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Proposed immigration rules could affect IT sector

Due to a severe skills shortage currently being experienced by the UK’s IT industries, many businesses rely heavily on the expertise of skilled migrant employees and the Tier 2 immigration system which enables them to come here.

Hiring non-EEA professionals in the UK is becoming increasingly expensive, however, and these industries may soon find themselves priced out of the migrant-hire market.

Changes to the UK’s Immigration Rules have recently been proposed by the Migration Advisory Committee (MAC) and should the government choose to act upon these recommendations, the UK’s immigration route for skilled professionals and the industries relying on it could suffer as a result.

And none more so than the IT and technology sectors which currently depend upon on Tier 2 Intra-company Transfer (ICT) route for migrant skills and expertise.

Currently, the Tier 2 (ICT) route is a Tier 2 subcategory which allows multinational companies to transfer key personnel from overseas to their UK branch for a temporary period of time. Those applying to enter the UK using this route must be able to satisfy the qualifying period requirement by proving they have at least 12 months of experience working for their overseas employer prior to submitting their application.

The MAC has now recommended that the qualifying period for Tier 2 (ICT) applicants be changed from 12 months to a period of two years; a measure which could have substantial financial and organisational effects on many Tier 2 sponsors.

Unfortunately, this is not the only change to the Tier 2 (ICT) route which the MAC has proposed.

In addition to doubling the qualifying period for Tier 2 (ICT) applicants, the MAC has also proposed the introduction of a new Immigration Skills Charge to sit alongside the Immigration Health Charge for this type of application. A new Tier 2 subcategory may also be introduced specifically for third-party subcontracting arrangements, whereby the minimum salary threshold for this type of project work could be set at £41,500.

Only time will tell whether these measures will be implemented or not, but employers are best advised to brace themselves for a hefty increase in the basic costs of recruiting the expertise of Tier 2 migrant professionals.

Contact Smith Stone Walters for more information on the MAC’s proposals and advice on how to reduce the potential effects of the MAC’s proposals on your personal or corporate UK immigration strategy.

More on this topic:

Extra skills levy for IT and tech professionals

Changes ahead for Tier 2 ICT visa route

Increased Tier 2 salary threshold proposed


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