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Right to Work Checks in the UK: A Rising Focus on Compliance Audits
The UK’s immigration landscape has seen significant changes in recent years, particularly in the realm of Right to Work (RTW) checks. The increased focus on compliance audits by the Home Office reflects the government’s drive to tighten immigration controls and ensure that businesses are not employing illegal workers. For employers, this shift places greater emphasis on rigorous adherence to RTW obligations, with failure to comply carrying potentially severe consequences.
Understanding Right to Work Checks
The Right to Work check is a statutory duty for employers to verify that their employees have the legal right to work in the UK. The aim is to prevent illegal working and reduce the incentives for people to enter or remain in the UK unlawfully. Employers must carry out these checks before an employee starts work and follow a prescribed process to avoid liability for any breaches.
The key steps in a RTW check include obtaining original documents from an approved list (such as a passport, visa, or biometric residence permit), checking that the documents are valid and belong to the individual, and making copies to keep on file. Since April 2022, many checks have moved to an online system, particularly for individuals holding biometric cards or settled status under the EU Settlement Scheme. For British and Irish nationals, manual checks remain an option, but the introduction of certified identity service providers (IDSPs) allows for digital verification as well.
The Increasing Scrutiny of Compliance Audits
The rise in compliance audits is an indication that the Home Office is taking a more proactive stance on monitoring RTW practices. Compliance audits are typically unannounced visits where immigration officers assess an employer’s records to ensure they are fulfilling their RTW obligations. These audits can result in significant penalties if businesses are found to be non-compliant, including civil fines of up to £20,000 per illegal worker and criminal liability in cases of intentional non-compliance.
Since Brexit and the end of free movement for EU citizens, there has been a marked increase in these audits as the Home Office seeks to clamp down on illegal working. With EU workers now needing immigration status, many businesses have struggled to adapt to the new processes, making them more susceptible to non-compliance.
The Role of Technology in RTW Compliance
The shift towards digital RTW checks has been a double-edged sword for many employers. On the one hand, the online systems, including the Home Office’s Employer Checking Service, have streamlined the process and reduced the risk of human error. On the other hand, the complexity of the system, combined with frequent updates to immigration rules, has left some employers unsure of their obligations, increasing the risk of compliance failures.
The rise in the use of IDSPs also means that companies can now outsource some aspects of RTW checks, but this does not absolve them of responsibility. The legal liability remains with the employer, meaning businesses must carefully select their service providers and ensure robust internal procedures remain in place.
Preparing for Increased Audits
The best way for employers to prepare for potential audits is by adopting a proactive approach to compliance. This includes conducting regular internal audits of their RTW processes, ensuring that all staff responsible for RTW checks are properly trained, and staying up-to-date with changes in immigration law and Home Office guidance. Clear record-keeping is crucial, as is conducting follow-up checks on employees with time-limited work permission.
Increased compliance audits should be seen as an opportunity to review and strengthen internal procedures. By ensuring robust RTW practices, employers can protect themselves from penalties and contribute to broader efforts to tackle illegal working in the UK.
Conclusion
In conclusion, the heightened focus on compliance audits highlights the importance of adhering to RTW obligations. Employers must be vigilant and prepared for the possibility of an audit, ensuring that they follow the correct procedures and maintain accurate records. As the Home Office intensifies its efforts to enforce immigration law, businesses must stay compliant to avoid costly penalties and reputational damage.
If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.
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SDLT Savings for Pre-Settled Status Holders in the UK Property Market
For individuals holding pre-settled status under the EU Settlement Scheme, purchasing property in the UK may offer distinct financial advantages, particularly regarding Stamp Duty Land Tax (SDLT).
One of the most significant benefits is the potential to mitigate the additional 2% SDLT surcharge applied to non-UK residents. This exemption can represent substantial savings, particularly in high-value transactions, and provides pre-settled status holders with a financial edge in the competitive UK property market. Unlike other foreign buyers, those with pre-settled status could be treated as UK residents for SDLT purposes provided that they have spent 183 days in the UK in the year before completion. This will assist in reducing overall costs and allowing more capital to be directed towards the purchase or investment. If you don’t quite make up the 183 days before completion, you can claim a refund of the 2% payment if you spend 183 days out of a period of 365 days in the UK in the first year after your completion date.
This advantage, combined with the stability pre-settled status offers in accessing competitive mortgage products and navigating legal requirements, makes it an attractive position for property buyers. However, expert legal advice is essential to ensure eligibility and compliance with SDLT rules, safeguarding these savings while streamlining the purchasing process.
