Global Payroll — 7 min
Visas and Work Permits — 15 min
With established finance and tech sectors in the capital London, it’s little surprise that many workers and businesses wish to settle in the UK.
If you’re hiring or relocating an existing employee to the UK, you must make sure they have the correct documentation to live and work there. To minimize the hassles of hiring abroad, many businesses partner with an employer of record (EOR) who can legally employ workers on their behalf.
In this guide, we explain the basics of work permits and visas in the UK and cover the various steps you may need to take (depending on your employee’s status). We’ll also touch on how working with an EOR can make compliance simple while hiring abroad.
So let’s dive right in.
If you or your employee fail to comply with immigration rules in the UK, you may receive fines, penalties, unwanted scrutiny, and even face legal issues or reputational damage.
As remote work grows in popularity and governments reassess their existing settlement policies, these risks are growing. For instance, there are many cases of workers on tourist visas overstaying in countries, and creating issues for the companies they work for.
As a result, it’s crucial to ensure that everything is above board, and that your people have the right paperwork in place.
When you hire someone in (or relocate someone to) the UK, you will need to conduct a right-to-work check in line with the UK government’s guidelines. This check establishes whether your employee can work legally in the UK or not.
UK citizens are, by default, eligible to work in the UK (even if they currently live abroad).
Permanent residents with indefinite leave to remain (ILR) status are also eligible to work in the UK, as are those who:
Have settled status in the UK and are citizens of the European Union (EU), Switzerland, Iceland, Norway, or Liechtenstein
Are citizens of the Republic of Ireland
Can prove they have right of abode in the UK
Are stateless and unable to live permanently in a foreign country (subject to application)
If your employee is not a British or Irish citizen or a permanent resident, they will need to acquire a valid visa and a work permit.
Here’s how that works — and what you need to do.
Generally speaking, “work permit” and “work visa” are, for all intents and purposes, interchangeable terms in the UK. To live and work in the country, your employee will need a relevant work visa, which acts as a work permit and gives the holder the right to leave and enter the UK.
There are many types of UK work visas, which we discuss further down.
For your employee to receive a valid work visa, you — as the employer — will first need to sponsor them. To do this, you will need to apply for a sponsor license, where the authorities will assess whether:
Your business is eligible
The job role is suitable for sponsorship
Note that, in some cases, UK immigration officers may even visit your business to conduct suitability checks.
If your application for a sponsor license is successful, you’ll be given a license rating, and you’ll be able to sponsor your employee’s visa application.
To learn more, check out our dedicated guide on relocating employees.
Learn how Remote can help you navigate international employment and enable a compliant and hassle-free move with our expert immigration and relocation services.
As mentioned, there are numerous types of work visas in the UK. Some of the most popular are:
Skilled Worker visa
This visa is for workers in jobs that are deemed to be ‘skilled’ by the UK government. You can check if your employee’s role is skilled using the ONS occupation coding tool.
Note that recipients of Skilled Worker visas cannot be paid either less than £38,700 per year or less than the going rate for the type of work they do, whichever is higher. You must also follow UK rules regarding how many hours per week your employee works.
Global Business Mobility visa
There are several versions of this visa, depending on your employee’s role and experience:
Senior or Specialist Worker visa: This replaces the previous Intra-company Transfer visa, and is designed for existing employees who are relocating to the UK. Your employee must be in an eligible role, and be earning a minimum of £48,500 per year or the going rate for their job (whichever is higher).
Graduate Trainee visa: For employees who are on an eligible graduate trainee scheme.
Service Supplier visa: If your company provides contracted services to a UK business, your employee may be eligible for this type of visa.
Other visas
The UK government also offers several work visas that do not require employer sponsorship or a job offer, such as:
Graduate visa
Youth Mobility Scheme visa
India Young Professionals Scheme visa
Global Talent visa
UK Ancestry visa
As a result, it may first be worth checking to see if your employee is eligible for any of these visas.
You can see a full, detailed list of all valid work visa types on the UK government website.
Each visa type has its own specific eligibility criteria based on relevant factors, such as your employee’s role, experience, and background.
However, as mentioned, almost all work visas require employee sponsorship (unless explicitly stated otherwise).
