New Salary Rules for Self-Sponsored Skilled Worker Visas: What Swiss Entrepreneurs Need to Know

For Swiss nationals and residents seeking to expand into the UK market, the Skilled Worker visa via self-sponsorship has offered a practical and attractive route. This visa pathway allows entrepreneurs to establish a UK-based company, secure a sponsor licence for that business, and sponsor themselves as a Skilled Worker, thereby relocating to the UK to develop their enterprise.

However, the UK government has now announced changes that will have a direct impact on how self-sponsored applicants must structure their business and salary arrangements in order to comply with the immigration rules. These changes, set out in the March 2025 Statement of Changes, will take effect on 9 April 2025 and introduce new restrictions on the calculation of salary for Skilled Worker visa holders—particularly those who have invested in their own sponsoring business.

Changes to Salary Calculations for Self-Sponsored Skilled Worker Visa Applicants

A new provision—paragraph SW 14.2A of Appendix Skilled Worker—has been introduced to limit the inclusion of certain financial contributions in salary calculations. Specifically, any money paid by the visa applicant to their sponsor, or to a related business entity, may now be treated as a deduction from salary. These contributions may include loans, capital investments, or deductions from pay.

Unless the payment is wholly unrelated to business or immigration costs—for example, an optional salary sacrifice arrangement—such funds will be averaged across the sponsorship period and subtracted from the gross salary for immigration assessment purposes.

The Home Office has indicated that the objective of this rule is to prevent individuals from effectively funding their own salary by injecting capital into their business. While previously permissible, this approach is now likely to lead to refusal on the grounds that the salary is not genuinely being paid by the employer.

Implications for Swiss Residents Considering UK Self-Sponsorship

For Swiss entrepreneurs and business owners aiming to relocate to the UK using the self-sponsorship model, the implications of this change are significant. Until now, many applicants have supported early-stage businesses through personal investment, such as shareholder capital or director’s loans, while simultaneously drawing a salary that meets the Skilled Worker visa minimum threshold.

Going forward, businesses will need to be capable of paying the Skilled Worker’s salary without relying on the applicant’s own financial contributions. For example, an investment of £50,000 into a new company by a sponsored worker could be treated as a £10,000 annual deduction from their salary over a five-year sponsorship period, unless further guidance specifies otherwise.

This will present a particular challenge for businesses that are not yet revenue-generating. As such, Swiss self-sponsors may need to secure external investment, restructure salary payments, or defer applications until the business can sustain the necessary salary from trading income alone.

It remains to be seen whether the new salary rules will apply retrospectively to existing visa holders. No formal guidance has been issued regarding whether current Skilled Worker visa holders who self-sponsored will be affected, or whether the new rule will apply only to applications submitted on or after 9 April 2025.

A Broader Shift in the UK’s Immigration Policy on Business and Investment

The new Skilled Worker salary restrictions come amid a broader pattern of tightening UK immigration policy towards entrepreneurs and business investors. The closure of the Tier 1 (Investor) visa in 2022, the removal of the minimum investment requirement under the Innovator Founder visa, and now this restriction on investment under the Skilled Worker route, all point to a less welcoming stance on business migration.

For Swiss nationals who had previously looked to the UK as a base for expanding their operations or launching new ventures, these developments suggest a narrowing of available options. While alternative visa routes exist—such as the UK Expansion Worker visa or the Senior or Specialist Worker visa—these are more appropriate for established overseas companies and are not easily adapted for solo founders or start-ups.

The absence of a dedicated immigration route for genuine entrepreneurs or investors means that Swiss businesspeople may face greater barriers when seeking to build or grow a UK enterprise through migration.

Next Steps: Seek Specialist Legal Advice Before Applying

Given the complexity of these new requirements, it is vital for Swiss residents considering the UK Skilled Worker visa via self-sponsorship to seek professional advice at the earliest stage. A well-structured application can still succeed, but it must now demonstrate that the business can meet salary requirements without relying on the applicant’s own funds.

At Richmond Chambers Switzerland, our UK immigration lawyers specialise in business immigration and regularly advise Swiss clients on self-sponsorship strategies, sponsor licence applications, and compliance with Skilled Worker visa requirements.

To explore whether self-sponsorship remains a viable option for your circumstances, or to discuss alternative visa routes, contact our team on +41 21 588 07 70, email info@richmondchambers.ch or complete our online enquiry form.