Can we hire a person in the UK without having a UK subsidiary?
A Swedish company can hire someone in the UK without incorporating a UK Ltd, but it cannot simply ignore UK employment and tax requirements. Here's what's relevant:
PAYE and payroll
HMRC requires the employer to operate UK PAYE if the employee is UK-resident and working in the UK. A foreign (Swedish) employer can register directly with HMRC as an overseas employer and run UK payroll.
Permanent establishment risk
If the employee's role involves concluding contracts, making decisions, or acting as the business in the UK, this can create a permanent establishment (PE) under the UK-Sweden double tax treaty, exposing the Swedish company to UK corporation tax on profits attributable to that PE. A purely administrative or support role carries much lower PE risk.
Employment law
The employee will have full UK employment rights from day one regardless of whether the employer is Swedish or UK-incorporated."
