New Immigration Skills Charge

The government announced on 24 March 2016 that it is pressing ahead with the introduction of The Immigration Skills Charge in April 2017. The intended purpose of the charge is to cut down on the number of businesses taking on migrant workers and incentivise training British staff to fill those jobs.

The charge will be levied on employers that employ migrants in skilled areas. It is set at £1,000 per employee per year and a reduced rate of £364 for small or charitable organisations including universities.

There is also an exemption to the charge to ensure key protections for international students in an attempt to keep the brightest and best in the UK which means that it won't apply to PhD-level jobs and international students switching from student visas to working visas - a key protection to help retain the talented workers and students who are vital in helping the British economy grow.

This action follows the Prime Minister's speech on immigration last May (2015) in which he set out the government's plans to boost home-grown talent by encouraging businesses to invest in the skills of British people.

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.