As an employer in the, you can expect to pay the following types of costs:
Taxes are mandatory contributions collected by governments, this can be in many forms but they are compulsory. These are the costs that are associated with employing or maintaining employment.
A few examples of taxes are:
National Insurance
Pension
Council & State Taxes
Central Government Tax / Federal Government Tax
These are the costs associated with onboarding and employing new employees. These costs are split between the following:
- Internal recruitment costs – costs incurred if you as a business decide to run a recruitment process using inhouse resources.
- External recruitments costs – costs incurred if you as a business decide to outsource recruitment
Employee referral bonuses (cash or prizes)
Recruiter Salaries
Interview costs (The number of hours times hourly salary of involved employees)
Advertising costs (Job boards, PPC)
Recruiting software
Recruiting events
Non-internal recruiter fees (Agency fees)
These are workplace benefits that help your employees protect their physical and financial wellness.
A couple of example are:
Sick Days
Paid Holidays
Bonus
Life Insurance
Training Packages
These are costs associated with having, maintaining and kitting out an office space.
These expenses can include:
Office Rental or Office Purchase
Office utility bills
Computers and software
Office landline phones and mobiles
Highly-skilled, independent professional freelancer.
Highly-skilled, independent professional freelancer.
Overview
Below we have sought to explain how our services can help reduce your costs as a UK business. However, these cost savings and principles apply to many high income developed countries including Europe, North America. If you would like us to work some numbers with you and do a cost-saving discovery, please contact us here.
Example of cost-saving in the United Kingdom.
As government Employment taxes costs are unavoidable, we have focused on that in our example, and apply to all businesses equally. Employee Acquisition Costs; Employment Perks & Office space and equipment will vary from company to company based on their discretionary business management.
The tabs to the right show the costs if you were to pay under various salaries.
Virtuell Team Business Assistant Fees
The below are where Virtuell remote working packages sit within the national minimum wage in the united kingdom.
To view our competitively priced services, please view here
| National Minimum Wage | Per Hour Rate |
| National Living Wage | 8.91 |
| 21-22 Year Old Rate | 8.36 |
| Virtuell Rate[1] | 6.92 |
| 18-20 Year Old Rate | 6.56 |
| Virtuell Rate[2] | 5.19 |
| 16-17 Year Old Rate | 4.62 |
| Virtuell Rate[3] | 4.62 |
| Apprentice Rate | 4.3 |
Overview
Below we have a demonstrative example of the cost to an employer, employing someone at the national minimum wage in the united kingdom:
£4.30 Per Hour – Apprentice Rate.
This can be used as the baseline example, as the cost no doubt would be a lot more, taking into account things such as recruitment costs & office costs, other implicit and explicit costs.
| Annual | Monthly | Weekly | Daily | Hourly | |
|---|---|---|---|---|---|
| Gross | £ 8,944.00 | £ 745.33 | £ 172.00 | £ 8.60 | £ 4.30 |
| National Insurance | £ 0.00 | £ 0.00 | £ 0.00 | £ 0.00 | £ 0.00 |
| Pensions | £ 81.12 | £ 6.76 | £ 1.56 | £ 0.08 | £ 0.04 |
| Net | £ 9,025.12 | £ 752.09 | £ 173.56 | £ 8.68 | £ 4.34 |
Overview
Below we have a demonstrative example of the cost to an employer, employing someone at the national minimum wage in the united kingdom:
£4.62 Per Hour – Under 18 Rate.
This can be used as the baseline example, as the cost no doubt would be a lot more, taking into account things such as recruitment costs & office costs, other implicit and explicit costs.
| Annual | Monthly | Weekly | Daily | Hourly | |
|---|---|---|---|---|---|
| Gross | £ 9,609.60 | £ 800.80 | £ 184.80 | £ 9.24 | £ 4.62 |
| National Insurance | £ 0.00 | £ 0.00 | £ 0.00 | £ 0.00 | £ 0.00 |
| Pensions | £ 101.09 | £ 8.42 | £ 1.94 | £ 0.10 | £ 0.05 |
| Net | £ 9,710.69 | £ 809.22 | £ 186.74 | £ 9.34 | £ 4.67 |
Overview
Below we have a demonstrative example of the cost to an employer, employing someone at the national minimum wage in the united kingdom:
£6.56 Per Hour – 18 – 20 Year Old Rate.
