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Civil Fraud Case Update: Q3 2025
Mary Young
When it comes to naming immigration categories, UKVI has really upped its game - UK Expansion Worker has replaced the wordy Representative of an overseas business, and yet another immigration category with a jazzy name, Scale-up, was introduced on 22 August 2022. But unfortunately, as with UK Expansion Worker, once we look beyond the catchy name, the Scale-up category contains a number of potential shortcomings.
A current abiding theme of the UK’s work visa categories is the concept of sponsorship – with a company stepping up to the role of acting as a sponsor for a foreign worker, and the Scale-up visa continues this.
High-growth only
It requires that a UK company apply for a Scale-up sponsor licence (or applies to add the Scale-up category to its existing sponsor licence if it already has one). To qualify, the company must have been racing along with an average growth of 20% in either employment or total sales over the last 3 years and to have had at least 10 employees at the start of the 3-year period.
UKVI will perform checks with HMRC using VAT and PAYE records to confirm the company’s headcount/sales figures – gaps or shortcomings in these records may complicate a sponsor licence application. Documents in support should not normally be required, making the Scale-up sponsor licence application relatively light touch.
What do you get?
An initial sponsored application gives the applicant a two-year visa, followed by a three-year unsponsored extension taking the holder to potential eligibility for settlement (indefinite leave to remain) after five years.
For workers
The upside of the category, from the perspective of the worker, is that they are not tied to be sponsored at all times until they obtain settlement. Unlike the Skilled Worker category, the worker only has to be employed by their sponsor for at least 6 months before they can take a new, unsponsored role. They can also work on a self-employed basis.
However, there are restrictions that may hold back some would-be Scale-up visa applicants. To qualify for an extension, for at least 50% of their time in the UK they must have been paid at least £33,000 through PAYE, i.e. employed income. Then in order to qualify for settlement after 5 years, they must have been paid in the same way for at least two of the last three years. Self-employed income and any income from outside the UK do not count. So, the route offers flexibility to change roles and be self-employed, but employed earnings must be maintained for the majority of time before obtaining settlement.
For employers
Whilst the added flexibility to change roles with comparative ease will doubtlessly be welcomed by workers, for employers this is an issue to consider carefully. Potentially tying in a new hire as a Skilled Worker who always requires sponsorship, and therefore making it harder to change role, will likely provide longer term staff retention benefits.
Although the minimum salary requirement for the Scale-up visa is higher than for a Skilled Worker, at £33,000 per year/the going-rate for the type of role/£10.58 per hour, the application fees are lower and importantly there is no Immigration Skills Charge (ISC).
For large, high volume sponsors, paying up to £1,000 ISC fees per year of the visa is a significant expense. In addition, once the first 6 months of sponsorship ends, so too do the sponsor’s compliance responsibilities. Whilst that is welcomed, the initial sponsor and any future employers need to consider to what extent they need to monitor the Scale-up worker’s earnings to ensure they qualify for an extension and settlement. Plus, a Scale-up sponsor licence is only valid for 4 years and (unlike a Skilled Worker licence) cannot be renewed. As such, the long-term viability of the route for frequent-use sponsors is in doubt. That won’t be such an issue for UK employers seeking to recruit talented individuals on a one-off basis who are not interested in being tied to a sponsor-only role.
To apply or not?
Existing Skilled Worker sponsor licence holders and companies considering applying for their first licence will need to carefully weigh up the pros and cons of the new Scale-up route for their business. The cheaper sponsorship costs and shorter timeframe for sponsorship are not to be sniffed at. We will need to wait and see whether the Scale-up visa becomes a well-trodden path for workers into the UK or whether it becomes another immigration category that falls flat.
FURTHER INFORMATION
If you have any queries on the Scale-up category or any other immigration issues, please contact Robert Houchill or a member of the immigration team.
ABOUT THE AUTHOR
Robert Houchill is a senior associate in the immigration team. He has extensive experience in assisting individuals and organisations with their UK immigration and nationality matters. Robert’s experience covers all kinds of immigration and nationality applications but with a particular emphasis on corporate immigration matters, and helping high-net-worth individuals.
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