Hiring in the UK as a US company comes down to one early decision: employ your first people through an employer of record (EOR), or incorporate a UK limited company and employ them yourself. Both routes work. The right one depends on how many people you plan to hire, whether you need to contract with UK customers, and how fast you want the first seller in seat.
This guide covers the structure choice, the employment-law changes landing in 2027, which roles to hire first, how UK titles and notice periods differ, pay norms in sterling, and how far a UK team can cover EMEA. If you are weighing up the market more broadly, start with our UK hiring overview.
Hiring in the UK as a US company: EOR or your own entity
With an EOR, the provider is the registered employer for HMRC and UK employment law. You do not need a subsidiary or branch to start. One provider guide also notes that, provided the person does not enter contracts on your behalf, an EOR arrangement reduces the chance of creating a UK permanent establishment. Take tax advice on that point before the first hire signs.
A UK Ltd is quick to form. You register with Companies House, then register for corporation tax and employer PAYE, appoint a UK-resident director, set up a registered office and open a bank account. Provider guides put the full process at anywhere from a few weeks to about three months, mostly because of the bank account. The Ltd gives you control, a place to sign UK customer contracts and no per-head EOR fee.
Our view: use an EOR for the first one to three hires if you are still testing UK demand. Move to your own entity when headcount grows, when you need to sign UK contracts, or when you want a UK base for other European hires. Remember that a UK entity does not give you the right to employ people elsewhere in Europe.
UK employment law is changing in 2027: plan probation now
The UK has no at-will employment. The rules on dismissal are about to tighten. Under the Employment Rights Act 2025, the qualifying period for ordinary unfair dismissal falls from two years to six months from 1 January 2027, and the cap on the compensatory award is removed. The government updated its timetable on 22 October 2026, and the fire-and-rehire restrictions have moved to March 2027.
Separately, from 1 October 2026 employees have six months, rather than three, to bring most tribunal claims. In practice, anyone you hire from now on will have unfair dismissal rights about six months after their start date. Employment lawyers advise shortening six-month probation periods so managers can judge fit before those rights arise.
For a sales team, that means writing down quota, ramp expectations and performance reviews from day one. A 90-day ramp target that exists only in a Slack thread will not help you. Our comparison of UK vs US sales hiring differences covers at-will, equity and benefits in more depth.
Which roles to hire first, and what they cost in the UK
If founder-led selling has produced UK pipeline, the first hire is usually a commercial or mid-market seller who can run a full cycle alone. Add a solutions engineer or SDR once pipeline justifies it. If you are targeting larger accounts, an enterprise seller or a player-coach lead comes first. Our guides to the first AE hire and the handover from founder-led sales cover the profile and the common failure modes.
| Role | UK base | UK OTE | US base · OTE |
|---|---|---|---|
| SDR / BDR (0–18 months) | £33–40k | £44–58k | $55–70k · $80–100k |
| SMB / Commercial AE | £45–58k | £80–110k | $65–85k · $120–160k |
| Enterprise AE | £85–110k | £160–210k | $120–150k · $230–290k |
| Solutions Engineer | £65–85k | £85–115k | $110–145k · $150–200k |
| Customer Success Manager | £48–65k | £55–78k | $95–120k · $115–145k |
| RevOps Analyst | £40–55k | Base only | $85–115k base |
| Head of Marketing | £85–120k | Base only | $160–200k base |
Full tables sit in the salary guide for account executives, enterprise and strategic sellers and solutions engineers. Two points on pay norms. First, UK bases are lower than US bases, so do not copy a US comp plan and swap the currency. Second, UK candidates compare the base and the realistic OTE, so be ready to explain the split. Our piece on OTE splits helps you set it.
UK job titles: what means what
Most go-to-market titles carry over. Account Executive, Customer Success Manager and Solutions Engineer are all understood. A few differ in practice, in our experience:
- Account Manager: in the UK this often means a post-sale or renewals role, not a new-logo seller. Use Account Executive for hunters.
- Solutions Engineer: you will also see Sales Engineer, Pre-Sales Consultant and Solutions Consultant. Name the scope in the advert.
- Commercial or Mid-Market AE: common UK labels for the band between SMB and enterprise.
- Head of Sales or Country Manager: the usual title for a first UK leader. A VP title can read as inflated at a five-person UK team.
- SDR and BDR: both used. Be explicit about whether the role is inbound, outbound or both.
