Hong Kong has historically attracted multinational firms. It has established a highly sought-after workforce with a global perspective and innovation inclination. However, due to a worldwide labor crisis, Hong Kong firms are having trouble recruiting, keeping, and engaging workers. In recent years, some local talent has left for other places. The UK offers many Hong Kongers a British National Overseas (BNO) visa.
With recent BNO policy revisions and more Hong Kongers projected to use the new BNO visa in the future years, companies must understand how the migration may affect their staff. By working with a UK Employer of Record (EOR), Hong Kong MNCs may be better able to retain talent.
What is BNO Visa Hong Kong?
In 1985, the UK created BNO citizenship for Hong Kong residents who wished to stay in the UK. Hong Kong nationals may seek for BNO status until 1997, but family members could not inherit it. Since its introduction, BNO status has few characteristics. The biggest advantage was six-month visa-free UK visits.
The UK government introduced the Hong Kong BNO visa system in 2021, considerably expanding BNO status benefits. BNO nationals and their dependents may now work and live in the UK for two five-year periods. They may request to stay indefinitely after five years. If accepted, the person could reside and work in the UK continuously without reapplying for a visa.
What does the BNO visa imply for Hong Kong employers?
The British government estimates that 72% of Hong Kong’s 7.5 million people, or 5.4 million, are eligible for the program. Rising interest in BNO status. According to Quilter International, 463,116 Hong Kong residents received BNO visas between 2019 and 2021, up from 68,914 in the previous three years.
Over 100,000 individuals have filed for BNO visas since their debut, according to Home Office figures. Most candidates are qualified managers. Future candidate numbers may destabilize Hong Kong’s talent pool and make it tougher to retain talent.
Hiring locally in the UK
Hong Kong enterprises may find it easiest to rehire UK workers via a local organization. Setting up a local company requires several steps, paperwork, and time.
Many firms may struggle to implement these solutions due to resource and time constraints. Operating a UK corporation involves administrative hurdles, expenditures, and operational dangers. These are tough to handle if the HR personnel is in Hong Kong. Companies with modest UK headcounts may not benefit from rehiring individuals via a local organization.
Important warning regarding hiring independent contractors
Hong Kong corporations may engage their present staff as freelancers instead of forming a UK company. However, they should know the UK’s rigorous freelancing restrictions.
UK statute IR35 prevents freelancers from dodging taxes by posing as employees. Due to private firm revenues lowering taxes, it was implemented in 2000.
To ensure equitable taxation, IR35 requires employees to satisfy specific standards.
Three main elements determine IR35 eligibility:
- Does the corporation control where and how work is done?
- Does the worker need to do a personal service or may they substitute?
- Must the firm give employment and must the worker accept it?
Other important considerations to address while hiring an IC or permanent staff include:
- Does the employer supply the worker with the right gear?
- Does the employee work full-time?
- Does the employee fit in? Are they part of a team comprising full-time, permanent employees? Are they on organization charts?
If the worker answers yes to any of these questions, they will likely be regarded permanent employees and subject to IR35. Not following IR35 may lead to sanctions and legal troubles for workers. Hong Kong enterprises seeking a UK IC must be cautious before proposing this arrangement.
Your Pathway to a BN(O) Visa Made Easy
Given the Immigration Rules’ rigorous paperwork requirements, obtaining a BN(O) Visa may be difficult. QC Immigration provides skilled advice and help. Their highly experienced professionals can assist you apply for a BNO Visa, which may need a biometric residence permit or digital status.
Contact QC Immigration anyway you choose, and they’ll work hard to strengthen your application to avoid delays.
