Resources How US Companies Can Hire Contractors in the UK (Without a UK Entity)

How US Companies Can Hire Contractors in the UK (Without a UK Entity)

US company looking to hire contractors or consultants in the UK? We’ll help you find the right solution—quickly and compliantly

At Contractor Taxation, we partner with all the major umbrella companies and contractor management providers in the UK. Whether you need to hire one contractor in London or build a remote team across the UK, we’re here to help. Our service is completely free. We are knowledgeable, friendly, and responsive by phone or email.


Sound Familiar? Real Questions from US Companies Like Yours

“Hello, I’d like to consider hiring someone in the UK (for a US based company) and was hoping to hear more about how Contractor Taxation works, the costs and what is included. Can we please set up a call for early this week? Many thanks,”

“Hi. We’re a US based company and are considering hiring an employee in the UK. I’d like to learn more about your services and related fees. Thanks”

“We are a US based C Corp that wishes to hire an employee in the UK. We’re unsure of the best way to proceed, but would prefer to not establish a new entity in the UK if we can avoid doing so.”

“I want to directly source and hire technology contractors globally in the UK, but don’t want the legal and tax implications. I am effectively looking for an international payroll solution for fixed term contractors.”

“Hello, I would like to know how much you would charge to provide a service for a US company that wants to hire a person to work for them in the UK.”

“I am a US citizen working for a US company with no presence in the UK. I hold a UK residence/work permit, and want to work remotely from the UK. The company’s stated reason for refusal was ‘tax issues.'”

“We have contractors in the UK and the EU and want to make them employees and have the freedom to hire additional employees internationally.”

“We are thinking of hiring an employee in the UK and trying to find out the best process to do so. He would work exclusively in the UK except rare occasion to visit with us in the US. We would like to try to meet his current salary and benefits, which includes insurance. Not sure how this is done.”

“We’re a US based start-up (with staff in US and Portugal) looking to support our growth plans by hiring remote talent from UK in first instance. We are unable to carry the admin burden internally and I’d like to explore how Contractor Taxation may be able to support us.”

“Want to onboard a couple folks in UK without setting up entity”

“I work as a contractor/consultant for a US based charity but I am currently residing in the UK. I am currently the Executive Director of the charity (as a consultant). We are looking at: 1. Hire me as an international employee based in the UK as President of the US-based charity and comply with all US rules for employment and employer taxes 2. Comply with all UK rules as remotely hired employee. Thank you in advance for your support.”

“Hi there, We are considering hiring an employee that is moving to the U.K. My company is concerned about having to register as a U.K. employer or get into the taxing authority of the U.K. People here are concerned that if we do this, there is risk that we will suddenly end up owing UK taxes somehow, or risk ‘permanent establishment’ of the company in the UK which would presumably subject us to additional regulation. I have only a few days to resolve this, and unless I can come up with a way to address these concerns then we will not move forward in the process of engaging you. Please contact me by phone at your earliest convenience to discuss. I am in the USA (GMT-8). If you can’t reach me by phone you can e-mail, but I would vastly prefer to talk to someone. Best regards”

“US privately owned SaaS Business seeking to employ staff in UK; 4-5 in short term but likely to be 10-12 within 1 year. I am regional leader in UK and would be open to speaking. Thanks”

“I have two staff that have elected to relocate (one to HK and one to UK) and I need assistance understanding potential costs of using your services. Thank you”

“We’re looking for a partner we can work with for our EMEA hires and would like to talk with you about how you might be able to help us with that. Could someone from your team reach out to me about this? We were referred to you by our VCs. Thanks”

“Looking at hiring UK employees for our US based company”

“We just recently hired a employee who is workign remotely for us from the UK and is a military spouse. I am having trouble getting her payroll set up and have just realized our payroll provider may not be able to handle payroll for someone living out of the country. I’m interested in seeing what you can provide and how much it will cost.”

“Looking to hire Sales Managers in different EU countries (France, Germany, UK). Need to understand the costs of hiring them. Thanks.”

