Sending an employee to the UK? Here's a guide to get you started. By Rob Hyde.

• Work permits
• Visas
• Business trips
• How to prepare for the UK business trip
• Sole representatives
• The Association Agreement
• Highly skilled workers
• Tax background
• The UK/EU conflict on tax harmonisation
• The tax situation now

Sentiment towards economic immigrants is changing in the UK after less-than-welcoming attitudes from politicians and Britons for years.

A new, pilot initiative to attract only very highly skilled foreign workers - who can enter without a job if they qualify -went into effect in late January, a sign that the government is slowly and cautiously opening its doors. Undoubtedly, EU/EEA nationals will continue to have the easiest time getting legally settled in the UK.

Nationals of EEA countries (the EEA comprises the EU plus Norway, Liechtenstein, and Iceland) do not need a work permit to work in the UK.

The spouse of a work permit holder (or training permit holder, sole representative, investor, student, or ancestry visa holder) also does not need a work permit.

British work permit arrangements allow employers to offer work in the UK to non-European Economic Area country nationals. 

Individuals are not allowed to apply for a work permits - only a British-based employer may do so. Employers must be based in Great Britain (England, Scotland or Wales) and can only offer work to people within these areas. There are separate work permit arrangements for employers based in Northern Ireland.

The Work Permits (UK), formerly part of the Department for Education and Employment and now part of the Home Office's Immigration and Nationality Directorate, issues UK work permits. A UK work permit allows a company to employ a specific person in a specific job at a specific location.

No work permits are issued for low-level or unskilled jobs such as manual craft, clerical, secretarial, or domestic work such (nannies or housekeepers).

However, this does not mean no work permits are required for such a job. Unless an individual's immigration status allows him to work without a work permit, he needs a work permit, regardless of skill level.

To increase chances of a swift processing, employer are advised to supply all relevant information at the time of application.

If approved, the work permit is forwarded to the named employer. He is then obliged to send this to the person overseas. This person is then to present the work permit along with their passport at the UK port of entry. Note that work permits are not transferable - an applicant wanting to work elsewhere in the UK must re-apply.

After four years in work permit employment, an individual can apply for residency or Indefinite Leave to Remain (ILR) in the UK.

UK employers are now under increased pressure not to employ illegal workers. They face fines of up to GBP 5000 for each employee who does not have permission to live and work in the UK.

For more information, see www.workpermits.gov.uk

Non-EU (and some Commonwealth countries) may also require a visa.

To apply for a visa, or "entry clearance", the individual wishing to come to the UK should fill in form IM2A (and related forms if applicable), which you can be obtained free of charge from the nearest British mission (embassy, high commission or consulate) offering an entry clearance service.

If the local British mission cannot process the application, they can inform the individual where to apply.

Processing the application is relatively quick. The UK Immigration authorities at the Home Office aim to process 50 percent of applications within one day of receipt and 90 percent of applications submitted with all relevant information within one week of receiving them.

For more information on visas, see http://www.fco.gov.uk/ukvisas/dynpage.asp?Page=336

Those entering the UK for business purposes are called "business visitors". They are entering to attend meetings and briefings, or to negotiate or make contracts with UK businesses to buy or sell services or goods.

However, those who may also be intending to work after conducting their business should not enter as business visitors, as a visitor is officially prohibited from taking employment in the UK.

The visitor is also barred from producing goods or providing services within the UK, including the selling of goods or services directly to members of the public.

Exceptions to this rule include those delivering goods and passengers from abroad, such as lorry drivers and coach drivers, tour group couriers contracted to a firm outside the United Kingdom, and those arriving as speakers at conferences on a "one off" basis.

It will be well worth bringing the following to ensure a smooth entry and avoiding hassle from Immigration Officers.

• Copies of your return ticket or ticket to the next destination.
• Proof of sufficient adequate funds to support yourself (and accompanying dependants) during your visit to the UK.
• Proof of visa or necessary permission to travel to your country of next destination. If you require a visa, apply at your local British Embassy, Consulate or High Commission. If you intend entering the UK more than once, remember to ask for a multiple-entry visa

• A short letter from your employer confirming

  1. Your position with the company.

  2. That you are travelling on behalf of the company.

  3. Your travel dates.

  4. The nature of your business activities during your UK visit.

• Letters from the companies you will visit confirming your appointments with them.

