Category: Legal Updates

Significant Changes to Sponsoring Workers: Key Guidance Updates (January 2025)

The UK government has introduced essential updates to the guidance for sponsoring workers under the Skilled Worker route and other visa categories, effective January 2025. These updates aim to clarify sponsor responsibilities, enhance transparency, and ensure compliance with immigration laws, particularly in the process of sponsoring workers.

Key Updates for Sponsors:

  1. Certificate of Sponsorship (CoS) Adjustments
    The updated guidance provides clearer instructions on assigning Certificates of Sponsorship (CoS). Sponsors must ensure that CoS are assigned for roles meeting the definition of a “genuine vacancy.” This adjustment strengthens the framework for sponsoring workers in critical business positions.
  2. Expanded Compliance Duties
    Sponsors face more detailed requirements for maintaining records and reporting any significant changes in a worker’s employment status. This includes updates to job title, salary, or work location, which must be promptly reported to the Home Office to avoid non-compliance.
  3. Improvements to the Sponsorship Management System (SMS)
    Notably, the Sponsorship Management System (SMS) has been upgraded to improve usability and streamline the reporting process. As a result, these changes facilitate a more efficient and seamless experience for employers sponsoring workers.
  4. Clarification on Genuine Vacancy Requirements
    To begin with, employers must demonstrate that sponsored roles are genuine, meet skill level and salary thresholds, and serve a critical business need. Moreover, this clarification is intended to prevent misuse of the sponsorship system and, ultimately, ensure roles are filled appropriately.

What This Means for Employers & Sponsoring Workers

These changes are designed to improve the sponsorship process and ensure alignment with immigration laws. However, failure to comply with these updated requirements could result in penalties, suspension of sponsor licences, or even reputational harm. Employers should proactively review the revised guidance to ensure their sponsorship practices meet the new standards.

How GSC Solicitors LLP Can Help

At GSC Solicitors LLP, our immigration experts are here to guide employers through these changes, ensuring compliance and seamless management of your sponsorship obligations. Whether you need advice on assigning a CoS, understanding compliance duties, or navigating the updated SMS, we’re here to help.

For tailored advice, contact us at 020 7822 2222 or email [email protected]. Stay ahead of the curve and ensure your business is fully prepared for these significant updates.

How the UK’s Inheritance Tax Changes Impact Farmers: Key Insights

The UK government’s 2024 Budget has introduced significant changes to inheritance tax (IHT) regulations, particularly affecting the agricultural sector. Starting April 2026, agricultural estates valued over £1 million will be subject to a 20% IHT rate, a departure from the previous full exemption for such assets. This policy shift has sparked widespread concern among farmers, leading to protests and discussions about its potential impact on family-owned farms.

Impact on Farmers

Historically, agricultural property relief allowed farmers to pass on their estates without incurring IHT, recognizing the unique financial structures within the farming community. The new threshold means that many farmers, who are often asset-rich but cash-poor, may face substantial tax bills upon succession. This could compel families to sell portions of their land to meet tax obligations, threatening the continuity of multi-generational farms. The National Farmers’ Union (NFU) estimates that up to 75% of farms could be affected, a figure contested by the Treasury’s estimate of 25%.
The Times

Legal Considerations

In response to these changes, farmers are exploring legal avenues to mitigate the impact. Options include restructuring estates, establishing trusts, or considering lifetime gifts to reduce taxable estate values. However, these strategies require careful planning to ensure compliance with tax laws and to avoid unintended consequences. Legal experts suggest that challenging the reforms under the Human Rights Act may be possible, but acknowledge the difficulty in overturning the legislation.

GSC Solicitors’ Expertise

At GSC Solicitors, we understand the complexities these tax changes introduce for the agricultural sector. Our Private Client team specializes in tax and estate planning strategies tailored to the unique needs of farming businesses. We offer comprehensive services, including:
Estate Restructuring: Advising on the reorganization of assets to optimize tax positions.
Trust Formation: Establishing trusts to manage and protect family wealth across generations.
Succession Planning: Developing plans that ensure the smooth transition of farm ownership while minimizing tax liabilities.
Given the evolving tax landscape, proactive planning is essential. Our team is committed to providing personalized advice to help you navigate these changes effectively.

