The changing landscape of global mobility: what employers need to know about the UK’s 2025 immigration and tax reforms

Proposed UK legislation changes

The UK government has announced sweeping new immigration changes for 2025, introducing stricter controls and higher skill and salary thresholds for migrant workers. These proposals accompany the new Foreign Income and Gains (FIG) regime and are expected to significantly impact global mobility programs, workforce planning and work-based visa eligibility. 

The UK’s FIG regime, launched on 6 April 2025, marks a major overhaul of how foreign income for internationally mobile individuals is taxed. Being prepared for these changes is important to support any global staff who may be affected.

Overview of the 2025 UK immigration proposals

The 2025 immigration policy overhaul is driven by a desire to reduce net migration, encourage domestic workforce participation and focus the UK’s visa system on attracting only the highest-skilled global talent. Key elements of the proposed changes include: 

• Skilled work visas: Eligibility now limits most visas to roles requiring degree-level qualifications. The minimum salary threshold for a standard Skilled Worker visa rose to £41,700 from 22 July 2025, with similar uplifts for specific categories and “new entrant” concessions. Roles below degree-level are now restricted to a new, time-limited immigration shortage list, and no longer permits bringing dependents or salary/fee discounts.
• Adult social care route: The route for international recruitment in adult social care closed to new applicants from 22 July 2025, though extensions for those already in the UK are allowed until 2028. This is a major shift for the care sector, previously a driver of high net migration.
• Settlement/ILR: The qualifying period for most migrants to apply for settlement (Indefinite Leave to Remain) will likely increase from five to ten years, extending the time individuals need to remain on temporary visas before becoming permanent residents.
• English language requirements: Standards will rise for all main applicants and, for the first time, these rules will also apply to dependent family members.
• Employer requirements: Employers hiring from the shortage list will need to submit detailed workforce plans showing efforts to develop domestic talent and will face stricter compliance obligations and oversight.
• Temporary Shortage List: The government has created a Temporary Shortage List, limiting overseas recruitment below degree-level to occupations deemed “critical”, subject to time limits and regular review.

Strategic impact on employers and migrants

• Cost and eligibility: The higher salary thresholds and tighter skill requirements will significantly reduce the pool of eligible international candidates. Employers must ensure all Certificates of Sponsorship reference the new salary rules or risk refusals.
• Planning: Workforce planning and internal mobility policies must be updated to reflect these new requirements. Potential hires will need to be screened early for both salary and degree-level eligibility.
• Long-term implications: The extended settlement timeline and increased English language hurdles may deter some applicants, changing the makeup of the international workforce over time. 

These proposals, in tandem with the FIG regime are part of the UK’s broader strategy to reshape immigration flows post-Brexit, creating a more challenging, but potentially clearer, landscape for international mobility and global assignment planning.

How Vistra can help

From immigration to individual income tax support, Vistra’s global mobility advisory team provides authoritative information and recommendations related to all aspects of global mobility. Whether you’re sending your first employee abroad or maintaining existing operations in multiple countries, we make sure you understand and fulfill your compliance obligations in all jurisdictions. 

Contact a member of the Vistra team today to learn how we can support your global mobility strategy.
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If you’d like to learn more about UK immigration reforms, check out part two of this series, where Luigi and Saul take a closer look at the FIG regime, covering eligibility, available reliefs and practical planning tips for globally mobile employees and employers.

About the authors 

Saul Howerton is Vice President and Global Head of People Advisory at Vistra. With over 20 years of experience in consulting, operations, and finance, he specializes in HR, global mobility, and back-office outsourcing. He helps high-growth companies streamline operations, structure entities, and expand internationally to drive sustainable growth.

Luigi Nicoletta is Director of Global Mobility Advisory at Vistra and a qualified international tax adviser (ADIT). With nearly 20 years of experience in international operations and corporate compliance, Luigi helps clients expand into new markets, manage cross-border expatriate assignments, and align global growth with regulatory and tax frameworks.