How to Apply for Indefinite Leave to Remain

Applying for Indefinite Leave to Remain (ILR) in the UK

Published by LocalPage.uk Senior Content Architect | UK Business & Compliance Series | Updated February 2026

Navigating the transition from temporary visa status to permanent residency is a pivotal milestone for international professionals and business owners contributing to the UK economy. Indefinite Leave to Remain (ILR), often referred to as settlement, provides the freedom to live, work, and study in the United Kingdom without time restrictions. As of 2025, the UK’s private sector remains robust with 5.6 million businesses, many of which rely on the stability of highly skilled international talent.

5.6m private sector businesses in the UK are currently operating in a landscape where global talent mobility is essential for growth (Department for Business and Trade, 2025).

Determining Your Route to UK Settlement

The journey to ILR is rarely uniform. Eligibility is predicated on your current visa category and the duration of your continuous lawful residence in the UK. Most applicants follow a five-year path, though accelerated routes exist for specific high-value contributors.

The Five-Year Continuous Residence Requirement

For those on Skilled Worker, Global Talent, or Innovator Founder visas, the five-year mark is the standard threshold. Continuous residence implies that you have not spent more than 180 days outside the UK in any 12-month period. Whilst small business owners in London might find this easy to track, those managing cross-border trade in Northern Ireland must be particularly diligent with travel logs to ensure compliance.

Accelerated Paths for High-Value Investors and Innovators

Innovator Founders and certain Global Talent visa holders may be eligible to apply after just three years. This is particularly relevant for startups in tech hubs like Edinburgh or Manchester, where rapid scaling often aligns with a desire for permanent status. Government-backed bodies such as Scottish Enterprise or Business Wales often provide mentorship that touches upon the stability permanent residency offers to founding teams.

Evidence of Business Viability

If applying via the Innovator Founder route, your endorsing body must confirm that your business has shown significant achievements against your original business plan. Documentation from Companies House and HMRC will be scrutinised to prove your active role and the company's growth.

Essential Eligibility Criteria and Personal Requirements

Beyond time spent in the country, the Home Office requires evidence of integration and a commitment to the UK's legal and social framework. This involves both linguistic proficiency and a broader understanding of British life.

Meeting the English Language and Life in the UK Requirements

Unless exempt, most applicants must pass the 'Life in the UK' test and prove their English language proficiency to at least level B1. For professionals in the Midlands or the South West, local colleges often host the necessary testing centres. It is learnt through experience that booking these tests well in advance of your five-year anniversary is wise to avoid processing delays.

The General Grounds for Refusal and Good Character

The Home Office conducts rigorous background checks. This includes criminal records, tax discrepancies with HMRC, and any history of breaching immigration rules. Even small, unresolved civil penalties can jeopardise an application, so ensuring all personal and business liabilities are settled is paramount.

Professional Insight: In 2025, 76% of UK consumers research local businesses online before purchasing (Ofcom). Similarly, the Home Office increasingly utilises digital footprints and automated data sharing with HMRC to verify an applicant's financial history and "good character."

Financial Thresholds and Income Requirements

Financial stability is a cornerstone of the ILR application. You must demonstrate that you can support yourself and any dependants without recourse to public funds, often meeting specific salary requirements linked to your visa type.

Meeting the Salary Threshold for Skilled Workers

Skilled Worker visa holders must generally be paid at least the 'going rate' for their job code or a specific minimum threshold, whichever is higher. With SMEs making up 99.3% of UK businesses, many applicants are employed by micro-businesses where salary transparency and accurate PAYE reporting through HMRC are critical for a successful application.

Financial Requirements for Family and Dependants

If you are applying for ILR alongside a partner or children, the financial requirements increase. Evidence often includes six months of payslips and corresponding bank statements.

For those in Wales, Business Wales provides resources on financial management that can help micro-business owners ensure their personal drawings and dividends are documented correctly for such purposes.

Avoiding Common PAYE Discrepancies

Ensure that the salary recorded on your payslips matches the information held by HMRC exactly. Discrepancies between reported earnings and bank deposits are a common cause of "Request for Further Information" letters, which can delay your decision by months.