Conclusion

The upcoming IHT changes present significant challenges for farmers, potentially impacting the sustainability of family-owned farms. Engaging in strategic estate planning now can help mitigate adverse effects and secure the future of your agricultural business. Contact GSC Solicitors today to discuss how we can assist you in adapting to these developments.

UK Budget 2024: Non-Dom Tax Updates

The UK Budget 2024 has introduced significant changes affecting non-domiciled residents (non-doms), reflecting the government’s focus on increasing tax transparency and accountability. For high-net-worth individuals (HNWIs) holding non-dom status, the new measures may lead to increased tax liability, especially for those with income derived from international assets.

Key Changes for Non-Doms:

Heightened Compliance Requirements: Non-doms will need to adhere to stricter reporting standards for foreign income and gains, ensuring accurate declarations to HMRC.
Potential Tax Liability on Global Income: The changes may increase the tax burden on income generated from international assets, prompting many high-net-worth individuals to reassess their estate and tax planning strategies.
Increased Scrutiny on Asset Structuring: The government’s commitment to tackling tax avoidance means non-doms with complex cross-border structures should ensure compliance to avoid potential penalties.

Strategic Tax Planning is Crucial:

Given the evolving landscape, non-doms must act proactively to safeguard their wealth. Leveraging strategies like trusts, gifts, or charitable donations could help mitigate tax liabilities while ensuring compliance with new regulations.

Why GSC Solicitors Can Help:

Our Private Client team specialises in advising non-doms on cross-border asset management, tax compliance, and estate planning and also advice on bringing funds into UK prior to April 2025. With years of expertise in navigating complex regulatory changes, we offer tailored solutions to ensure your wealth is structured efficiently and remains compliant with UK tax laws.
Contact us today for expert advice on how the 2024 Budget may impact your non-dom status and financial planning.

Capital Gains Tax Changes in the 2024 UK Budget: Implications for Small Businesses and Investors

The 2024 UK Budget has introduced significant changes to capital gains tax (CGT) rates and thresholds, directly affecting small business owners, property investors, and individuals selling high-value assets. These changes signal the government’s focus on addressing fiscal gaps while encouraging strategic planning among taxpayers.

Key Capital Gains Tax Changes:

  1. Increased CGT Rates:
    • The lower CGT rate has risen from 10% to 18%, impacting basic rate taxpayers.
    • The higher CGT rate has increased from 20% to 24%, affecting higher and additional rate taxpayers.
    • Gains on residential property sales, however, remain taxed at 18% (basic rate) and 28% (higher rate), unchanged from previous years.
  2. Business Asset Disposal Relief (BADR):
    The tax rate for disposals qualifying under BADR has increased from 10% to 14% on the first £1 million of gains. This rate is set to align with the lower CGT rate of 18% from April 2026. Entrepreneurs planning to sell their businesses may need to reassess their tax liabilities under these revised rates.
  3. Annual Exempt Amount (AEA):
    The CGT annual tax-free allowance, which was reduced to £3,000 in the previous budget, remains unchanged. This reduction significantly limits the tax-free gains available to individual investors and small business owners.

Impact on Small Businesses and Investors

For Small Business Owners:
The changes to BADR and increased CGT rates present challenges for entrepreneurs looking to exit their businesses or transfer ownership. Strategic planning, such as timing the sale of business assets or leveraging other reliefs, will be crucial to managing higher tax bills.

For Property Owners and Investors:
Higher CGT rates on non-residential assets, coupled with the unchanged rates on residential property, may affect the profitability of selling investment properties or liquidating other capital assets. Property investors will need to assess the timing of sales to optimise their tax position.

