Immigration surcharge hits tech recruiters
- Author:Ella Cai
- Release on:2017-05-06
Tech businesses could suffer as a result of changes to immigration laws, according to Northern digital trade association Manchester Digital.
The new laws, which came into effect last month, will require large businesses to pay a new immigration skills charge of £1,000 per year, per employee, to employ overseas workers from outside of the EU.
Small businesses and charitable employers will be required to pay £364 per employee annually.
Earlier this year Manchester Digital’s annual skills audit found that one in ten Northern digital businesses rely on overseas talent to bolster the talent pool.
katie Gallagher
Katie Gallagher, managing director of Manchester Digital, writes:
“Creating extra hurdles for businesses that are already struggling to find talent in the wake of a growing digital skills shortage contradicts the Government’s pledge to prioritise the support of the technology industry.”
There is also likely to be a further impact on skills if Brexit restricts free movement.
Gallagher points out:
“The digital economy now contributes a massive £97 billion per year to the UK economy, and tech investment into the UK is growing significantly year on year, so it’s crucial that we have a strong talent pipeline to support this – and being able to employ overseas talent is a vital aspect of this.”
Manchester Digital represents over 500 digital technology businesses and thousands of students across the North West of the UK.
The new laws, which came into effect last month, will require large businesses to pay a new immigration skills charge of £1,000 per year, per employee, to employ overseas workers from outside of the EU.
Small businesses and charitable employers will be required to pay £364 per employee annually.
Earlier this year Manchester Digital’s annual skills audit found that one in ten Northern digital businesses rely on overseas talent to bolster the talent pool.
katie Gallagher
Katie Gallagher, managing director of Manchester Digital, writes:
“Creating extra hurdles for businesses that are already struggling to find talent in the wake of a growing digital skills shortage contradicts the Government’s pledge to prioritise the support of the technology industry.”
There is also likely to be a further impact on skills if Brexit restricts free movement.
Gallagher points out:
“The digital economy now contributes a massive £97 billion per year to the UK economy, and tech investment into the UK is growing significantly year on year, so it’s crucial that we have a strong talent pipeline to support this – and being able to employ overseas talent is a vital aspect of this.”
Manchester Digital represents over 500 digital technology businesses and thousands of students across the North West of the UK.