This can be used as the baseline example, as the cost no doubt would be a lot more, taking into account things such as recruitment costs & office costs, other implicit and explicit costs.
| Annual | Monthly | Weekly | Daily | Hourly | |
|---|---|---|---|---|---|
| Gross | £ 13,644.80 | £ 1,137.07 | £ 262.40 | £ 13.12 | £ 6.56 |
| National Insurance | £ 0.00 | £ 0.00 | £ 0.00 | £ 0.00 | £ 0.00 |
| Pensions | £ 222.14 | £ 18.51 | £ 4.27 | £ 0.21 | £ 0.11 |
| Net | £ 13,866.94 | £ 1,155.58 | £ 266.67 | £ 13.33 | £ 6.67 |
Overview
Below we have a demonstrative example of the cost to an employer, employing someone at the national minimum wage in the united kingdom:
£8.36 Per Hour – 21 – 22 Year Old Rate.
This can be used as the baseline example, as the cost no doubt would be a lot more, taking into account things such as recruitment costs & office costs, other implicit and explicit costs.
| Annual | Monthly | Weekly | Daily | Hourly | |
|---|---|---|---|---|---|
| Gross | £ 17,388.80 | £ 1,449.07 | £ 334.40 | £ 16.72 | £ 8.36 |
| National Insurance | £ 1,179.73 | £ 98.31 | £ 22.69 | £ 1.13 | £ 0.57 |
| Pensions | £ 334.46 | £ 27.87 | £ 6.43 | £ 0.32 | £ 0.16 |
| Net | £ 18,903.00 | £ 1,575.25 | £ 363.52 | £ 18.18 | £ 9.09 |
Overview
Below we have a demonstrative example of the cost to an employer, employing someone at the national minimum wage in the united kingdom:
£8.91 Per Hour – National Living Wage.
This can be used as the baseline example, as the cost no doubt would be a lot more, taking into account things such as recruitment costs & office costs, other implicit and explicit costs.
| Annual | Monthly | Weekly | Daily | Hourly | |
|---|---|---|---|---|---|
| Gross | £ 18,532.80 | £ 1,544.40 | £ 356.40 | £ 17.82 | £ 8.91 |
| National Insurance | £ 1,337.61 | £ 111.47 | £ 25.72 | £ 1.29 | £ 0.64 |
| Pensions | £ 368.78 | £ 30.73 | £ 7.09 | £ 0.35 | £ 0.18 |
| Net | £ 20,239.19 | £ 1,686.60 | £ 389.22 | £ 19.46 | £ 9.73 |
Overview
Below we have a demonstrative example of the cost to an employer, employing someone at: £20,000 Per Annum Salary
This can be used as the baseline example, as the cost no doubt would be a lot more, taking into account things such as recruitment costs & office costs, other implicit and explicit costs.
| Annual | Monthly | Weekly | Daily | Hourly | |
|---|---|---|---|---|---|
| Gross | £ 20,000.00 | £ 1,666.67 | £ 384.62 | £ 19.23 | £ 9.62 |
| National Insurance | £ 1,540.08 | £ 128.34 | £ 29.62 | £ 1.48 | £ 0.74 |
| Pensions | £ 412.80 | £ 34.40 | £ 7.94 | £ 0.40 | £ 0.20 |
| Net | £ 21,952.88 | £ 1,829.41 | £ 422.17 | £ 21.11 | £ 10.55 |
Overview
Below we have a demonstrative example of the cost to an employer, employing someone at: 30,000 Per Annum Salary
This can be used as the baseline example, as the cost no doubt would be a lot more, taking into account things such as recruitment costs & office costs, other implicit and explicit costs.
| Annual | Monthly | Weekly | Daily | Hourly | |
|---|---|---|---|---|---|
| Gross | £ 30,000.00 | £ 2,500.00 | £ 576.92 | £ 28.85 | £ 14.42 |
| National Insurance | £ 2,920.08 | £ 243.34 | £ 56.16 | £ 2.81 | £ 1.40 |
| Pensions | £ 712.80 | £ 59.40 | £ 13.71 | £ 0.69 | £ 0.34 |
| Net | £ 33,632.88 | £ 2,802.74 | £ 646.79 | £ 32.34 | £ 16.17 |
Overview
Below we have a demonstrative example of the cost to an employer, employing someone at: £40,000 Per Annum Salary
This can be used as the baseline example, as the cost no doubt would be a lot more, taking into account things such as recruitment costs & office costs, other implicit and explicit costs.
| Annual | Monthly | Weekly | Daily | Hourly | |
|---|---|---|---|---|---|
| Gross | £ 40,000.00 | £ 3,333.33 | £ 769.23 | £ 38.46 | £ 19.23 |
| National Insurance | £ 4,300.08 | £ 358.34 | £ 82.69 | £ 4.13 | £ 2.07 |
| Pensions | £ 1,012.80 | £ 84.40 | £ 19.48 | £ 0.97 | £ 0.49 |
| Net | £ 45,312.88 | £ 3,776.07 | £ 871.40 | £ 43.57 | £ 21.79 |