For High-Net-Worth Individuals:
Those managing diversified portfolios with significant gains from shares, collectibles, or other investments will face a higher CGT burden. Cross-border investors with UK assets should also take note of compliance requirements under these updated rules.

Why GSC Solicitors Can Help

Navigating the complexities of the CGT regime requires a tailored approach to tax planning. Our Corporate & Private Client teams specialise in:

  • Advising small business owners on optimising their tax position during business disposals.
  • Structuring property portfolios to mitigate CGT liabilities.
  • Providing bespoke advice for high-net-worth individuals with cross-border assets.

Contact us today to ensure your financial strategy aligns with the latest tax regulations.

A Comprehensive Guide to the UK eVisa System: The Digital Transformation of Immigration Status

Introduction

The UK government is in the process of transforming its immigration system, replacing traditional physical documents with eVisas, a digital proof of immigration status. This move is part of the UK’s commitment to a fully digital immigration experience by 2025. With this system, biometric residence permits (BRP), biometric residence cards (BRC), passport visa stickers, and ink stamps will be phased out and replaced with secure digital records accessible through an online UK Visas and Immigration (UKVI) account. Here’s everything you need to know about the shift to eVisas and how to navigate the new system.

What is an eVisa?

An eVisa is a digital record of a person’s immigration status in the UK, designed to replace physical documents previously used to prove legal residence and rights. The eVisa system provides an electronic way to access and share immigration status details through a secure UKVI account. With an eVisa, individuals can easily confirm their immigration status for employers, landlords, and public service providers without needing to produce physical documents.

Key Benefits of the eVisa System

The eVisa system brings several advantages for users and the UK immigration infrastructure:
Security: Digital records reduce the risk of fraud, loss, or damage that physical documents are prone to.
Convenience: Individuals can access their immigration status online at any time, streamlining verification processes for employment, renting, and public services.
Efficiency: Digital records eliminate the need to wait for physical documents, making the entire immigration experience faster and more accessible.
Enhanced Privacy: eVisas allow individuals to share only the information needed for specific situations, protecting personal data.

Transition Timeline and Action Required

The transition to eVisas has already started. Many individuals with immigration status in the UK, such as those granted pre-settled or settled status under the EU Settlement Scheme, have already received eVisas. Here’s what holders of different document types need to do:
Biometric Residence Permit (BRP) Holders: BRPs will expire on December 31, 2024. BRP holders should set up a UKVI account at www.gov.uk/eVisa to access their eVisa, which will replace their BRP.
Biometric Residence Card (BRC) Holders: BRC holders with settled status under the EU Settlement Scheme already have an eVisa. They need only keep their UKVI account updated with current passport and contact details.
Passport Ink Stamps or Visa Stickers Holders: Applicants should make a no time limit application, once granted they will be given access to the eVisa system automatically.
No fees are associated with creating a UKVI account, and setting it up will not affect a person’s current immigration status. To ensure a seamless transition, it’s recommended that all affected individuals complete this setup as soon as possible.

Steps to Create a UKVI Account

Visit the Official eVisa Page: Go to www.gov.uk/eVisa to begin setting up a UKVI account.
Verify Identity: BRP holders can use their existing document details to create an account, while those with legacy documents may need to use additional information, such as their passport or visa application number.
Access and Manage Your eVisa: Once the account is active, users can log in to view, update, and share their immigration status as needed.

Proving Immigration Status with an eVisa

eVisas make it simple to prove immigration status through the UKVI account. By generating a secure share code, individuals can provide temporary access to their immigration information for third parties, such as employers and letting agents. This eliminates the need to carry and present physical immigration documents for everyday transactions, offering a streamlined alternative.

Support for Digitally Excluded and Vulnerable Groups

Recognising that not everyone may have easy access to digital systems, the UK government has established support mechanisms to assist those who are digitally excluded or vulnerable. These include:
Assisted Digital Service: Provides phone and email support to help with UKVI account setup and eVisa access.
Partner Organisations: A £4 million fund has been allocated to community organisations to help vulnerable individuals transition to eVisas.
Nominated Helpers: Individuals who need assistance managing their eVisa account can authorise a helper or proxy to handle their account on their behalf.