For those with pre-settled status, understanding and leveraging this exemption can be a pivotal step towards securing a future in the UK property market while minimising costs.
If you require immigration advice, please contact Jayesh Jethwa using the form below. If you require residential real estate advice, please contact Meera Malde using the form below.
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Is the Innovator Visa Failing and Stifling Immigration?
The Innovator Visa, introduced in 2019 to replace the Tier 1 (Entrepreneur) Visa, was lauded as a progressive initiative to attract innovative entrepreneurs to the UK. Yet, five years on, the scheme is increasingly criticised for falling short of its ambitions. Rather than fostering innovation and encouraging talented entrepreneurs to choose the UK as their base, the Innovator Visa is often seen as restrictive, opaque, and poorly executed. In its current state, the scheme risks stifling the very immigration it seeks to encourage.
The Endorsing Bodies: A Lack of Clear Guidance and Oversight
One of the cornerstone issues with the Innovator Visa is its reliance on endorsing bodies. Applicants must secure endorsement from one of these organisations, which assess whether the applicant’s business proposal is innovative, viable, and scalable. However, the criteria for “innovation” remain poorly defined.
For instance, what constitutes innovation? Is it limited to cutting-edge technology, or could it also include innovative approaches to traditional industries? The endorsing bodies appear to have significant discretion in interpreting this term, resulting in inconsistency and confusion. Entrepreneurs who are clearly innovative in their respective fields may be rejected because their business ideas do not align with the subjective understanding of innovation held by a particular endorsing body.
This lack of definition is compounded by insufficient moderation of the endorsing bodies’ decisions. There is no robust oversight mechanism to ensure consistency or fairness across these organisations. As a result, the process becomes a lottery, with outcomes heavily influenced by which endorsing body an applicant chooses.
The Chilling Effect on Aspiring Entrepreneurs
The uncertainty surrounding the endorsement process is a significant deterrent for many talented entrepreneurs. The process often feels opaque, with limited transparency around decision-making criteria and inadequate feedback for rejected applicants.
Additionally, the focus on innovation, while well-intentioned, may unintentionally exclude promising entrepreneurs whose businesses are more incremental in nature but still offer substantial value. Many potential applicants are discouraged from even applying, fearing that their ideas will not meet the subjective and inconsistent standards of the endorsing bodies.
Moreover, the lack of uniformity among endorsing bodies has led to allegations of bias and arbitrariness. Entrepreneurs who have been rejected often report feeling as though they have no recourse or means to challenge decisions, further eroding confidence in the scheme.
Suggested Improvements
To salvage the Innovator Visa and achieve its original goals, several reforms are necessary:
1. Define Innovation Clearly
The Home Office must provide a clear and comprehensive definition of “innovation” to ensure consistency. Innovation could be broadly categorised to include advancements in technology, novel business processes, and creative solutions to existing problems. This would give applicants and endorsing bodies a more concrete framework to operate within.
2. Standardise the Endorsement Process
Introducing a uniform application process across all endorsing bodies is critical. This could include a centralised set of guidelines, mandatory training for assessors, and a detailed rubric for evaluating applications.
3. Strengthen Oversight Mechanisms
A dedicated oversight body should be established to monitor and regulate the endorsing bodies’ decisions. Regular audits and reviews would ensure fairness and accountability, addressing concerns of arbitrariness.
4. Improve Transparency and Feedback
Applicants deserve clear, detailed feedback on why their applications were rejected. This would not only help them refine their ideas for future attempts but also enhance the credibility of the process.
5. Broaden the Scope of Eligibility
While innovation should remain a key focus, the visa should also accommodate entrepreneurs who bring incremental improvements or novel applications of existing ideas. These businesses often have a significant impact on the economy and deserve equal consideration.
Conclusion
The Innovator Visa has the potential to be a powerful tool for attracting global talent and fostering entrepreneurship in the UK. However, its current implementation is fraught with flaws that undermine its effectiveness. By addressing the lack of definition around innovation, improving the endorsement process, and ensuring greater transparency and fairness, the UK can transform the Innovator Visa into a scheme that genuinely attracts and supports the world’s best entrepreneurial talent.
Without these changes, the Innovator Visa risks failing not only the applicants but also the UK’s ambitions to remain a global hub for innovation and business.
If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.
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