In the majority of cases, your employee will also need to speak, read, write, and understand English. They will usually need to prove this knowledge during the visa application process.
With the rise of remote work and globally dispersed teams, more and more individuals are adopting the digital nomad lifestyle to help improve their quality of life. These types of employees or contractors work while traveling around the world, often in digital nomad hotspots. In response, governments across the world are implementing new legislation and — in some cases — specialist visas to adapt to this trend, so your workers may inquire about a nomad visa in the UK.
Currently, the answer is no — there is no specialist UK digital nomad visa.
The main purpose of the employee’s stay in the UK should always be for the activities permitted on their visa (e.g. study or tourism).
Most work visas in the UK are geared toward people who stay in the country for long periods. For example, the Skilled Worker visa can last for up to five years.
Since digital nomads tend to want more flexibility to change locations frequently, they generally won’t seek an official work visa. Plus, many of these visas require the employee to work for a UK company, so they may not qualify.
In general, digital nomad employees work in the UK on a tourist visa called a Standard Visitor visa. As there is no specific UK nomad visa, this visitor visa is a fair replacement.
With this authorization, they can stay in the UK for up to six months. And as of January 2023, people on a tourist visa can work remotely for a foreign company while they’re in the UK.
Additionally, there are some work visas that allow people to stay in the UK for a short period of time if they have a specific job.
This permit is meant for those who work in creative industries, like dancers, musicians, and artists. Workers under this visa need a certificate of sponsorship from a licensed sponsor.
They can stay in the UK for up to one year, or for the duration of employment listed in their certificate of sponsorship plus 28 days. They are permitted to hold a second job in the same sector at the same level as their primary role, for up to 20 hours per week.
The exception to these rules is called the Creative Worker visa concession. If workers in creative jobs have a certificate of sponsorship, plan on being in the UK for less than three months, and meet all the other eligibility requirements, they don’t need to apply for a Creative Worker visa.
However, people using this concession who are coming from Ireland to the UK must apply for remote clearance at least 72 hours ahead of their visit.
People who work in horticulture can stay in the UK for up to six months under a seasonal work visa, while poultry workers can use this authorization from October 2 to December 31. They require a sponsor and must meet all the other eligibility requirements.
Under this visa, workers can’t hold a permanent or second job in the UK, and they can’t bring family members with them.
Other options for digital nomads
There are a few other temporary visa options that workers may be eligible to apply for.
The Youth Mobility Scheme visa, for instance, allows people between the ages of 18 and 30 (or 35 in some cases) to work in the UK for up to two years. Since self-employed people are permitted to work on this visa, it can be a great choice for qualifying independent contractors.
Digital nomads working as employees for UK companies or as self-employed people (essentially, independent contractors) aren’t eligible for a Standard Visitor Visa. However, remote employees working for foreign companies can apply for one.
If they’re from certain countries, like the US, they may not need the visa at all if they’re staying in the UK for six months or less. But even if they’re exempt because of their country of origin, they still must meet all the eligibility requirements.
To be considered eligible for a Standard Visitor visa, a digital nomad must:
Provide a passport or eligible travel document
Show that they’ll leave the UK before their visa is up
Show that they’ll be able to support themselves and any dependents while in the UK
Show that they have enough monthly income to afford to leave the country when necessary
Show that they won’t visit the UK for extended periods of time or move there permanently
When applying for a Standard Visitor visa, they need to provide the following information:
The start and end date of their stay
Where they’re staying in the UK
Their current home address
The amount they earn in a year
Any criminal, civil, or immigration offenses they’ve committed
Once in the UK, employees can apply to extend their stay, as long as they don’t remain in the UK for more than six months total. Extending this type of visa costs them £1,000. There are exceptions to this rule, but most (like a patient receiving medical treatment) aren’t relevant for digital nomad situations.
Employees must apply online at least three months before coming to the UK. After they do so, they typically receive a decision within three weeks.
For digital nomads who are constantly traveling across borders, it can be difficult to stay on top of all the laws and regulations in each country they go to. However, it’s crucial that they remain compliant in every location.
