UK businesses: beware new immigration costs!

Business in the UK could soon be severely affected by upcoming changes to the UK’s Immigration Rules.

The new rules are expected to be introduced in two stages over the next six months, the first in October this year and the second in April 2017.

These new rules will see increasing costs across many UK visa categories, along with the introduction of the much-dreaded Immigration Skills Charge.

This new immigration charge will be payable to the Home Office by the sponsors (employers) of non-EU professionals. The charge will set employers back by £1,000 per overseas employee, per year for which they intend to employ them, and will be payable during the initial visa application process.

For many small and medium enterprises, along with businesses working within UK industries currently experiencing a shortage of relevant skill sets such as IT, technology and the medical services, this extra cost could cause a financial strain which they may not be able to withstand.

Thankfully, the government has promised that a reduced rate of £364 per migrant per year will apply to small businesses and charities, as defined by the Immigration Rules.

The Confederation of British Industry (CBI) has warned, however, that the charge could hold businesses back from ‘accessing the talent which they need to grow’.

Does your business rely on the skills of non-EEA employees?

Contact Smith Stone Walters for advice on how best to prepare your business ahead of the upcoming rule changes surrounding overseas hires.