Virtual Assistant vs Hiring In-House: The Real Cost Comparison for UK Businesses

If you're running a small or medium-sized business in the UK, you've probably reached a tipping point. The admin is piling up, you're working evenings, and you know you need help. But here's the question that stops most business owners in their tracks: should you hire someone in-house or outsource to a virtual assistant?

It's not just about the monthly salary figure. The real cost of hiring in the UK involves a web of hidden expenses that most business owners don't factor in until it's too late. Let's break it all down with real 2026 figures.

The True Cost of Hiring an In-House Employee in the UK

When you hire a full-time administrative assistant in the UK, the advertised salary is just the beginning. Here's what you're actually looking at for a typical office-based admin role in 2026:

Salary

The average salary for a full-time administrative assistant in the UK is approximately £25,000 to £28,000 per year, depending on location. In London and the South East, you could be looking at £30,000+.

Employer's National Insurance Contributions

As of April 2025, employers pay 15% NI on earnings above the secondary threshold of £5,000 per year. On a £26,000 salary, that's roughly £3,150 per year in employer's NI alone.

Workplace Pension Contributions

Auto-enrolment requires a minimum employer contribution of 3% of qualifying earnings. On £26,000, that's approximately £780 per year.

Holiday Pay

Full-time employees are entitled to at least 28 days of paid holiday including bank holidays. That's over five weeks where you're paying someone who isn't working. The cost? Roughly £2,800 per year on a £26,000 salary.

Sick Pay

Statutory Sick Pay is £116.75 per week at 2025/26 rates. Many employers offer enhanced sick pay. Budget at least £500 to £1,000 per year on average.

Office Space and Equipment

A desk, chair, computer, monitor, software licences, internet contribution, and potentially office rent. Even in a home-office setup, you're looking at £2,000 to £5,000 per year in equipment and overheads.

Recruitment Costs

Job board listings, agency fees, interview time, and onboarding. The CIPD estimates the average cost of recruiting and onboarding is £3,000 to £6,000 per hire. If the hire doesn't work out, you start again.

Onboarding and Management

New employees need onboarding, supervision, and performance reviews. Factor in at least £1,000 to £2,000 per year in management time and onboarding costs.

The Total In-House Cost

Let's add it all up for a £26,000 per year admin assistant:

• Base salary: £26,000

• Employer's NI (15%): £3,150

• Pension (3%): £780

• Holiday pay (28 days): £2,800

• Sick pay: £750 (average)

• Office and equipment: £3,000 (conservative)

• Recruitment: £4,000 (amortised over 2 years = £2,000/year)

• Onboarding and management: £1,500

Total annual cost: approximately £39,980, or roughly £3,332 per month.

And that's a conservative estimate. If you're in London, add another 15-20%. If the employee leaves within the first year, your recruitment costs double.

The Cost of a Managed Virtual Assistant Through PropPerly

Now let's look at the alternative. PropPerly is a UK-based managed virtual assistant agency that places pre-vetted, experienced VAs with UK businesses. Here's what you pay:

• Part-time VA: from £550 per month

• Full-time VA: from £950 per month

• Property VA (part-time): from £599 per month

• Property VA (full-time): from £999 per month

That's it. No NI. No pension. No office costs. No recruitment fees. No holiday pay coming out of your pocket. PropPerly handles the vetting, onboarding, management, and replacement if needed.

Side-by-Side Comparison

In-House Admin (£26k salary)

• Monthly cost: approximately £3,332

• Annual cost: approximately £39,980

• Hidden costs: NI, pension, holidays, sick pay, office, recruitment

• Risk: High — if they leave, you restart the process

• Flexibility: Low — fixed hours, notice periods, employment law obligations

• Backup: None — if they are sick or on holiday, the work stops

PropPerly Managed VA (Full-Time)

• Monthly cost: from £950

• Annual cost: from £11,400

• Hidden costs: None — all-inclusive pricing

• Risk: Low — free replacement within 3-5 days if not the right fit

• Flexibility: High — no long-term contracts, monthly terms

• Backup: PropPerly provides cover if your VA is unavailable

The annual saving: up to £28,580 per year. That's not a small difference. That's the cost of another hire, a marketing budget, or significant business investment.

The Hidden Costs Most Business Owners Forget

Beyond the direct financial comparison, there are costs that rarely make it into the spreadsheet:

Your Time

Managing an employee takes time. Performance reviews, HR issues, holiday approvals, onboarding sessions. As a business owner, your time is worth £50-100+ per hour. Every hour spent managing an employee is an hour not spent growing your business.

Employment Law Risk

From April 2026, employees in the UK will have day-one unfair dismissal rights under planned employment law reforms. This means the cost and complexity of managing or exiting an employee increases significantly. With a managed VA service, you have flexible monthly terms with no employment law obligations.

Downtime

When an in-house employee takes holiday, calls in sick, or hands in their notice, the work stops. With PropPerly, if your VA is unavailable, a replacement is provided. Your business doesn't miss a beat.

Scalability

Need more help during a busy period? Hiring another employee is a months-long process. Adding another VA through PropPerly can be done in days.

But What About Quality?

This is the concern that holds most business owners back. The assumption is that a VA based overseas can't match the quality of someone sitting in your office.

Here's the reality: PropPerly's VAs are pre-vetted, tested, and experienced in UK business workflows. They work UK hours, are managed by a UK-based team, and come with ongoing support and quality checks.

PropPerly was founded by Riccardo, who personally managed over 135 UK properties using virtual assistants before starting the agency. The systems and processes aren't theoretical — they're built from years of real-world experience.

PropPerly's VAs are based overseas in countries with a lower cost of living, where they earn 2 to 3 times the local average salary. This means highly motivated, committed professionals who see this as an exceptional career opportunity — resulting in outstanding performance and low turnover for your business.

Who Is This Right For?

A managed VA through PropPerly is ideal for:

• Small business owners drowning in admin

• Letting agents and estate agents needing property-specific support

• Ecommerce businesses scaling their operations

• Law firms, healthcare practices, and trades businesses needing back-office support

• Airbnb hosts wanting professional co-hosting support

• Any business owner who values their time more than their ego about having in-house staff

The Bottom Line

Hiring in-house in the UK in 2026 costs a minimum of £35,000 to £40,000 per year when you factor in all the hidden costs. A managed virtual assistant through PropPerly costs from £950 per month — that's £11,400 per year.

The maths is clear. The question isn't whether you can afford a VA. It's whether you can afford not to have one.

Ready to see how much you could save? Book a free discovery call and find out how a managed VA can transform your business.