2025 Business Immigration Update

18 January 2025

2025 Business Immigration Update

Striking the Right Balance

As the UK continues to refine its immigration policies in an attempt to attract global talent, whilst simultaneously reducing net migration figures, 2025 is likely to bring significant updates to business immigration pathways. Changes aim to balance, on the one hand, economic growth and labour market needs (particularly in high-demand sectors), against the Government’s pledge to implement new measures to cut historically high levels of migration to the UK, on the other.

Key Highlights

An update on the Innovator Founder Visa route: a possible alternative to a skilled worker visa

The Innovator Founder visa category, introduced in 2023, allows Non-UK entrepreneurs to come to the UK to set up and run their own business.

To qualify, applicants must first secure an endorsement from an authorised body, demonstrating that their business is ‘innovative, viable and scalable.’ The Innovator Founder visa replaced the Innovator and the Start Up visa routes, and it has rapidly become the primary visa category for foreign entrepreneurs looking to set up a business in Britain.

The Innovator Founder Visa is aimed at individuals looking to start scalable businesses that can contribute to the UK economy. This visa provides an initial three-year stay, with the possibility of extension or applying for indefinite leave to remain if specific business criteria are met. However, obtaining the requisite endorsement in the first place can be challenging, due to rigorous criteria.

In contrast, the Skilled Worker Visa can be self-sponsored by business owners who act as employees of their own established UK company. While this avoids the need for endorsement, it requires meeting specific salary and job criteria, making it more suitable for those focusing on operating a business rather than launching an innovative startup. The Skilled Worker Visa offers a simpler route without the need for innovation, but it requires the business owner to operate within the constraints of employee sponsorship, which may limit flexibility in the early stages of business growth.

In any event, the Innovator Founder route is an exciting option for entrepreneurs, for example in the technology, sustainability, and life sciences sectors, and it is now a popular alternative to the ‘self-sponsorship’ Skilled Worker Visa route.

The Skilled Worker Visa: the Government’s fondness for lists!

Last year, the Skilled Worker immigration route saw significant changes, including an increase in the standard Skilled Worker minimum salary level increasing by more than a third (from £26,200 to £38,700). This means that, to be eligible for a Skilled Worker visa, most applicants in 2025 will need to demonstrate a salary at or in excess of £38,700, as well as meeting or exceeding the relevant ‘going rate’ for their particular role, which is set out in the Home Office’s list of occupational codes (or SOCs for short).

In addition, the Home Office maintains an ‘Immigration Salary List’, which provides details of all occupations with a reduced general salary threshold in respect of the Skilled Worker route. Occupations which are on the Immigration Salary List do not need to satisfy the full general salary requirement of £38,700. Instead, these occupations have a 20% discount on the general salary threshold, meaning that the general salary threshold is reduced to £30,960.

Finally, the Shortage Occupation List (which is regularly reviewed by the Migration Advisory Committee) may be reviewed again in 2025 (the most recent review was in 2023), potentially adding more roles to address any persistent labour shortages.

For those who enjoy browsing a good list, the Home Office provides plenty to explore! For everyone else, navigating the various lists comprising occupational codes and salaries can sometimes be a logistical challenge, and Boardside Law is always happy to help with any queries.

eVisas – a reminder:

All biometric residence permits expired on 31 December 2024, so all overseas nationals who are currently residing in the UK on the basis of a biometric residence permit must apply for an eVisa as a matter of urgency.

In practice, the Government has confirmed that expired documents will be accepted in practice until 31 March 2025, but it is nevertheless essential for applications to be made a priority.

Impact on Employers

Streamlined Processes: The proposed changes aim to reduce administrative burdens, making it easier for employers to recruit and retain international talent.
Focus on High-Skill Sectors: By targeting key industries, the government hopes to address skills shortages and drive economic growth.
Enhanced Compliance: Employers must remain vigilant about compliance requirements, particularly around right-to-work checks and sponsor licence obligations.

Action Points for Employers

Review Sponsorship Capabilities: ensure your organisation’s sponsor licence is up-to-date and ready for expanded visa use.
Reminder to employees: ensure that any relevant employees who are overseas nationals have applied for their eVisas.
Engage with specialists: leverage expertise to identify the best immigration pathways for prospective hires.
Monitor Policy Updates: stay informed about changes to ensure timely adjustments to recruitment strategies.

The proposed reforms reflect the UK’s ambition to remain competitive in the global talent market while addressing domestic labour challenges. Employers should act now to align their immigration strategies with these upcoming changes.

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