Hey, I totally get where you're coming from.
I was in your exact shoes last year when we started hiring in Manchester. At first, I also thought setting up a local branch would be the smarter move long-term. But once I started digging into the admin side—corporate tax registration, opening local bank accounts, setting up payroll, appointing directors—it became clear that the legal and operational load was way too much for just one or two hires.
We ended up going with an Employer of Record (EOR) instead, and honestly, it took a huge weight off our shoulders. They manage all the local employment stuff—contracts, taxes, benefits, compliance—so we could just focus on building the actual team.
If you're still exploring options, this page really helped me understand the UK setup better:
https://theemployerofrecord.com/payroll-services-in-the-uk. It lays out what EORs do and what you can expect. The cost per employee is a bit higher than doing it yourself, sure, but the time and stress saved made it totally worth it for us during the early stages.
Hope that helps a bit!