From 6 April 2017, the
Immigration Skills Charge Regulations 2017 are in operation. These Regulations
call for sponsoring employers of migrant workers employed under Tier 2 of the
points-based immigration system to pay a new charge known as the ‘Immigration
Skills Charge’. Here we answer the most commonly asked questions on the
subject.
What is the Immigration Skills Charge?
The Immigration Skills Charge
(ISC) is now levied upon all voluntary and private sector employers of more
than 250 staff. The charge will be £1,000 per certificate of sponsorship per
year and there are concessions for charities and smaller businesses which will
pay a reduced rate of £364.
The ISC is payable on top of the
cost of the certificate of sponsorship. Other fees, including the Immigration
Health Surcharge plus visa application fees, some of which have also increased
as of 6 April, are also payable in addition.
Are There any Exemptions?
Exemptions apply to Tier 2
migrants sponsored before 6 April 2017 applying from inside the UK to extend
their visa; Tier 2 migrants employed in a specified PhD level job; Tier 2
graduate trainees taking the Intra-Company Transfer route; Tier 2 migrants
remaining with the same or a different sponsor; international students
switching from Tier 4 student visas to Tier 2 working visas, and dependents of
Tier 2 workers.
Why has the Charge Been Introduced?
The ISC is intended to decrease
the number of businesses employing migrant workers, hoping that they will
instead recruit and train British staff so that the UK continues to attract
talented students and the most highly qualified migrants. There is also the
goal of protecting the country’s leading reputation for education and research.
Is Anything Else Changing?
As well as the introduction of
the ISC, the minimum salary threshold for workers sponsored under Tier 2
(general) has increased from £25,000 to £30,000 per annum. The threshold for
UK-based graduates will not change from £20,800.
On the contrary, the minimum
salary for non-European Economic Area (EEA) graduate trainees coming to the UK
via the Intra-Company Transfer has dropped from £24,800 to £23,000 per year.
This would suggest that the Government has given due consideration to businesses
transferring overseas branch workers to their UK offices.
The Government may in future also
decide to levy a similar charge to the ISC on employers of EU nationals, if UK
immigration minister Robert Goodwill’s proposal is accepted. However, business leaders
are up in arms about the suggestion, so it may well be side lined.
With Brexit looming and the
Government not stepping forward to reassure employers as to the situation with
their existing EU workers, uncertainty is rife.
Should anything concrete arise we
will of course let you know. In the meantime, should you have any queries
concerning how to deal with employing migrant workers, why not seek advice from
your local bookkeepers?