International Travel with an eVisa

Although the eVisa system simplifies many processes within the UK, individuals should still carry valid physical documents, such as passports, when travelling internationally. Travellers can ensure their eVisa is linked to the correct passport by updating their UKVI account with any new passport details.
To further streamline the travel experience, airlines, ferries, and train operators are integrating systems to automatically verify passenger immigration status with UKVI records. This will enhance border security and simplify travel for those with digital immigration records.

Future of eVisas and Digital Immigration

The UK is committed to moving toward a fully digital border and immigration system. By 2025, all physical immigration documents will be replaced by eVisas, setting a new standard in immigration management. This shift not only modernises the process but also aligns with broader societal moves towards digitalisation.
The eVisa system will continue to expand, with ongoing improvements and regular updates to ensure that it remains accessible, secure, and user-friendly. Future plans include trialing contactless border checks using biometric data, like facial recognition, as the government explores ways to further simplify and secure border control.

Final Thoughts

The UK’s move to a fully digital immigration system represents a significant advancement in how immigration status is managed, accessed, and shared. For individuals currently holding physical documents, setting up a UKVI account and transitioning to an eVisa is a straightforward process that offers enhanced convenience and security.
For more information and step-by-step guidance, visit www.gov.uk/eVisa. Should you encounter any issues, assistance is available through the Home Office’s support channels to ensure everyone can successfully transition to the eVisa system.

How the UK Budget 2024 Impacts Inheritance and Capital Gains Tax for High-Net-Worth Clients

The 2024 UK Budget introduces several critical changes to inheritance and capital gains tax that will affect high-net-worth individuals (HNWIs) and their estate planning strategies. The IHT threshold freeze remains in effect, meaning that while the threshold hasn’t increased, asset values are likely to rise, indirectly increasing the IHT burden on estates over time. This can especially impact clients with high-value assets, such as property portfolios or significant business interests. The continued freeze makes it essential for HNWIs to regularly review and adjust estate plans to avoid unexpectedly high tax liabilities for their beneficiaries.

For those managing cross-border wealth, the budget has also introduced heightened compliance measures and more rigorous reporting requirements, particularly for non-domiciled residents. As these reporting requirements evolve, clients with global assets will need to ensure their estates are structured to maximise tax efficiency across multiple jurisdictions. Establishing trusts, gifts, and charitable donations are options that could be strategically employed to mitigate the rising IHT burden, allowing clients to leverage potential tax reliefs for qualifying contributions.

The changes to capital gains tax (CGT) will affect property owners, investors, and anyone planning to sell high-value assets in the near term. By maintaining the CGT thresholds without adjustment, the budget places a greater tax burden on those seeking liquidity from assets. With property values expected to appreciate further, property owners may face higher CGT on sales, potentially impacting investment strategies for landlords and real estate investors.

Why GSC Can Help:
The intricacies of the IHT and CGT changes require a thorough review of each client’s financial landscape. Our team at GSC Solicitors specialises in high-net-worth tax planning, estate structuring, and international compliance, ensuring that clients not only remain compliant but also make informed decisions to protect their legacy and optimise tax efficiency. Contact our Private Client team for a bespoke consultation on your estate planning and wealth management needs.

Guide to the Senior or Specialist Worker Visa: Essential Insights by GSC Solicitors

The Senior or Specialist Worker Visa offers a pathway for international businesses to transfer key employees to their UK operations. This visa, under the Global Business Mobility (GBM) category, allows companies to bring senior managers or specialists to the UK for temporary assignments, replacing the previous Intra-Company Transfer (ICT) route. At GSC Solicitors, we guide clients through every step of the process to ensure compliance and success. Below, we outline the key elements of the Senior or Specialist Worker Visa, from requirements to application procedures.

