Contractors who have previously relied on their EU passport to work freely in the UK are reminded that the grace period will come to an end on the 30th June 2021. This means that they will need to prove that they have the appropriate immigration status to remain and work legally in the UK. This grace period gave the necessary time for affected individuals to apply to the EU Settlement Scheme (EUSS) to secure their right to continue living and working in the UK.
From 30th June 2021 any EU, EEA and Swiss citizens (with the exception of Irish citizens) will need to comply with immigration rules in the same way as other foreign nationals. What this means is that from 1st July EEA citizens, and their family members, require the appropriate immigration status in the UK and can no longer rely on their passport or national identity card to prove their right to work when applying to work through an umbrella company.
There is no requirement for retrospective checks to be undertaken on EEA citizens who entered into employment with their current employer up to and including the 30th June 2021.
For the majority of EEA citizens, immigration will be granted under the EU settlement scheme (EUSS) and will provide their right to work using the Home Office online Right to Work Service. They will provide the new employer (umbrella company) with their share code which the umbrella company will check and verify online. A Settled status will give the individual a permanent right to work status in the UK whereas a Pre-settled status will give a right to work for a specified time period.
| Settled Status | Pre-Settled Status |
| Lived in the UK for 5 years or more continuously | Lived in the UK for less than 5 years |
| Resident in the UK before 31st December 2020 | Resident in the UK before 31st December 2020 |
| Apply before 30th June 2021 – processing can take up to 3 weeks | Apply before 30th June 2021 – processing can take up to 3 weeks |
| Indefinite status | 5 years |
| Apply for British citizenship once held for 12 months (cannot be backdated) | Cannot apply directly for British Citizenship (once lived > 5 years can apply for settled status) |
Irish Citizens do not fall under this new regime and continue to have unrestricted access proving their right to work with their Irish passport or passport card.
For further information and to find out how to apply to the EU Settlement Scheme please visit the government website link here.
Umbrella Exchange has access to a wide range of hassle-free services that can help you with setting up a limited company or finding the right umbrella company for you. To talk to a member of our team, call 0203 393 3881.
