This charge is designed to discourage employers hiring skilled workers from other countries. As it is currently not permissible to impose a restriction on workers moving to the UK from other EU or EEA member states, the charge only applies to workers from non-EEA countries.
The charge is imposed at the rate of £1,000 per skilled worker (“tier 2”) per tax year. Small businesses and charities pay £364 per worker per year. A small business in this context is one with annual turnover of no more than £10.2m, and with no more than 50 employees
The immigration skills charge must be paid in advance when the employer applies for a certificate of sponsorship for the prospective employee from the Home Office. The charge is payable to the Home Office, not to HMRC.
Written by the Tax Advice Network