If your business is growing rapidly and you anticipate that the growth will be sustained, you can consider obtaining a scale-up sponsor licence and taking on workers on the scale-up visa route. This route is specifically designed for fast-growing UK companies and offers a significantly more flexible and cost-effective alternative to the Skilled Worker route, making it a more affordable route to bring in global talent with fewer compliance burdens after the initial 6 months.
What is a scale-up visa?
Introduced in 2022, a scale-up visa is granted to highly skilled global workers who have the experience to provide the assistance needed by an expanding business. It is intended to allow businesses to take on the talent they need to keep their organisations growing with lower upfront costs and greater workforce flexibility.
The initial visa lasts for two years, and can then be extended for a further three years. After five years, an application can be made for indefinite leave to remain. Those on a scale-up visa can also bring their families to the country.
Why the scale-up route is attractive to growing businesses
- Lower general salary thresholds (£39,400) than the skilled worker route (£41,700)
- Lower going rates of occupation codes, typically around 70%-75% of the skilled worker going rates
- Exempt from the immigration Skills Charge which could save large sponsors £1,320 per sponsored worker per year or £480 per sponsored worker per year
When is a firm eligible for a scale-up sponsor licence?
While the Scale-up visa offers significant cost and compliance advantages, businesses should be aware that the Scale-up sponsor licence is strictly time-limited, i.e. 4-year period. The standard sponsor licence application eligibility applies, and the company must be:
- A genuine organisation operating lawfully in the UK
- An honest, dependable, reliable individual, not engaged or previously engaged in behaviour or actions that are not conducive to the public good
- Capable of carrying out sponsor duties and dealing with compliance in the required timeframe and manner
In addition, when applying for a scale-up sponsor licence, a business must show that they:
- Are solvent
- Are able to offer and intend to offer employment that:
- Meets the skill-level and salary requirements for a scale-up visa
- Is genuine
- Meets the definition of a qualifying scale-up sponsor
The definition of a qualifying scale-up sponsor is assessed in one of two ways:
- The standard pathway, looking at growth of number of employment/turnover; or
- The endorsing body pathway, where an approved endorsing body confirms eligibility. This option is used when a business does not have a long enough history with HMRC to apply on the standard pathway
Under the standard pathway, a business must:
- Have annual growth of at least 20% for the three years before the application, based on either employment (staff count) or turnover; and
- Have a minimum of ten employees at the start of the three-year period
Under the endorsing body pathway, a business must satisfy the relevant body that they meet the following requirements:
- At least ten employees
- Registered for VAT
- Solvent and trading in the UK
- Have an HMRC footprint of less than four years
- Demonstrate a sufficient potential growth rate so that you can reasonably be expected to meet the standard pathway requirements within four years
- Have a UK-registered corporate bank account
In addition, applicants must meet three out of five criteria relating to growth, participation in a government programme, finance, international operations and research and development expenditure.
Who qualifies for a scale-up visa?
To qualify for a scale-up visa, a worker must have the skills the business needs to enable it to continue to grow. They must:
- Have a confirmed job offer to work for an approved scale-up business for at least 6 months
- Have a confirmed job offer at the required skill level
- Be paid a minimum of £39,100 per year or the ‘going rate’ for the occupation code, whichever is higher
- Have the necessary knowledge of English
- Have a valid Certificate of Sponsorship from a qualifying scale-up sponsor, if this is their first time application
A scale-up visa holder who applies to renew their visa for a further three years will not need a Certificate of Sponsorship.
How 3CS can help
Our expert immigration solicitors can collate the large amount of documentation needed to demonstrate eligibility for a scale-up visa and ensure your application is as strong as possible.
For assistance, please get in touch with your usual 3CS contact.
