Lately, the UK Government has updated regulations concerning employee hiring and imposed stricter penalties on businesses.
If you’re a sole proprietor or run a business, it’s crucial to adhere to stringent employment regulations to ensure your employees work legally.
In cases of repeated hiring of undocumented immigrants, businesses may face fines of up to £60,000 per violation.
Fine Details
The UK Government is introducing new penalty measures, effective early 2024, intensifying fines for both businesses and landlords.
Currently, initial penalties for businesses hiring undocumented immigrants are £15,000, which will rise to £45,000 by 2024.
Penalties for businesses repeatedly violating employment rules will be £20,000, escalating to £60,000 by 2024.
Meanwhile, first-time offending landlords will face fines of £80 per tenant and £1,000 per owner.
Starting 2024, fines for violations will increase to £5,000 per tenant and £10,000 per owner.
How Employers Can Carry Out Audits
- Inspect Legal Documents: Prior to hiring employees, request valid identification and work permits, including passports, visas, and residency permits.
- Utilize ‘Right to Work Check’: The UK Government offers an online ‘Right to Work Check‘ service that allows you to verify employees’ work rights. This service provides an employment confirmation, indicating whether you can hire the employee.
- Contact UK Visas and Immigration: If you have concerns about an employee’s identity and work rights, you can reach out to UK Visas and Immigration for further guidance and confirmation. They can provide information on work permits and legal employment status.
Additional Considerations
Apart from the mentioned hiring checks, our team strongly recommends using the PAYE system for wage payments.
In the UK, most employers are required to use the Pay As You Earn (PAYE) system to pay employees and report taxes to HMRC.
We advise sole proprietors to consider using the PAYE system as well, despite its convenience and efficiency.
If you’re uncertain about the latest tax policies, feel free to consult our professional team at any time.
