The UK government has intensified its crackdown on illegal working, with January 2025 seeing record enforcement activity. Home Secretary Yvette Cooper announced these efforts as the Border Security, Asylum, and Immigration Bill returned to Parliament last week.
Key highlights
Here are some key highlights of the recent activity:
-828 premises were raided in January (+48% on the previous January), which led to a total of 609 arrests (+73%).
-Visits show that restaurants, nail bars, and car washes are seen as high-risk sectors.
-Since 5 July 2024, illegal working visits and arrests have increased by 38% compared with the previous year, with 1,090 civil penalty notices being issued by the Home Office in that time.
What are the takeaways for businesses?
Ensuring your employees have the legal right to work is more critical than ever. Employers can use the Home Office’s guidance on checking a job applicant’s right to work. A proactive approach to vetting staff can save significant headaches down the line.
Now is a good time to review your recruitment processes and make sure you are complying with immigration laws. It’s particularly important to be wary of informal hiring or failing to conduct due diligence, since it’s clear that the authorities are ramping up enforcement.
Ethical employment practices are not just a legal necessity but also a business advantage. Businesses that treat their workers fairly and operate within the law enhance their reputation and contribute to a fairer marketplace. In contrast, those who cut corners risk financial penalties and long-term reputational damage.
In view of the increased enforcement activity, being compliant with the immigration laws will help to protect your business and its reputation.
See: https://www.gov.uk/government/news/uk-wide-blitz-on-illegal-working-to-strengthen-border-security
HMRC have clarified the position on Self Assessment tax return reporting requirements for directors of close companies and updated their guidance for directors of charities.
HMRC have updated guidance on UK VAT refunds for non-UK businesses in a VAT group. Revenue & Customs Brief 10 (2026) explains changes to how non-UK businesses in a VAT group should make future UK VAT refund claims and the transitional arrangements. It also explains how to ask HMRC to reconsider claims made since 1 January 2021 that have been refused.