Can you work remotely from the UK for a foreign company?

In the age of remote work, geography matters less than ever. It’s now common for people to live in one country while working for a company based in another. But what if you want to live in the UK and work remotely for a foreign employer that doesn’t have a legal presence in the UK? Is that legally possible? And what does it mean for your tax, immigration, and employment status?

The short answer is: yes, you can work remotely from the UK for a foreign company, but there are important legal and compliance obligations to consider for both the employee and the employer. This guide will walk you through the key issues, from visa requirements and tax implications to employment classification, and explain how a British Employer of Record can simplify the entire process.

Legal and immigration considerations

Whether you’re a UK citizen, a non-resident, or someone planning to move to the UK, the first question to answer is: do you have the right to live and work in the UK?

If you are a UK citizen, hold settled or pre-settled status, or have a valid Skilled Worker visa sponsored by a UK-based entity, then you have a clear legal basis to live and work in the UK.

However, if you’re a non-UK national without these rights, you’ll need a visa that allows work. Importantly, you cannot legally work from the UK on a visitor visa or most student visas—even if the employer is based abroad. Immigration rules focus on activity performed in the UK, not just where your employer is located.

So if you’re planning to relocate to the UK and work remotely, you must make sure your visa permits employment, even if it’s for a non-UK company. That’s where compliant employment structures, such as an EOR, can be especially valuable.

Employment classification and risks

Another key consideration is your employment status in the UK. Are you an employee, a contractor, or self-employed? This classification affects your tax liabilities, access to benefits, and legal protections.

You might be paid as an independent contractor if you’re hired directly by a foreign company without a UK entity. While this may seem simple, it can expose you to risks:

• You may miss out on paid holiday, sick leave, or pension contributions.
• You’ll need to handle your own tax filings and National Insurance payments.
• UK employment laws, like unfair dismissal or maternity leave, won’t protect you.

Moreover, UK tax authority HMRC may challenge your status if your working conditions resemble a full-time employee’s. Misclassification can result in fines and backdated tax liabilities.

This is why proper employment setup matters—to avoid grey areas and ensure full compliance.

Tax and social security obligations

Even if your employer is based abroad, you’re still likely subject to UK tax if you work and live in the UK for a significant period. The Statutory Residence Test determines your tax residency status based on:

• The number of days you spend in the UK,
• Whether you have a home here,
• Your ties to the country.

If you’re classed as a UK tax resident, you must pay income tax on your global earnings. You’ll also need to contribute to National Insurance (NI) unless covered under an exemption or certificate from another country.

However, here’s the catch: foreign employers without a UK entity usually can’t register with HMRC to withhold your taxes or NI. This creates complications:

• You may need to register as self-employed and file returns manually.
• Your employer may not be able to contribute to UK workplace pensions.

You risk non-compliance, especially if HMRC sees you as effectively employed.

Challenges of working for a non-UK employer

While remote work allows freedom, working for a non-UK company without a proper employment structure can create problems:

• You may not receive standard UK employee benefits, such as paid leave, statutory sick pay, or NHS access.
• Your employer cannot legally operate payroll in the UK or make pension contributions unless it opens a local entity.
• Administrative responsibilities, such as taxes and compliance, fall on you, the employee.

Over time, these gaps can create uncertainty in your financial life and legal standing.

How British Employer of Record helps remote workers stay compliant

This is where a British Employer of Record (EOR) provides a solution.

An EOR acts as your legal employer in the UK, while you continue working day to day for your foreign company. It offers the structure and compliance you need, without requiring the employer to establish a UK entity.

What an EOR does: an Employer of Record acts as your legal employer in the UK, even while you continue working for a foreign company. It provides a fully compliant employment contract that meets UK labour laws and takes care of payroll, including tax deductions, National Insurance, and pension contributions.

Through this setup, you gain access to statutory benefits such as paid holidays, sick pay, and parental leave. The EOR also handles your registration with HMRC and pension providers, removing the burden of self-reporting.

Most importantly, it ensures you’re fully protected under UK employment law and can access public services like any locally employed professional.

Who this is ideal for:

• Expats relocating to the UK while keeping their foreign job.
• Remote workers hired by international companies with no UK branch.
• Freelancers or contractors who want the stability of full-time employment, including benefits.
• Employers who want to hire UK-based talent without incorporating in the UK.

For example, Lina, a UX designer originally from Argentina, had been working remotely as a contractor for a US tech startup. When she decided to move to the UK to be closer to her partner, she faced a common challenge—her employer had no legal presence in the UK and couldn’t hire her directly. As a freelancer, she worried about tax compliance, healthcare access, and the lack of job security.

The company partnered with a British Employer of Record (EOR) to solve this. The EOR became Lina’s legal employer in the UK, issued her a compliant employment contract, managed payroll and tax deductions, and registered her for National Insurance and workplace pension contributions. Thanks to the EOR, Lina could live and work in the UK legally, access full employee benefits, and enjoy local employment security, without her employer needing to open a UK office.

With an EOR, you can work legally, stay tax compliant, and gain access to UK employee protections and benefits, without changing your actual job.

Work remotely from UK for foreign company

Yes, you can work remotely from the UK for a foreign company, but you must address key legal, tax, and employment considerations. Without the right setup, you risk immigration violations, tax non-compliance, and missed benefits.

A British Employer of Record bridges the gap, giving you and your employer a fully compliant, secure solution. Whether relocating to the UK or already here, an EOR ensures you’re legally employed, adequately taxed, and fully protected under UK law.

Talk to our team about how we can help you work remotely from the UK, with full compliance and employee benefits.