The Home Office have this week announced new rules regarding Intra Company Transfers. Large companies were previously able to bring in non-EU workers which damaged opportunities for UK based workers.
The new rules will come in from 1st April 2011, and will mean that employees earning less than £40,000 are prevented from working in the UK for more than 12 months. This is a positive announcement for UK workers; particularly IT Contractors who are already in high demand thanks to an increase in worldwide IT spending.
The PCG had been campaigning against the abuse of these transfers in support of the UKs freelance workers, who had previously been undermined by low paid workers from outside the EU. Simon McVicker, Head of Public Affairs at PCG, commented on the announcement, calling it “a huge step forward” in their campaign to regulate ICTs.
“We expected this major reform but are delighted that our recommendations to tackle ICT abuse through wage capping have been taken on board by the Government. The consensus is that from here onwards the rules are unlikely to get more liberal.”
“PCG feel this will ensure talented UK based workers are no longer side-stepped for UK jobs and bring regulation around ICTs in line with other working visas.”
He said that this ruling will help increase opportunities for skilled contractors and other workers in the UK, which will help fight the rising unemployment.
He ended by saying, “In future we hope that ICTs will be incorporated into the immigration cap which controls influx of workers depending on skills shortages in that sector, the only way to ensure that the country is at its optimum productivity.”
ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.
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