“Hello, Contractor Taxation – I’m an HR consultant writing on behalf of a client which is a nonprofit based in the US. They have several internationally-based teammates currently contracted directly as consultants, but they are considering switching to an umbrella company third party to ensure compliance and appropriate classification. I’m doing an initial screening to see what companies might be a possible fit. First, I just want to confirm that you work with US-based nonprofits? And then can you confirm that you provide support for the following countries: Worker in UK (UK citizen), Worker in Cape Verde (Canadian citizen, formerly based in Senegal), Worker in South Africa (South African citizen, formerly based in Zimbabwe), Worker in India (Indian citizen), Potential future worker in Mexico. If you have general ranges for these countries you can share at this time, that would also be super helpful!”

“We are US company based out of SF. We have an Employee in UK who has been with us as a contractor who we want to hire full time. We also want to hire a second employee who we have been in the process of interviewing. Contractor Taxation would be a solution for us as an alternative to setting up a subsidiary. Specially since the team size is small. I was trying to understand the cost structure. From the FAQ’s it states there is a management fee but doesnt really state how much. How much is the management fee work for hiring employees in UK”

“Please send me details on how to advise (my client) the second largest private consulting co. in the US. The Managing Partner would like me work for them but they have no legal entity yet in the UK. Call me in the morning please”

“We are a small company in SLC UT. We are in the process of signing a contract with a very large international company. The contract requires we provide support 24/7 and would need a support person in the UK, probably 2. We believe you can help us with this. At the current time, we just need some general cost information so we can add it to a proposal.”

“We are looking to partner with a global PEO firm. We have new hires in UK, AU, and Canada, 1 in each right now and growing. UK will grow the fastest, about 10 FTE’s by end of the year. Any chance we can connect with someone today for a quick call on your capabilities and pricing?”

“I would like to schedule an introductory meeting discussing your services in more detail. Our HQ is in the USA and we have about 15-20 employees in different countries (UK, Netherlands, Canada, Australia, Brazil, Chile). We are re-evaluating the best manner in which to service our employees and ensure local compliance.”

“Hello, I would like to learn more about your solutions to employ full-time employees in the UK and Canada. Please let me know when I can speak with a representative. Thanks”

“We have an employee that lives in the UK and we would like to hire a management company to make sure that we follow all UK employment laws”

“Hi, We’re an American company looking to potentially hire someone from the UK for approximately 65,000 USD in terms of salary. What would be a good estimate on how much taxes and fees we should expect if we go through Contractor Taxation? If you need specific regions, we’re based in New York City and the potential hire lives in Ramsgate, England. It’ll be a work from home position with possible travel for conventions and events. Thanks”

“I’m UK based and in conversations with a US company to build their business in the UK and Europe. I’m keen to talk with you about potential solution.”

“There are two people we are looking to employ and possibly add a third in the UK. We are evaluating whether we need to incorporate a UK subsidiary or use your solution for this. Can you provide a quote for this? Thanks”

“Looking to expand with an employee out in the UK. We’re a dual entity company based in Canada & USA. We’re small (10 people). Looking for help and understanding of costs involved to potentially use your services. Thanks”

“Hello! I work for a Los Angeles based film and television production company. I have recently moved back to London (I’m a British citizen) from Los Angeles and am taking up the new position of UK-based executive for the company. We have been looking into setting up a subsidiary in the UK but are finding there’s a lot of hassle and fees involved with accountancy firms over here and that it’s time consuming to open a bank account etc. With that in mind, I wanted to explore whether this may be a more efficient and cost effective solution. We’re keen to get up and running as soon as possible. I’d love to hear more about your pricing range. It would just be me that the company are employing over here for starters, so what we require is relatively simple! Thanks, and looking forward to hearing from you!”

“We are a California based startup, looking to hire our first full-time employee in the UK (a software engineer). Their base salary would be 65k GBP and we would like to understand how Contractor Taxation can help and what the management fee and overhead structure would be.”