What is the Senior or Specialist Worker Visa?

The Senior or Specialist Worker Visa enables foreign employees to work in the UK by transferring to a UK-based branch of their overseas employer. This route is one of five under the GBM category, aimed at facilitating the mobility of business professionals. It provides a structured way for companies to bring specialised talent to the UK for strategic roles, helping businesses grow and adapt to international demands.

Key Benefits of the Senior or Specialist Worker Visa

The visa allows holders to:

  • Work in the UK: Undertake the job role for which they’re being sponsored, for the specified duration.
  • Travel and Study: Visa holders can travel freely in and out of the UK and engage in study programs, provided they don’t interfere with their work obligations.
  • Bring Dependents: Accompanying family members can join the visa holder, making it easier for employees to relocate without disrupting family life.

Requirements for the Senior or Specialist Worker Visa

To qualify for the visa, applicants must meet several criteria:

1. Sponsorship

  • Applicants need a Certificate of Sponsorship (CoS) from a licensed UK sponsor. This sponsor must be a business legally operating in the UK, authorised by the Home Office.
  • The CoS will detail the job role, salary, and duration of the assignment, and it must be issued no more than three months before the application date.

2. Job and Skill Level

  • The job must be at an eligible skill level as determined by the UK’s immigration rules. Each occupation has a corresponding code, and it’s crucial for the job description to match the correct code to avoid refusal.

3. Salary Thresholds

  • The minimum salary requirement for a Senior or Specialist Worker is £48,500 per year.
  • For high earners (earning £73,900 or more), there are additional benefits, such as extended periods of stay in the UK and reduced requirements for previous work with the sending business.

4. Financial Requirements

  • Applicants must demonstrate that they can support themselves financially upon arrival. Alternatively, the sponsor can certify maintenance, ensuring the worker will be adequately supported for at least the first month of employment.

5. Validity and Extension

  • The maximum stay for those earning below £73,900 is up to five years within a six-year period. High earners can stay up to nine years within a ten-year period.
  • While this visa doesn’t directly lead to settlement, holders may switch to other visa routes, such as the Skilled Worker Visa, to pursue long-term residence in the UK.

Sponsor Requirements

A UK business that wants to bring a senior or specialist worker must hold an A-rated sponsor licence from the Home Office. The sponsor’s obligations include:

  • Applying for a Sponsor Licence: Companies must demonstrate lawful operations, a genuine need for the transferred worker, and compliance with all legal standards.
  • Assigning a CoS: Once approved, sponsors can issue a Certificate of Sponsorship to the worker. The CoS must clearly outline the nature of the job and verify that the worker meets the necessary criteria.
  • Immigration Skills Charge: The sponsor is responsible for paying the required Immigration Skills Charge to bring a senior or specialist worker to the UK.

Application Process for the Senior or Specialist Worker Visa

The application process involves the following steps:

  1. Obtain a CoS: The sponsoring company must assign a Certificate of Sponsorship to the worker, detailing the role and salary.
  2. Submit an Online Application: Using the CoS reference number, the applicant completes an online application form.
  3. Provide Supporting Documents: The applicant may need to submit documents such as proof of employment and identification.
  4. Pay the Required Fees: This includes the visa application fee and health surcharge. For high earners, the process may be streamlined, allowing quicker access to the UK.

Costs and Fees

The total cost of a Senior or Specialist Worker Visa will include:

  • Visa Application Fee: This varies depending on the duration of the stay and where the application is made (inside or outside the UK).
  • Immigration Health Surcharge: This fee grants access to the UK’s National Health Service (NHS) during the worker’s stay.
  • Certificate of Sponsorship: A fee of £239 to issue a CoS for the worker.

Can Dependents Join the Visa Holder?

Yes, dependents (spouse/partner and children under 18) can join the visa holder. Each dependent must apply separately, and the same financial and health requirements apply to ensure their stay in the UK is supported.