Also, be prepared to answer any questions on whether you have any family living in the UK (see below), and whether you and any dependants travelling with you have criminal records or have been refused entry to any country.

An employee of an overseas firm may not have a subsidiary, branch office, or other representative in the UK, but they can seek to enter the United Kingdom as the "sole representative" of the company, ie, as their first employee in the UK.

Under this category, an "entry-clearance" must be obtained prior to coming to the UK.

Candidates should be employees, not owners of the business, although a minority shareholding is acceptable. Above all, the main business of the organisation should remain outside the UK.

Successful applicants are normally granted an initial 12-month stay to set up the first UK branch office or subsidiary. After this, if business is viable, a further three years can be applied for.

Some Eastern European countries have signed "Association Agreements" with the European Union that allow nationals from those countries to enter the United Kingdom and manage undertakings on a self-employed basis.

This can be conducted as a sole-trader, in partnership or through means of a limited company.

To persuade the immigration authorities that the business is viable, a comprehensive business plan should be prepared at the outset. This should include a detailed description of the business, including market research, along with a projected profit and loss account for the first few years.

It should also show that the applicant has enough funds, or will generate sufficient revenue from his business, to maintain and accommodate himself and any dependants without having to fall back on state benefits.

These Association Agreements have proved highly controversial. A number of cases have been referred to the European Court of Justice on the issue of whether nationals from these countries have a directly effective right of establishment in European Law.

Those with rare and sought-after skills are now to apply to come to the UK to seek work under the new Highly Skilled Migrant Programme (HSMP).

The new scheme, which began 28 January 2002, is assessed on a points-based system of qualifications and experience. It will operate entirely independently of existing UK immigration rules. To be considered,an applicant must obtain at least 75 points from the five following categories:

Educational qualifications. 30 points available for those holding a PhD; 25 for those with a master's degree and 15 for those with a graduate degree.

Work Experience. 15 points for five years' work experience in a graduate level job (three years with a PhD). 10 extra points for two years working at a senior level or in a specialist position within chosen field.

Past Earnings. This requires proof of a minimum earned income in the country of residence. The level required to qualify varies depending where the applicant lives to reflect differences in income level and cost of living across the world.

A specific category that will help facilitate the recruitment of suitably qualified overseas doctors to work as General Practitioners (GPs) in the UK.

Unlike the work permit scheme (see below), HSMP does not require an employer to obtain a permit from the applicant.

It is also unlike established business routes, such as the Innovators Scheme, as it does not require a detailed business plan or substantial investment in the UK.

The programme will run for an initial period of 12 months.

The tax situation is very complicated in the UK, as it is currently in conflict with Europe over the issue of EU-wide tax harmonisation.

Compared to mainland Europe, the UK has low tax rates (20 percent for small businesses), practically the lowest mainstream rates in the EC. Whilst France's rate is 41.6 percent, Germany's rate lies between 43.6 percent and 56.6 percent.

Many in the UK are Euro-sceptic, but fears were heightened when Hans Tietmeyer, former President of Germany's Central Bank announced: "A European currency will lead to member nations transferring their sovereignty over financial and wage policy, as well as in monetary affairs. It is an illusion to think that states can hold on to autonomy over taxation policy".

The UK is still under pressure from Brussels to conform to EU tax harmonisation and force its citizens to pay an individual tax to EU headquarters based there.

However, last year, the Netherlands, Sweden and Ireland backed Britain's anti-Euro tax stance.

Dutch Minister Gerrit Zalm said that the last time such a tax had been introduced in the Netherlands, it had sparked the 80 years war against Spain in the 16th century.

His Irish colleague, Charlie McCreevy, went a step bolder still when he said the same tax dispute had sparked off the American war of independence.

Luxembourg and Germany rallied for the Euro tax, however, claiming it would create greater accountability and openness.