The complete guide to global payroll in the UK

Looking for a compliant payroll provider to streamline your global payroll processes in the UK? Contact our team of specialists today!

• Comprehensive overview of payroll options: The guide explores in-house, managed, and fully outsourced payroll models, helping UK businesses choose the right solution for both domestic and international payroll needs.
• Mauve Group as a leading provider: Mauve Group stands out for its 30 years of global payroll expertise, operating in over 150 countries with services including EOR, salary benchmarking, visa and immigration, and global HR consultancy.
• Compliance and expansion support: The article highlights how global payroll providers help businesses remain compliant with UK and international regulations, avoid permanent establishment risks, and support smooth international expansion.

Are you a UK business seeking to expand beyond your home borders? Or, perhaps, you’re seeking to enter the UK market

HSBC recently reported that a staggering 450,000 UK businesses are “poised to seize international opportunities.” 87% of enterprises already trading globally are seeking further expansion opportunities.

Exploring foreign markets is simpler than ever before. A number of straightforward global workforce management solutions are available to companies of all sizes. An Employer of Record (EOR) hires, onboards, and provides in-country HR to your overseas workers. Services like Global Business Expansion and Salary Benchmarking support businesses to get set up permanently overseas, and attract and retain talent via competitive pay strategies.

Global payroll is one of the key services favoured by businesses seeking to expand internationally. Global payroll simplifies overseas payments by ensuring the compliant remittance of employee salaries, on behalf of the employer.

Start-ups, SMEs, NGOs, universities, and multinationals all benefit from this service. Regardless of your organisation’s size or sector, managing UK payroll can be complex and risky without the right expertise; making compliance a potential minefield for unprepared businesses.

This complete guide delves into the best payroll providers in the UK, compliance requirements, and how service providers like Mauve Group can simplify your domestic and global payroll operations.

Why global payroll matters

Payroll is a core function. But when done poorly, it exposes your company to compliance risks, reputational damage, and even legal penalties. With increased interest in remote work employees, paying foreign independent contractors, and hiring across borders, many UK businesses are opting to outsource payroll to trusted experts.

Whether you need support for payroll work from home setups or require global payroll providers, the goal is the same: ensure accuracy, compliance, and efficiency.

For more information on global payroll, visit our Ultimate guide to global payroll.

Types of payroll services available in the UK

There are several payroll models to consider, depending on your business size and global reach:

In-house payroll

In-house payroll is suitable for smaller businesses with straightforward needs, as keeping your payroll in-house allows you to retain full control. However, this method demands resources, training, and keeping abreast of constant legal updates.

Managed payroll services

Managed payroll services are outsourced solutions wherein a third-party provider manages payroll processing, tax calculations, and payslips.

Managed payroll services are ideal for growing businesses without in-house capacity. Delegating these key responsibilities to a dedicated provider also mitigates compliance risk and reduces the administrative burden on your teams.

Fully outsourced global payroll

Fully outsourced global payroll works best for businesses with a globally distributed workforce. This payroll model covers payroll for overseas teams and ensures global regulatory compliance.

It is often combined with Employer of Record (EOR) and global HR consultancy services, creating a rounded global hiring solution.

Leading payroll providers in the UK

Mauve Group – the best choice for global payroll

Mauve Group is a market-leading international payroll provider with almost 30 years of experience. A UK-owned company, Mauve operates in over 150 countries worldwide, combining expert local knowledge with expansive global reach – making it the go-to solution for businesses with complex global hiring needs.

Mauve’s key services include EOR and global expansion solutions, payroll for international employees, global HR consulting and workforce compliance, salary benchmarking, visa and immigration services, and compliance consultancy.

Mauve Group's Global Payroll team handles the end-to-end process of paying your overseas employees, via a fully managed solution.

By outsourcing to Mauve’s international payroll service, you eliminate the necessity of establishing a local payroll team in every region or purchasing specialised payroll software.