Tips for a Successful Application

  1. Ensure Accuracy: All details on the CoS must be accurate and reflect the job role correctly to avoid delays or refusals.
  2. Understand the Skill and Salary Requirements: Make sure the job role matches the designated occupation code and meets the minimum salary requirements.
  3. Seek Legal Guidance: Navigating UK immigration law can be complex, especially when transferring senior or specialist staff. Consulting with an immigration law expert ensures compliance and reduces the risk of rejection.

Summary

The Senior or Specialist Worker Visa is a valuable route for international companies looking to bring skilled professionals to the UK temporarily. It supports the seamless transfer of senior and specialist employees, fostering business growth and international collaboration. However, understanding the legal and procedural requirements is crucial for both the sponsor and the worker to avoid potential issues.

Need Assistance?

Navigating the requirements for the Senior or Specialist Worker Visa can be challenging. GSC Solicitors provides expert advice on sponsor licence applications, Certificates of Sponsorship, and immigration compliance to make the process smoother. Contact our immigration specialists today to discuss how we can assist you in bringing top talent to your UK business.

For further guidance, contact our Immigration Advisor, Denis Menabit at [email protected].

 

Senior or Specialist Worker Visa FAQs

Q: Can I switch to a different visa route while in the UK on a Senior or Specialist Worker Visa? A: Yes, you can switch to other visa categories, such as the Skilled Worker Visa, if you meet the eligibility requirements.

Q: What happens if the salary threshold changes while I am in the UK? A: You must maintain the appropriate salary throughout your stay. Changes in the law may affect your eligibility for extensions, so it’s best to seek advice if unsure.

Q: How long does it take to get a decision on my visa application? A: Standard processing times vary but generally range from 3 to 8 weeks, depending on whether you apply from within the UK or abroad.

Additional Resources

Autumn Budget 2024: Highlights

It has been a long anticipated Budget from a personal tax perspective, with the expectation that Rachel Reeves would introduce substantial changes to increase taxes.

As highly anticipated the government have increased Employer Class 1 National Insurance and the National Living Wage having the biggest impact for businesses in the short term. They also as planned introduced VAT on private school fees.

Below we discuss the main changes for private clients.

Capital Gains Tax (CGT)

One of the most immediate and substantial changes was an increase in CGT.

  • The lower tax rate – a rise from 10% to 18%,
  • The higher tax rate – a rise from 20% to 24%,

The above increase however does not apply to gains on residential property.

Those disposing of a business or a significant shareholding via a sale or succession were able to claim Business Asset Disposal Relief (BADR) so that the first £1million of gain is subject to only 10% CGT. This is now going to increase to 14% from 6 April 2025 and match the lower rate of 18% from 6 April 2026.

Inheritance Tax (IHT)

In the run up to the announcement there was a lot of concern over the potential changes to IHT. It is important to note that:-

  • The current IHT thresholds will remain unchanged until 5 April 2030 (£325,000 nil rate band plus £175,000 residence nil rate band) and therefore still not taking into account rising inflation.
  • Inherited pensions will become subject to IHT from April 2027. Most pensions are currently exempt from an IHT and are not classed as part of an estate for Inheritance tax purposes.
  • Assets that qualify for business property relief (and also agricultural relief) used to qualify for 100% relief from IHT allowing business owners to pass their business onto the next generation with no tax. From April 2025 the 100% relief will now only apply to the first £1million, falling to 50% thereafter.
  • The changes to business property relief and agricultural relief will also apply to trusts holding these types of assets. Therefore, exit and ten year charges will be affected for relevant property trusts.
  • The Chancellor also plans for the 50% relief to apply across the board from shares “not listed” on the stock exchange, like AIM.

Stamp Duty Land Tax (SDLT)

The Higher Rates for Additional Dwellings (HRAD) surcharge on SDLT will be increased by two percentage points, from 3% to 5% for those buying second homes. This will be effective from 31 October 2024. The increase in tax rate is intended to give first time property buyers an advantage.