Notice periods decide your start dates
The statutory floor is low. An employer must give at least one week's notice after one month of service, rising by one week for each complete year from two years, up to 12 weeks. An employee's statutory minimum is one week once they have a month's service. Contracts can set longer terms, and the longer figure applies.
In our experience, professional roles in UK software typically carry contractual notice of one to three months, with senior hires at the longer end. A candidate you offer today may not start for a quarter. Some will serve garden leave. Build that gap into your pipeline plan, and agree a start date in the offer rather than assuming one. Set notice for your own hires with replacement time in mind: a seller on one week's notice leaves you with little cover. See our guide to counter-offers, which are common during long notice periods.
Employer costs on top of salary
- Employer National Insurance: 15% on earnings above £5,000 a year for 2026/27. On a £60,000 salary that is £8,250.
- Workplace pension: you must auto-enrol eligible staff and pay at least 3% of qualifying earnings, within a total minimum of 8%. Many tech employers pay more to compete.
- Holiday: 5.6 weeks, or 28 days for a five-day week. Your contract can include bank holidays within that figure, so state clearly whether yours does.
- EOR fees: if you use one, expect a monthly per-employee fee on top. Get it in writing before you compare routes.
Covering EMEA from a UK base
London is the deepest pool of English-speaking software sellers in Europe. The regional tech clusters (Manchester, Edinburgh, Bristol, Cambridge) can offer lower salary expectations and strong retention for hybrid roles. For the UK and Ireland, one UK-based team is usually enough to start. Our London SaaS GTM market review shows how the market has moved.
Wider EMEA coverage is harder than it looks. Selling into Germany, France or the Nordics often needs native-language reps, and employing someone in those countries needs a local employer or an EOR there. Treat the UK as phase one and decide your second-market hire only once UK pipeline has proved the motion.
A sensible order for your first twelve months
This sequence works for most seed to Series B software companies entering the UK:
- Size the UK pipeline. count named accounts, inbound leads and founder-led opportunities before you open a role.
- Choose the structure. EOR for one to three hires while you test, UK Ltd if you need to sign UK contracts or expect to scale fast.
- Write UK contracts and a comp plan. set notice, probation, restrictive covenants and commission rules in writing, with a probation window shorter than six months.
- Hire the first seller. a commercial AE for short cycles, or an enterprise seller or player-coach lead for larger deals.
- Add support roles in sequence. a solutions engineer or SDR once pipeline needs them, then customer success before the first renewals fall due.
- Review EMEA at month nine to twelve. decide on a second market, a new entity or an EOR, using UK pipeline and win-rate data.
If you want a hand benchmarking UK pay or shortlisting the first seller, we recruit across all twelve go-to-market specialisms from London and San Jose. Our employer page explains how we work.
Frequently asked questions
Yes. A US company can employ UK staff through an employer of record, which acts as the legal employer, runs PAYE payroll and pensions, and issues UK-compliant contracts. You direct the work day to day. Many companies use this route for the first one to three hires, then set up a UK limited company as headcount grows.
An EOR avoids set-up work but charges a recurring per-employee fee. A UK Ltd costs more up front in accountancy, registered office and admin, but has no per-head fee. The break-even depends on headcount and the provider's pricing, so get written quotes. The Ltd usually wins once you have several UK employees or need to sign UK customer contracts.
The statutory minimum is one week after one month of service, but contracts usually go longer. In our experience, one to three months is typical for UK software professionals, with senior roles at the longer end. Choose a figure that gives you time to replace a seller and protect pipeline, and expect candidates to be bound by their current notice.
From 1 January 2027, the qualifying period for ordinary unfair dismissal falls from two years to six months, and the compensation cap is removed. From 1 October 2026, most tribunal claims can be brought within six months rather than three. New hires will gain unfair dismissal rights about six months after starting, so keep probation and performance records tight.
For 2026/27, employer National Insurance is 15% on earnings above £5,000 a year. You must also auto-enrol eligible staff into a pension and pay at least 3% of qualifying earnings. Statutory holiday is 28 days for a five-day week, which can include bank holidays. EOR fees, benefits and recruitment costs come on top.
Not on its own. A UK team covers the UK and Ireland well, and can sell to English-speaking buyers elsewhere. A UK entity does not let you employ staff in EU countries, and markets like Germany or France often need native-language reps employed locally or via an EOR. Prove the UK motion first, then add a second market.