After what seemed like years, on January 31 the UK left the EU. The end of the beginning to some, and it means that UK businesses must now adjust to the reality of the 12-month transition period that will serve as a bridge between ‘in’ and ‘out’.
The final implications are far from certain as government negotiators begin the tortuous process of agreeing on the exit terms. And while some firms will need to engage the services of a specialist immigration lawyer, there are some accounting angles to consider. So, having been asked by a number of clients with EU nationals on the payroll about how they should approach the next twelve months, there are some things we now know for sure.
First, employers should take a look at their current workforce to make sure they know who is likely to need help with obtaining pre-settled or settled status. Once they’ve done that, they will need to produce evidence of status over time to meet future right-to-work requirements.
Employers who have EU/EEA/Swiss nationals on their payroll should be encouraging them (if they haven’t already) to apply for settled or pre-settled status under the European Settlement Scheme (EUSS) by 30 June 2021.
They also need to be aware that if they have employees who work within a regulated profession requiring set qualifications, these may need to be ‘officially recognised’ in the UK after the transition period (only if the qualifications weren’t gained in the UK). So that means you as an employer can support your employees’ efforts to get recognition from the relevant regulators before 1 January 2021.
So what happens next? As the transition period runs on but ends with a no-deal, temporary rules will come into being in place to allow EU/EEA/Swiss citizens to enter the UK without a visa for short-term visits of up to three months for work, study or leisure.
However, that’s not a long term fix: those EU nationals that want to extend their stay for up to another three years will need to apply for a European Temporary Leave to Remain, which cannot be extended further (and would include identity, criminality and security checks)
Beyond that, new arrivals from the EU/EEA/Switzerland will need to apply for permission under the skills-based immigration system set to take effect in January 2021.
Those who receive pre-settled status are allowed to stay in the UK for a further five years and apply for settled status once they have accrued five years’ residency. Those granted settled status can stay indefinitely and apply for British citizenship after 12 months if they wish.
Both pre-settled and settled status gives the right to:
- work in the UK
- use the NHS
- access public funds such as benefits and pensions (subject to eligibility)
- travel in and out of the UK.
Brexit doesn’t have to be a chaotic process, and the government has promised to keep employers up to date on what they need to do in order to ensure their business maintains continuity and keeps disruption to a minimum. They have also said they will issue updates throughout 2020.
In the meantime, you can contact us for help and support in a number of areas, from tax and payroll to accounting and banking.
