UKVI Changes Small Company Reporting Requirements

small businessAs of 18th July, sponsors must report to UKVI if the size of their business changes from small to medium/large or vice versa. This does not apply to charities.

Why do I have to report this?

The Immigration Skills Charge was introduced in April 2017.Sponsors pay a set amount for each year that they sponsor a Tier 2 (General) or Tier 2 (ICT- long term) migrant.

Small companies pay a reduced rate, currently £356 per year of sponsorship. Medium and large companies pay a higher rate of £1000 per year.

UKVI record the size of the business when they first grant a licence, because small businesses also pay a lower application fee. However, some sponsors will move from being ‘small’ businesses to being ‘medium’ or ‘large’ businesses during the life of their licence (or vice versa). UKVI therefore need to know this in order to charge the correct rate of Immigration Skills Charge.

How do I know if I am a ‘small’ business?

A small company must meet at least two of the following conditions:

  • annual turnover must be not more than £10.2 million
  • the balance sheet total must be not more than £5.1 million
  • the average number of employees must be not more than 50

The definition of a ‘small company’ for this purposes is the same as the definition of a ‘small company’ for the filing of small company accounts. Therefore, as a rule of thumb, when your business starts having to file accounts according to the rules for medium or large companies, then you must make the report. UKVI does not draw any distinction between a medium and large business, so this change does not have to be reported.

When must the report be made?

The report must be mad within 10 days of it taking place. Therefore, the Authorising Officer should be mindful of this duty when the annual accounts are being collated, so that the report can be made in a timely manner.

Therefore, you should also consider whether you are still a small business when you assign a certificate of sponsorship and pay the Immigration Skills Charge.

However, if you do realise that you forgot to report in time m you should make the report as soon as you realise that it is due. You may then have to pay the extra Immigration Skills Charge for certificates assigned after the change.

How do I make the report?

The report must be made through the Sponsorship Management System by a level one user. If you require help with this, please contact your usual Paragon Law contact or Lydia Watkinson at Lydiaw@paragonlaw.co.uk

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