“Hi,I am currently in the process of joining an early stage VC backed startup incorporated in the US (I know the founders well). I am based in London and since the company doesn’t have any presence in the UK, they asked me to check around the various options available for them to process my salary. I had read about you guys while browsing for various solutions. I will be joining as a full time employee, part of their leadership. I wanted to have a quick chat to understand how the process works as well as the broad commercial arrangement. I will be the only employee working out of London for this company at the moment (rest of the team is in India and the US). Regards”

“We are a US-based 501c3. We are not registered in the UK, but we are looking to hire an Executive Assistant based in the UK. I’m writing to request a quote for your services.”

“I am a UK citizen, currently living and working in Southern California. I am planning on moving with my family (my husband is a US citizen) back to the UK. My current employer would like to keep me on in a remote position. One option is that I go freelance, however we would prefer that I remain an employee. Is this something that you would help us with? Can I set up a call for Wednesday March 10th to discuss? Thank you!”

“We have been seriously considering employing sales people internationally (remote full-time employment), e.g. in Germany, Belgium and UK, instead of making contractor cooperation.”

These are just a fraction of the real problems we have solved for US companies hiring in the UK. We helped them find compliant, cost-effective solutions—and we can help you too.

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What We Do: UK Contractor Employment Solutions

Hiring contractors in the UK as a US company comes with complexities: IR35 rules, PAYE compliance, National Insurance, and employment law. We simplify the process.

✓ Over 15 Years of Experience

We’ve helped tons of US companies hire in the UK.

✓ IR35 Compliance Advice

IR35 rules determine whether contractors should be taxed as employees. We’ll assess your contractor relationships and advise on compliant structures to avoid HMRC penalties.

✓ We Know All Your Options

We partner with all the major UK umbrella companies.

✓ Handle all industries and job titles

Historically we used to specialise in IT contractors but these days we can service almost any industry or role – as long as our partner’s insurers will take it on. 

✓ International Payroll for UK Contractors

Need an international payroll solution for fixed-term contractors in the UK? Umbrella companies handle all UK tax withholding, National Insurance, and PAYE reporting.

✓ Remote Worker and Freelancer Management

Have remote workers or freelancers working from the UK for your foreign company? We’ll help structure compliant employment arrangements.


Why Foreign Companies Choose UK Contractors

  • Access to Top Talent: The UK has a highly skilled workforce, particularly in tech, finance, consulting, and creative industries.
  • English-Speaking: Native English speakers make communication seamless for international teams.
  • Time Zone Advantages: UK time zone provides good overlap with both US East Coast and European markets.
  • Market Entry: Hiring in the UK helps you establish a presence without the cost of setting up a UK subsidiary.
  • Flexible Workforce: Contractors give you flexibility to scale up or down quickly.
  • Future proof: You can convert your contractors to employees at any time. Or even establish your own entity and move to direct employment if you wish.
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Why Choose Contractor Taxation?

🤝 We Know All Your Options

We partner with all the major UK umbrella companies and contractor management providers. We’ll present the best 2-3 options for your specific situation.

📞 Friendly, Responsive Support

We’re here by phone or email. No automated systems—just knowledgeable, approachable experts who understand both UK employment law and the challenges foreign companies face.

💡 IR35 and UK Employment Law Expertise

UK contractor law is complex. We stay current on IR35 rules, employment status tests, PAYE requirements, and tax regulations so you don’t have to.

💰 Cost-Effective Solutions

We compare umbrella companies transparently, helping you find competitive pricing without compromising on compliance or service.

⚖️ Compliance Peace of Mind

Get it right from the start. We ensure your UK contractor arrangements are structured compliantly, reducing your HMRC audit risk.


Common Scenarios We Help With

US Companies Hiring UK Contractors

“We’re a US company based in SF. We have a contractor in the UK we want to hire full time as an alternative to setting up a subsidiary.”

We Help: Set up employment through UK umbrella companies so you can hire without creating a UK limited company. The umbrella handles all PAYE, National Insurance, and compliance.

US Employees Relocating to UK

“I want to work remotely from the UK for my US company but they say there are tax issues.”
We Help: Explained the tax compliance solution. Set up umbrella company employment so the employee could work legally from the UK while employed by a UK entity for tax purposes.

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Converting UK Contractors to Employees

“We have contractors in the UK and want to make them employees.”

We Help: Transition contractors to employee status through umbrella companies, ensuring compliant PAYE employment without you needing a UK entity.

