Skilled workers compliance

New Tier 2 ICT Visa Changes in 2021 in the UK After Brexit Transition

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Having the ability to transfer between branches in different countries for the same employer can open up a world of opportunities. Whether you want to improve your foreign language skills, enjoy another culture, travel in and explore another part of the world, or you just need to carry out a project for your employer in another geography, the Intra-company Transfer visa may be for you. The ICT visa has been in existence for several years under the Tier 2 skilled worker route, however, from 2021, it is expected to change as part of the new post-Brexit points-based immigration system. In this article, we will review the changes to the intra-company visa for 2021, and whether these will have any meaningful impact for employees and employers.

What is the Tier 2 ICT Visa?

The ICT visa, which has a graduate and non-graduate variant, is designed to enable businesses to transfer staff to work in a UK subsidiary or branch. In the words of the guidance provided by the Home Office on the new immigration points-based system, “The purpose of arrangements for intra-company transfers and graduate trainees is to accommodate temporary moves by key business personnel, enabling multi-national companies to move their workers between subsidiary branches. These arrangements support inward trade and investment and give effect to commitments that the UK has taken in free trade agreements in respect of such workers.”

The ICT visa may be used for a range of business reasons, including facilitating specialist projects, providing training, carrying out business changes, or opening a new branch.

The current eligibility requirements for the Tier 2 ICT visa state that you must:

  • have a valid certificate of sponsorship for your job
  • be paid an ‘appropriate salary’ for your job
  • have personal savings so you can support yourself when you arrive in the UK (£945 in your bank account for 90 days before applying). If you don’t have sufficient cash savings, your employer can certify they will cover your living costs for your first month in the UK)
  • show you can travel and your travel history over the last five years
  • have tuberculosis test results if you’re from a listed country
  • be able to show you have worked for your employer outside the UK

You must have also been with your company for a minimum amount of time in order to apply for an ICT visa, as follows:

  • Long-term Staff earning £73,900 or less - 12 months
  • Long-term Staff earning more than £73,900 - no minimum time
  • Graduate Trainee - 3 months

What changes will there be to the Tier 2 ICT Visa for 2021?

From 1st January 2021, the term ‘Tier 2’ is being dropped; this will simply become the Intra-company transfer route. Beyond this, there are three main changes to the visa, however much will remain of the current rules; the changes are as follows:

  • Change in the higher salary threshold

From 2021, the ‘high earner’ threshold amount is changing from £120,000 to £73,900. Those earning over this amount will be exempt from the requirement to have worked for their employer for twelve months or more prior to entering and can stay in the UK for up to nine years.

  • ICT Cooling off period

Under the current rules, Tier 2 ICT visa holders are subject to a “cooling-off” period which means they cannot apply for another visa of the same type for a minimum of one year after leaving the UK (this does not apply to ICT visa holders earning over £120,000 however).

From 2021, it is not possible to hold an ICT visa for more than five years in a six-year period (unless a ‘higher earner’).

  • Switching and settling

Currently under the Tier 2 ICT visa rules, foreign workers do not have the option to extend their stay by applying for a Tier 2 (General) work visa while in the UK (this is referred to as ‘switching’).

Under the new rules, while the ICT route will not lead directly to settlement, it will now be possible to switch into the new Skilled Worker category (this replaces the current Tier 2 general work visa). Once they have held a Skilled Worker visa for five years, they will be able to apply for indefinite leave to remain (i.e. permanent settlement).

Aspects of the Current Tier 2 ICT which will Remain the Same

The Home Office guidance states, “The route will require applicants to be in roles skilled to RQF6, and subject to a different minimum salary threshold from the main Skilled Worker route. It will not be subject to English language requirements but will be subject to a requirement that the worker has been employed by the sending business for a minimum period prior to the transfer (12 months in the case of intra-company transfers or three months in the case of intra-company graduate trainees)”.

As such, many of the current aspects of the Tier 2 ICT visa will not be changed, including:

  • The role must be at RQF6 (degree level)
  • There is no English language requirement
  • You will need to have been working with the company at least one year
  • Long-term staff must be earning at least £41,500 or the appropriate pay for the role
  • ICT visa holders can only stay for five years (or nine if a higher earner)

Final Words

If you are already familiar with the Tier 2 ICT visa route, not much will change with the new ICT visa for 2021. Perhaps the most important change, and one which will make it more attractive, is that ICT visa holders can work towards settlement in the UK by allowing them to switch to a work visa within the UK. Having the ability to be flexible and stay longer in the UK, especially if you and your family are happy and settled, is invaluable.

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