Abolishment of ‘non-dom’ Regime

As planned and reported previously the current non-dom tax status will be abolished from 6 April 2025.

In its place there will be the new Foreign Income and Gains (FIG) Regime that offers 100% relief on foreign income and gains for new arrivals to the UK during their first four years of tax residence whether or not they remit the income to the UK, provided they haven’t been UK tax residents in the previous 10 years.

Temporary Repatriation Facility for ‘non-doms’ claiming the remittance basis will allow ‘non-doms’ who previously claimed the remittance basis to continue to remit foreign income and gains at a reduced rate for three tax years, starting from 6 April 2025.

Final Thoughts

The Budget has been tough for small and medium sized business owners. With the increase in National Insurance and National Living Wage it has increased the ability for businesses to make a profit. In addition now the changes to CGT and IHT this only restricts the business owners ability to generate wealth from their enterprise and pass it on to the next generation.

With these changes it is now even more important to consider estate planning. If you would like to discuss these changes or your structures more generally, please contact GSC Solicitors LLP and we would be delighted to assist.

Written by James Cohen, Partner in the Private Client Team
For further information or to discuss your tax planning, please contact James Cohen at 0207 822 2222 or via email at [email protected]. James or a member of the Private Client team would be happy to assist with your estate planning and help you navigate the latest tax changes effectively.

 

 

A Guide to Self-Sponsorship as a Skilled Worker: Navigating the UK’s Immigration System

For international entrepreneurs or individuals looking to establish themselves in the UK, self-sponsorship under the Skilled Worker visa provides a unique pathway. This allows business owners or potential founders to set up a company in the UK and sponsor themselves as a Skilled Worker. At GSC Solicitors, we specialise in guiding clients through the complex requirements and legalities of self-sponsorship. Here’s a step-by-step breakdown of how to self-sponsor as a Skilled Worker in the UK:

Stage 1: Securing a Sponsor Licence

The first step in self-sponsorship is ensuring that your UK-based company has a valid sponsor licence. Without this, your business cannot sponsor any workers, including yourself. To qualify, the company must be lawfully operating in the UK and demonstrate that it is a genuine business.

Key Requirements:

  • Company Registration: Your business must be registered with Companies House.
  • Documentary Evidence: When applying for a sponsor licence, you’ll need to provide specific documentation proving the company’s operations and compliance with UK law. This includes:
    • Employer’s liability insurance of at least £5 million.
    • Proof of registration with HMRC.
    • VAT registration certificate (if applicable).
    • A certified copy of recent annual accounts.
    • Bank statements from a UK-regulated financial institution.

It’s crucial to follow Home Office guidelines when presenting these documents. Failure to comply can lead to delays or refusals. GSC Solicitors can assist in ensuring that all paperwork is correctly submitted to avoid any complications.

Designating Key Roles for the Licence:

After securing the sponsor licence, your company must appoint key personnel to manage its sponsorship duties. These roles include:

  • Authorising Officer: Responsible for the actions of the company and overall compliance.
  • Key Contact: The primary point of communication between your company and the UK Visas and Immigration (UKVI).
  • Level 1 User: Manages day-to-day operations related to the sponsor licence.

To ensure compliance with the Home Office, the individuals assigned to these roles must meet strict criteria, particularly in terms of immigration status and suitability.

Stage 2: Applying for a Certificate of Sponsorship (CoS)

Once your company has obtained a sponsor licence, the next step is securing a Certificate of Sponsorship (CoS). This digital document outlines the specifics of the job you, as the worker, will be doing in the UK. The CoS must contain details about your role, salary, and employment terms.

Steps to Obtain a CoS:

  • If you’re already in the UK, your company will need to issue an undefined CoS.
  • If you’re applying from outside the UK, your company must request a defined CoS, which is specific to overseas applications.

The CoS must align with the appropriate occupation code, as outlined in the Home Office’s Skilled Occupations list. Choosing the correct code is critical to avoid potential refusals, which can occur if the role description does not match the occupation code selected.

