News

25.01.2024 - Changes to treatment of some late applications to the EU Settlement Scheme in new guidance

The Home Office has introduced some flexibility for some categories of people who are applying late to the EU Settlement Scheme, after the rules were severely tightened in August last year.

The new version 22 of the guidance for caseworkers on the EU Settlement Scheme applies to decisions made from 16 January 2024 and also makes some other changes.

Changes for those who hold permanent residence and are applying late

In the section “Examples of reasonable grounds” for making a late application, further explanation and two new examples have been given under “Circumstances which will not generall...

22.01.2024 - How to avoid the minimum income requirement for partners under spouse and family visas

Since the initial announcement, we have learned that the increase will be staggered with the first increase being to £29,000 and will come in spring 2024. The next level of £38,700 will be reached in 2025.

We do not yet have the draft immigration rules that will make the increase law but it is important to start thinking now about how couples can avoid the new minimum income requirement.  

Below we look at the various ways that applications can be made while avoiding the need to meet the minimum income requirement.

Apply before spring 2024

We have been told that the new minimum income requirem...

19.01.2024 - HMRC challenges UK VAT status of online traders

HMRC will contact businesses believed to be non-established taxable persons (NETPs) for VAT purposes. The business will then have 30 days to challenge HMRC’s decision.

HMRC will send a one-to-many letter from late January 2024 to businesses that it believes are NETPs (non-established taxable persons) for UK VAT purposes.

The businesses targeted are likely to be those using either an agent or serviced office address as their place of registration.  

In the letter, HMRC asks the business to provide evidence that it is established in the UK for VAT purposes if it disagrees that it is a NETP (non-...

18.01.2024 - Immigration Health Surcharges increases with effect from 6 February 2024

As we previously reported on 09 January of this year regarding the increase of the immigration health surcharge, the Immigration (Health Charge) (Amendment) Order 2024 passed into law on 16 January 2024.

The new rates will apply to applications made on or after 6 February 2024, which is 21 days after the order became law.

The ‘normal’ surcharge will increase from £624 per year to £1,035 per year of the visa being applied for.

The lower rate surcharge (for such visas as Student, Student dependant, Youth Mobility Scheme and children aged under 18 on the date of application) will rise from £470 p...

16.01.2024 - Payrolling employer-provided benefits to be mandated from 2026

HMRC has announced that payrolling benefits and paying class 1A NIC on BIK via payroll will be mandatory from April 2026. The aim is to reduce administrative burdens by simplifying and digitising reporting and paying tax on all employment benefits, removing the need for four million P11D returns and forms P11D(b). 

While ICAEW previously recommended making it possible to payroll beneficial loans and employer-provided accommodation, it has also highlighted complexities involved in payrolling BIK.  

For example, although payrolling BIK removes the need for employers to submit forms P11D for thes...

09.01.2024 - 66% increase in Immigration Health Surcharge to be implemented no earlier than 31 January

The House of Commons delegated legislation committee will debate the surcharge increase this Wednesday.

We would like to remind that the draft order was published in October 2023 and stated that it will come into force either on the 16th January 2024 or the twenty-first day after the day on which it is made depending on which date was the later.

A delegated legislation committee of the House of Commons will be debating the draft order on Wednesday, 10 January at 4.30pm. This would mean that 31 January is now the earliest day that the increase can take effect.

The surcharge will be increased fr...

01.01.2024 - New immigration restrictions on overseas students bringing family to UK come into force today

A key element of Rishi Sunak's plan to reduce legal migration to the UK comes into effect today - but he still faces fights with his backbenches to reduce both legal and illegal migration ahead of a general election expected this year.

Under the new rules, any international students starting courses from this month will not be able to bring dependants to the UK, unless they are on postgraduate research courses or courses with government-funded scholarships.

The changes were first announced last May as part of the government's bid "to prevent misuse of the visa system".

Ministers say it will se...

28.12.2023 - New budget to be delivered on 6 March 2024, confirms Treasury

Chancellor Jeremy Hunt will deliver the 2024 spring Budget on 6 March, the Treasury has said.

It will include the government's tax and spending plans as well as new growth and borrowing forecasts.

It could be the last chance for the government to announce significant changes to tax policy before the general election.

Reports suggest there may be further tax cuts as the Conservatives try to close a major deficit in the polls.

The chancellor used his last big fiscal speech, the Autumn Statement, to extend tax breaks for business and cut National Insurance.

However, those policy decisions did not...

28.12.2023 - British-born man who has never left UK faces deportation

A 28-year-old British-born man who has never left the country has spoken of his devastation after being told he will be deported to Portugal, from where his parents arrived more than 30 years ago, under a post-Brexit policy towards EU nationals convicted of crimes.

Dmitry Lima was born in Lambeth, in south London, does not speak Portuguese and has never travelled abroad but he was given a deportation order by the Home Office after serving a prison sentence for drugs offences and for carrying a Taser.

Lima, who had no previous convictions, is appealing against the deportation decision on the gr...

22.12.2023 - New £38,700 income visa rule will be introduced in early 2025, confirms Rishi Sunak

The rise from the current £18,600 level was announced earlier this month and had been scheduled for the spring.

However, the government has rowed back and now says the increase will come in two stages.

Next spring, the threshold will rise to £29,000, with the further rise not applying until the following year.

Speaking in Lincoln, Mr Sunak defended the timetable, saying: "The principle here is absolutely right that if people are bringing dependents into this country as part of their family, they must be able to support them.

"We're doing exactly as we said we would. We're just doing it in two ...