Skills Charge Details Announced
March 22, 2016
Country / Territory
The Home Office has announced details regarding the Immigration Skills Charge that will likely apply as a tax to skilled non-EU foreign workers. The skills charge will likely not become effective until October 2016 at the earliest.
Key Points of the Immigration Skills Charge
Relevant details include the following:
- The skills charge will be set at GBP 1,000 or GBP 364 for small businesses and charities;
- The skills charge will be collected by the Home Office, presumably when a Certificate of Sponsorship is assigned; and
- An exemption will apply to PhD-level jobs and graduates switching from Tier 4 to Tier 2.
Background
The skills levy is part of a package recommended by the government’s Migration Advisory Committee, which as a whole could result in a significant reduction of skilled non-EU migrants in the United Kingdom. The funds will be reinvested in training UK workers.
What This Means for Employers and Foreign Nationals
Employers should be prepared for a skills charge for foreign employees and should plan for the expense in their budgets with their administrative departments.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