Stage 3: Skilled Worker Visa Application

After receiving the CoS, you can apply for a Skilled Worker visa. The visa application process involves meeting several essential criteria, including:

  • Genuine Vacancy: The job must be a legitimate position that aligns with your company’s needs.
  • Skill Level: The role must meet a specific skill level, usually at or above RQF Level 3.
  • English Language Requirement: You must demonstrate proficiency in English, typically at CEFR Level B1.
  • Salary Threshold: Your salary must meet or exceed the threshold of £26,200 per year or £10.75 per hour (whichever is higher), though this will increase to £38,700 from April 2024.

Failure to meet these criteria can result in your application being rejected. Our experienced immigration lawyers can help ensure that your application satisfies all the requirements for a smooth process.

Understanding the Legalities of Self-Sponsorship

While self-sponsorship offers great opportunities for entrepreneurs, the process is complex and comes with significant responsibilities. Mismanagement of the sponsor licence, CoS, or visa applications can lead to severe consequences, such as the revocation of your licence or denied entry into the UK.

Moreover, it’s important to maintain compliance throughout your time in the UK, particularly regarding salary payments and fulfilling the obligations tied to your CoS. Any breach in compliance can risk your immigration status and your business’s ability to continue sponsoring migrant workers.

Why Choose GSC Solicitors?

Navigating UK immigration laws, especially self-sponsorship, requires expert guidance. At GSC Solicitors, we offer:

  • Tailored advice on obtaining sponsor licences and Certificates of Sponsorship.
  • Detailed support to ensure that your business meets all Home Office regulations.
  • Comprehensive guidance through every step of the Skilled Worker visa process, from choosing the correct occupation code to salary compliance.

Conclusion

Self-sponsorship as a Skilled Worker can open doors for individuals looking to start or grow a business in the UK. However, it’s essential to follow every step of the process carefully and ensure compliance with UK immigration law. If you’re considering self-sponsorship or have questions about the process, our team at GSC Solicitors is here to help. Contact us today for expert assistance in navigating the complexities of UK immigration law.

For further guidance or assistance, contact GSC Solicitors at [email protected].

UK Immigration Law Changes 2024: Key Updates and Their Impact on Businesses

The UK government has introduced several significant changes to immigration laws in 2024, which will impact businesses that rely on foreign talent. Key updates include an increase in the Immigration Health Surcharge (IHS) from £624 to £1,035 per year, substantially raising the cost of securing visas for foreign workers. Additionally, fines for employing illegal workers will triple, with first offenses now attracting penalties of £45,000, and repeated breaches facing fines of up to £60,000.

Skilled Worker Visa Salary Requirements:

The salary threshold for skilled worker visas will increase from £26,200 to £38,700. This significant rise is intended to reduce the number of skilled worker visa applications and address concerns over immigration levels. However, it will also pose challenges for businesses that rely on overseas talent to address domestic labor shortages.

Impact on Businesses:

  • Increased Costs: The higher IHS and fines mean businesses will face increased costs when hiring foreign workers. This could impact budget allocations and financial planning.
  • Talent Acquisition Challenges: The increased salary requirements may make it more difficult for businesses to attract and retain skilled foreign talent, particularly in industries experiencing domestic labor shortages.
  • Compliance Pressures: Ensuring compliance with the new regulations will be critical to avoid hefty fines and legal complications. This will require rigorous internal audits and possibly consulting with immigration experts to navigate the complexities of the new laws.

Preparation Strategies:

To prepare for these changes, businesses should reassess their hiring practices and budget allocations for immigration-related expenses. Reviewing and adjusting compensation packages to meet the new salary thresholds will be essential. Additionally, exploring alternative talent pools, such as domestic workers or other visa categories, can help mitigate the impact of the new regulations.

Staying informed and proactive in adapting to these changes will be crucial for maintaining operational efficiency and compliance in 2024 and beyond.