With thirty years of experience, ISO 27001 certification from the British Assessment Bureau, solutions in over 150 countries, and an innovative centralised platform, Mauve Insight, Mauve can help you to quickly and compliantly pay your overseas staff.

Other notable payroll providers in the UK include:

• ADP UK: Ideal for enterprises looking for scalable, cloud-based payroll software.
• Moorepay: A popular choice for SMEs seeking an all-in-one HR and payroll platform.
• Payescape: Known for simplicity and affordability, suitable for UK-only payroll.
• Ceridian Dayforce: Offers advanced workforce analytics for larger multinationals.

Key features to look for in a payroll provider

When evaluating payroll outsourcing companies, UK businesses should ensure that any prospective provider offers the following:

Compliance expertise

Your provider must understand UK tax law and stay on top of HMRC updates. For international operations, they should also manage global compliance services and be aware of permanent establishment risks.

Global capabilities

If you're employing staff overseas or need to pay international employees, ensure the provider offers true international coverage, including EOR company services and support in your target EOR countries.

Salary Benchmarking and cost tools

Providers like Mauve Group offer salary benchmarking to ensure you are offering competitive salaries, in line with local averages and expectations. This will help to ensure you attract and retain top talent, and develop a strong reputation as a fair, equitable employer.

Data security and GPPR

Global payroll involves managing large amounts of extremely sensitive data. You must ensure that any provider you choose to partner with is ISO-certified and compliant with UK GDPR laws to protect sensitive employee data.

Compliance considerations in UK Payroll

UK payroll providers must comply with HMRC regulations, National Insurance (NI) contributions, PAYE tax structures, auto-enrolment for pensions, and GDPR for data security.

If your business hires abroad, you'll also need to consider permanent establishment risks in foreign jurisdictions, how to pay international employees compliantly, and global HR laws related to working hours, overtime, and taxation.

Choosing a provider that understands the difference between an EOR and a PEO can help you navigate these challenges. While both support HR and payroll functions, an EOR is legally responsible for employment whereas a PEO is a co-employment model better suited for domestic arrangements.

How global payroll supports UK expansion

UK companies are increasingly looking abroad for growth. From hiring developers in Eastern Europe to setting up support teams in Asia, international hiring is becoming routine.

But so are the challenges. These include how to pay independent contractors in a foreign country; managing a global workforce across time zones; remaining compliant with local employment laws; and understanding the permanent establishment meaning in each jurisdiction.

A global payroll provider can simplify all of this, allowing you to scale your team without setting up costly local entities.

Best practices for using payroll providers in the UK

To get the most from your provider, follow these best practices:

Define your payroll needs

Are you paying only UK staff or managing an international workforce? This will impact what provider you choose.

Select the right payroll model

For full global coverage, consider partnering with a provider like Mauve Group, which also deliver end-to-end global hiring services.

Request custom payroll packages

Opt for flexible payroll cycles, currency preferences, and reporting structures tailored to your operations. Ensuring you are offered a bespoke package to meet your business’ specific needs means no corners will be cut and compliance will be ensured at every step.

Leverage pay benchmarking

Use salary benchmarking tools to offer fair pay across regions and improve retention and reputation.

Review SLAs and onboarding

Ensure your provider offers clear Service Level Agreements (SLAs) and smooth implementation timelines. This will streamline processes and ensure a straightforward experience for your workers.

Choosing the right payroll provider in the UK

Choosing the right payroll provider in the UK is about more than just processing payslips. It’s a strategic decision that impacts your ability to grow globally, manage compliance, and retain top talent.

With providers like Mauve Group, businesses get more than payroll – they gain a trusted partner in global employment, compliance, and international HR consulting.

Whether you’re a fast-growing start-up or an established enterprise, working with a reliable global payroll company ensures your teams - whether in the UK or abroad - are paid correctly, on time, and in full compliance with local laws. Contact our team today.