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Global HR Lawyers

Ignorance isn't bliss... especially with illegal working

16 March 2017

If you’re considering restructuring the service company which employs most of your staff, and that company holds your sponsorship licence, you may need to apply for a new sponsor licence and transfer your sponsored migrants accordingly.

Many professional service providers, such as law firms and accountants, are structured as a limited liability partnership which owns a limited company that acts as the employer to most of the firm’s employees. These structures have been popular for a variety of reasons, some of which were around the historic tax treatment of those limited service companies. However, increases to income tax on dividends from 2016/17 have caused some to re-evaluate their structure and eliminate the service company. In the process of eliminating the limited service company, be sure you don’t inadvertently make some of your staff illegal workers by not getting a new sponsor licence for the LLP.

If you would like any immigration advice on sponsor licence issues please contact Ben Maitland and if you need advice on the corresponding TUPE issues please contact Karen Baxter.


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