As their employer, you can help by ensuring all the information they submit for their visa (if applicable) is correct. Even if they unintentionally make mistakes, their application can be rejected if it contains errors, which can result in them spending more money to re-apply. The consequences of lying on an application include their visa being revoked, and in some cases, a ban from the UK for up to 10 years.
Plus, it can take up to six months for the new application to be reviewed. If they need to make a change, they can contact UK Visas and Immigration.
Here are a few more ways you can help your digital nomad:
Make sure they apply for the right visa. If they plan on staying in the UK longer than six months, they generally need a regular work visa.
Check that they classify themselves correctly as either an employee or independent contractor, and apply for a visa based on their status.
It’s also important to ensure your employee pays their taxes correctly while they’re in the UK, which depends on their residency status. They’re considered a UK tax resident if:
They’ve been in the UK for 183 days or more out of the tax year. This usually comes out to just over six months, so it’s unlikely they’ll meet this criteria.
The UK was their only home for 91 days or more in a row, and they visited or stayed in the UK for at least 30 days out of the year.
They worked full-time in the UK for any period of 365 days, and at least one of those days is in the current tax year. This is also unlikely for digital nomads, who typically change locations frequently.
There are also a few technicalities to consider here. For example, UK residents generally pay taxes on foreign monthly income — unless they’re a non-domiciled resident (meaning their permanent home is a host country outside of the UK), in which case they may not have to.
Not sure how to navigate the ins and outs of the UK’s tax laws? With Remote’s simple five-step onboarding process, you can let our team of experts ensure your employees have the correct work permits, permissions, and visas, in the UK and beyond.
Aside from checking that your digital nomad stays compliant, there are a few ways you can ensure your company follows all the necessary rules and regulations. Before hiring your employee or giving them the okay to work remotely, you can check if they’re eligible to work in the UK by:
Using their share code, which is an online nine-digit number that the UK government gives non-UK citizens to verify their right to work in the UK. Note that British and Irish citizens aren’t eligible to receive this code.
Checking their original documents through a UK government website.
The UK government offers plenty of additional online resources to help you verify if a digital nomad has the right to work in the UK, including this guide.
It’s important to ensure they meet all the requirements and obtain the correct visas ahead of time, as the penalties for employing someone who doesn’t have the right to work in the UK include five years in jail and an unlimited fine.
These consequences cover situations where you know or have reasonable cause to believe that your employee doesn’t have the right to work in the UK, including:
Your employee provides incorrect or false documents
Your employee doesn’t have permission to remain in the UK (perhaps their visa expires), but they don’t leave
If you employ a digital nomad who doesn’t have the right to work in the UK, and you don’t check their information properly, you may have to pay up to £60,000 for each illegal worker. Immigration Enforcement may also make your company’s details public, which can lead to reputational damage.
It’s also essential to stay compliant regarding your digital nomad’s taxes. If they’re not a UK resident, they don’t have to pay taxes on their foreign income, but make sure to verify their status by looking at the UK tax resident qualifications.
Because these types of employees are more likely to use public internet connections or hotspots across the world, it’s crucial to have secure systems that protect your company’s data. With Remote’s HR management platform, you can manage your payroll, taxes, benefits, and more all in one system that remains secure across country borders.
As outlined, your employee needs to be eligible to work in the UK. However, remember that you must also be able to compliantly employ them there. This means that you must either own a legal entity in the UK, or use an EOR to legally hire, pay, and manage workers.
As a foreign business, this can be costly, time-consuming, and inefficient, especially if you later decide to start hiring in other countries too. This is why it’s generally advisable to use a trusted, reliable EOR instead.
To learn more about what EORs are and when to use one, check out our in-depth guide below.
Hiring new employees or relocating existing team members abroad can seem daunting. Apart from staying compliant with local immigration policies and tax practices, you’ll also have to manage onboarding procedures, benefits, and global payroll.
Working with an EOR like Remote can make global hiring quick and easy. An EOR takes on the legal responsibility of hiring, paying, and managing employees, leaving you to focus on business growth. Importantly, our team of employment experts can work with you to ensure you’re operating in compliance with local labor rules, which removes the headache of hiring abroad.
To plan and execute a hassle-free move for your international employees, check out Remote’s Relocation Guide. You can also contact our team for expert advice if you plan to relocate employees internationally.
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