International Payroll for Technology Contractors

“I want to hire technology contractors in the UK but don’t want the legal and tax implications. I need an international payroll solution for fixed term contractors.”

We Help: Umbrella companies provide full payroll services for UK tech contractors, handling all tax withholding, National Insurance, and IR35 compliance.

Foreign Companies Employing Remote Workers in UK

“Can a company in China hire me and I will be living and working in the UK? Will I have to become a contractor?”

We Help: The worker can often choose between contracting and full employment, both provided through UK umbrella companies. But this can have cost implications, in particular for employers national insurance (social security) which applies to employees but not contractors.

International Sales Teams Including UK

“We’re considering employing sales people internationally in Germany, Belgium and UK instead of contractor cooperation.”

We Help: Set up compliant employment in the UK (and other countries) through umbrella companies, no UK entity required.


How It Works: Simple, Straightforward Process

Step 1: Free Consultation

Contact us by phone or email. Tell us about your UK hiring needs: How many contractors? What roles? What’s your timeline? We’ll discuss your options—no obligation.

Step 2: We Present Your Options

Based on your needs, we’ll recommend 2-3 UK umbrella companies with transparent cost comparisons.

Step 3: We Help You Choose

We’ll explain the pros and cons of each option in plain English. You’ll understand exactly what you’re getting, what it costs, and what the compliance implications are.

Step 4: We Facilitate Setup

Once you’ve chosen your umbrella company, we’ll introduce you to the provider and help coordinate the setup. We’re here to answer questions throughout the process.

Step 5: Ongoing Support

Even after your contractors are onboarded, we’re available if you have questions, need to scale up, or want to adjust your arrangement.


Frequently Asked Questions

Do I need to set up a UK limited company to hire contractors?

No. Using a UK umbrella company allows you to hire contractors or employees in the UK without creating a UK limited company or subsidiary. The umbrella becomes the legal employer while your worker works exclusively for you.

What is an umbrella company and how does it work?

An umbrella company employs contractors on behalf of end clients. The contractor works for you, but the umbrella handles PAYE, National Insurance, pension contributions, and compliance. It’s a popular solution for temporary or project-based contractors.

What is IR35 and does it apply to my UK contractors?

IR35 is HMRC’s rule to determine if a contractor should be taxed as an employee. It looks at factors like control, exclusivity, and financial risk. If your contractor works like an employee, IR35 may apply. Using an umbrella company automatically ensures IR35 compliance as contractors are employed on PAYE.

How much do UK umbrella companies charge?

Umbrella company charges can vary dependent on the level of service, salary and market sector. Some providers charge a set monthly fee whilst others charge a percentage of salary. We’ll get you transparent quotes from multiple providers so you can compare. The cost is significantly cheaper than full employment solutions.

Can I hire multiple contractors across the UK?

Yes. Umbrella companies can employ contractors anywhere in the UK—London, Manchester, Birmingham, Scotland, Wales, or elsewhere. You get a single point of contact for payroll and compliance.

What about National Insurance and PAYE?

The umbrella company handles all PAYE (Pay As You Earn) tax withholding and National Insurance contributions for both employer and employee. You pay the umbrella company a single invoice, and they manage all UK tax compliance.

Can I convert my UK contractors to permanent employees?

Yes. This is a common transition. We’ll help you move contractors from self-employed status to PAYE employment through an umbrella company, ensuring proper payroll setup, pension auto-enrolment, and benefits administration.

What if I want to hire technology contractors for fixed-term projects?

Umbrella companies are ideal for fixed-term contracts. They provide the flexibility of contracting with the compliance of employment. Contractors can be hired for specific project durations.


Ready to Hire Contractors in the UK?

Get a free consultation today. We’re friendly, knowledgeable, and here to help.

📞 Call us or 📧 email us at contractortaxation.com/contact

We work with all the major UK umbrella companies and contractor management providers. Let us help you find the right employment solution for your UK contractors—quickly, easily, and compliantly.


Contractor Taxation – Your friendly, knowledgeable partner for hiring contractors in the UK. We know all your options, and we’re here to help you choose the best one.

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