The UK Government confirmed plans to increase the Immigration Health Surcharge during the March 2020 Budget. The charges will increase as follows for any applications made from 27 October 2020:
The increased fees will also apply to the UK’s new Points-Based System as it begins to take effect at the end of the year. From 1 January 2021, EU citizens wishing to come to the UK on a long-term basis will be subject to this levy.
Employers paying or reimbursing these costs for their employees should also consider the tax reporting requirements as HMRC generally considers these costs a taxable benefit in kind.