April 2026: Statutory family pay rates rose to £194.32 per week, and paternity leave plus unpaid parental leave became day-one rights under the Employment Rights Act 2025.
What maternity leave applies in the UK?
UK employees may take up to 52 weeks of maternity leave. Statutory Maternity Pay (SMP) is payable for up to 39 weeks, subject to eligibility:
- First 6 weeks: 90% of average weekly earnings
- Remaining 33 weeks: the lower of £194.32 per week or 90% of average weekly earnings
What paternity leave applies in the UK?
Eligible UK employees may take up to 2 weeks of paternity leave, paid at the lower of £194.32 per week or 90% of average weekly earnings. From 6 April 2026, paternity leave became a day-one right, so an employee no longer needs 26 weeks of service to take the leave itself. Statutory Paternity Pay still requires 26 weeks of continuous service by the qualifying week.
What Shared Parental Leave applies in the UK?
Eligible UK parents may share qualifying leave under UK legislation, with up to 50 weeks of leave and up to 37 weeks of pay shareable between them where the mother curtails her maternity leave.
Are there other UK family entitlements to be aware of?
Yes. Unpaid parental leave became a day-one right from 6 April 2026. Neonatal care leave and pay (paid at £194.32 per week) and a new Bereaved Partner's Paternity Leave also apply from April 2026. If you think any of these may apply to you, contact RemoFirst to check your eligibility.
Expenses and Reimbursements in the United Kingdom
What expenses can be reimbursed for UK employees?
Business expenses that are wholly, exclusively and necessarily incurred for work purposes can be reimbursed for UK employees. Examples include:
- Business travel
- Business accommodation
- Work-related equipment
- Business mileage
Are receipts required in the UK?
Yes. Supporting documentation, such as receipts, should be retained for UK expense claims.
Are UK reimbursements taxable?
This depends on the nature of the expense. Business expenses required for work duties are generally non-taxable in the United Kingdom, while certain allowances may be taxable.
When are UK reimbursements paid?
Reimbursements for UK employees are typically paid through payroll, unless an alternative arrangement has been approved. Process of Expense Submission and Reimbursement
Working Hours in the United Kingdom
What are standard UK working hours?
Standard full-time working hours in the United Kingdom are 40 hours per week.
What is the legal maximum UK working week?
The legal maximum in the United Kingdom is 48 hours per week, averaged over a 17-week reference period. UK employees may voluntarily opt out of the 48-hour limit in writing.
Is overtime mandatory in the UK?
No. Overtime arrangements in the United Kingdom depend on the employment contract and company policy.
Probation in the United Kingdom
What is the standard UK probation period?
Most UK probation periods are 3 to 6 months. There is no statutory maximum probation period in the United Kingdom.
Please note: the Employment Rights Act 2025 is expected to introduce day-one protection from unfair dismissal alongside a statutory initial period of employment. This is not yet in force and is expected in 2027. Current rules continue to apply until then.
Employment Changes in the United Kingdom
What UK changes require an addendum?
Examples of UK changes that require a contract addendum include:
- Salary increases
- Contractual leave changes
- Working hours changes
- Other contractual amendments
What UK changes do not require an addendum?
Examples of UK changes that do not require an addendum include:
- One-time bonuses
- Bank account updates
- Address changes
Resignation in the United Kingdom
What notice period applies for UK resignations?
During probation in the United Kingdom, the notice period is generally 1 week. After probation, the contractual notice period applies. By law, a UK employee who has worked for at least one month must give a minimum of one week's notice, though the contract often requires more.
What is included in UK final pay?
Final pay for a UK employee may include:
- Outstanding salary
- Accrued but unused holiday
- Any contractual payments due
Termination in the United Kingdom
Can UK employees be terminated without cause?
Yes, subject to applicable UK employment law requirements.
Does notice have to be paid in the UK?
Yes, unless the termination is for gross misconduct or another lawful exception applies. The statutory minimum notice an employer must give a UK employee is one week for employment between one month and two years, then one additional week for each complete year of service, up to a maximum of 12 weeks. The contract may provide more.
Is payment in lieu of notice permitted in the UK?
Yes. Payment in lieu of notice (PILON) is permitted in the United Kingdom.
Is severance always required in the UK?
No. Severance, in the form of statutory redundancy pay, generally only applies where the statutory redundancy rules are met.
Redundancy in the United Kingdom
When does UK statutory redundancy pay apply?
Statutory redundancy pay in the United Kingdom generally applies after 2 years of continuous service.
How is UK redundancy pay calculated?
UK statutory redundancy pay is based on age, length of service and weekly pay, using the following multipliers for each full year of service:
- 0.5 week's pay for each full year under age 22
- 1 week's pay for each full year aged 22 to 40
- 1.5 weeks' pay for each full year aged 41 or over
A maximum of 20 years of service counts. For 2026/27, weekly pay is capped at £751, which puts the maximum statutory redundancy payment at £22,530 in England, Scotland and Wales.
Is UK redundancy pay taxable?
Statutory redundancy payments in the United Kingdom are generally tax-free up to £30,000.
For any United Kingdom payroll question not answered above, please contact RemoFirst Support
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