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Contracting Blog

UK Annual Charge on Foreign Skilled Workers

05/10/2017

As of April 2017 UK employers must pay a £1,000 annual charge for each foreign worker they employ with Tier 2 immigration status in an effort to encourage British businesses to recruit and train UK employees.  There are reports that this will be extended to include EU workers once the UK exits the European Union.  
There are strong concerns that taking such an approach to EU skilled workers might result in similar measures from EU countries with regards to British international contractors
Whilst efforts are already in place to improve on the scope of domestic skills the proposals have also come under attack from government business spokesmen and business organisations alike for potentially damaging business growth on the basis that businesses would not hire from abroad if the skills they require could be found at home.  It has further been condemned for limiting businesses at a time when there is already much uncertainty due to the impending exit.
Exemptions do apply to PhD-Level jobs and international students switching from student visas to working visas in an effort retain top level intellectual talent.
 



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