The Scale-Up Visa: The new Immigration route to attract the best and the brightest to your company

Businesses who have strong plans for growth and to scale-up their business are always looking to recruit the right talent for their company to help them achieve their objectives. It may be that the talent they are looking for can be found not only in the UK, but from overseas. A new route is now available that is part of many work visa routes aiming to attract the best and brightest of professionals and talents to the UK.

This new route was introduced on the 22^{nd of} August 2022 to allow talented individuals to be recruited by a UK Scale-up Sponsor. This is to enable the business to continue growing and attract the exceptional talent it needs to achieve its growth and/or scaling up plans.

Scale-up Sponsor

To apply for a Sponsor Licence under the Scale-up route, a business must:

• have achieved growth of 20% or more in either employment or turnover year-on-year for the 3 years prior to the date of the application; and
• have employed a minimum of 10 people at the start of the 3 years.

Scale-up visa

To apply for a Scale-up visa, an individual migrant must:

• have a job offer from a Scale-up Sponsor for at least 6 months in one of the following eligible groups:
  • scientists;
  • engineers;
  • programmers;
  • software developers;
  • research and development professionals;
  • economists;
  • architects;
  • technicians; or
  • financial and investment advisers.
• have been offered an annual salary of £33,000 or more;
• have been issued a ‘certificate of sponsorship’; and
• meet the English language requirement.

An interesting feature of the route is that, although the initial visa is issued for a period of 2 years, a Scale-up visa holder can leave their job after 6 months of sponsorship without having to inform the Home Office and update their visa. Within that first 6-month period however, they need to apply to update their visa if they want to change employer.

After the initial 2-year period, a Scale-up visa holder can apply to extend their visa for 3-year periods at a time if they meet eligibility requirements. This means that ‘unsponsored’ Scale-up visa holders and their employer must understand the requirements for maintaining status and qualifying for a visa extension or settlement (indefinite leave to remain) application under the route. The latter being an option after 5 years in the UK under the route. An effective employee retention strategy is therefore also key to the success of the business.

An employer may need to consider sponsoring the ‘unsponsored’ Scale-up visa holder under an alternative route such as the Skilled Worker route, which may be at short notice. If sponsorship is not possible and the employee is unable to secure a visa that allows them to work for the company under another route, their employment will need to be terminated.

PROS of the route

• there is no Immigration Skills Charge (ISC), which can be as high as £5,000 over a 5‑year period in comparison to the Skilled Worker or Senior/Specialist Worker routes;
• reduces migrant administration after the first 6-month of the sponsorship.

CONS of the route

• the Scale-up Sponsor will continue to have sponsor licence obligations during the life of the licence (with or without any sponsored migrant employees);
• a Scale-up visa holder is not tied to their sponsor after the initial 6-month period, which may reduce employee retention (see above);
• the employer must pay Scale-up visa holders under PAYE on a monthly basis (no other pattern) for them to qualify for extension and settlement;
• the minimum salary threshold is £33,000, which is higher than for Skilled Workers; and
• there is a risk that the Scale-up via holder may not qualify to extend or settle under the route (see above).

The route aims to provide a cheaper, faster, and less administratively burdensome option for scale-up businesses. Time will tell whether it assists high-growth companies in attracting and retaining exceptional talent.

If you have any questions, or would like to enquire about acquiring a Scale-up Sponsor Licence, please contact our Head of Immigration, Patricia Marleau, via 01905 900 914 or Patricia@bradleyhayneslaw.co.uk – she’s ready to help you.