Documentation and the Digital Application Process

In 2026, the application process is almost entirely digital. The UK has moved away from physical 'Biometric Residence Permits' (BRPs) toward an e-visa system, making digital record-keeping more important than ever.

Organising Your Evidence Portfolio

A successful application requires a meticulous portfolio. This includes your passport, current visa, P60s, bank statements, and a letter from your employer (or endorsing body) confirming your continued employment and salary. In Scotland, businesses often work with Scottish Enterprise to ensure their international staff have the necessary documentation regarding the firm's standing and future viability.

Biometric Appointment and the UKVCAS System

Once your online application is submitted and the fee is paid, you must attend a biometric appointment to provide your fingerprints and a photograph. UKVCAS centres are located across the four nations, from Belfast to London. Whilst many centres offer free appointments, these are learnt to be highly sought after, and premium slots can cost upwards of £150.

4.2m micro-businesses in the UK often lack dedicated HR departments, meaning individual employees and owners must take personal responsibility for the accuracy of their ILR documentation (DBT, 2025).

Calculating Costs and Processing Times

Budgeting for ILR is a significant undertaking for any professional. The costs are substantial and generally increase annually in line with Home Office policy updates.

Application Fees and the Immigration Health Surcharge

As of 2026, the standard application fee for ILR exceeds £2,800 per person. Crucially, ILR applicants are generally exempt from the Immigration Health Surcharge (IHS) because they are moving to permanent status. However, if you are applying for a visa extension prior to ILR, the IHS remains a factor. For small businesses in Northern Ireland, cross-border trade benefits may be offset by these high entry costs for international talent.

Priority Services and Fast-Track Decisions

Standard processing times for ILR can take up to six months. For those who cannot be without their passport or require a decision for travel or property purchase, the Priority Service (5 working days) or Super Priority Service (next working day) are available for additional fees of £500 to £1,000. These costs are a necessary consideration for business leaders who must travel frequently for international trade.

Budgeting for Dependants

Remember that the application fee applies to each person. A family of four applying for ILR can face a combined bill of over £11,000, excluding legal fees or priority processing. Early financial planning is essential.

Specific Guidance for Business Owners and Innovators

If you are self-employed or a director of a limited company, the evidentiary requirements are more complex than for salaried employees.

The Role of Companies House and HMRC Evidence

Directors must provide an Unaudited or Audited Account for the last financial year, along with a Certificate of Incorporation from Companies House. Your business must be active and trading. For businesses in Wales, Business Wales often assists founders in ensuring their statutory filings are up to date, which is vital when the Home Office performs their "real-time" checks.

Proving Active Engagement and Contribution

You must demonstrate that you have been actively involved in the day-to-day management of the business. This can be evidenced through business contracts, marketing materials, and evidence of local customer engagement. With 71% of UK adults using smartphones for local searches, your business's digital presence (GMB profiles, local listings) can occasionally serve as secondary evidence of your active trading status.

Regional Variations and Local Support Networks

While immigration is a "reserved matter" (managed by the UK government in Westminster), the practicalities of business and settlement vary across the four nations.

Support for Businesses in Scotland and Wales

Scottish Enterprise and Business Wales provide specific support for international entrepreneurs. They do not give immigration advice but can help with the business growth metrics required for those on Innovator visas. In Scotland, the "TalentScotland" initiative can be a valuable resource for understanding the local landscape for international professionals.

Northern Ireland and the Windsor Framework

Business owners in Northern Ireland must manage the unique regulatory environment created by the Windsor Framework. When applying for ILR, ensuring your business is compliant with NI-specific VAT and trade rules is essential, as any compliance failure reported to HMRC could negatively impact the "good character" requirement of your residency application.

The Transition to British Citizenship

ILR is often the final step before applying for British Citizenship. Understanding the timeline and requirements for naturalisation is helpful for long-term planning.

The One-Year Rule for Naturalisation

Generally, you must hold ILR for at least 12 months before you can apply for British Citizenship. The only exception is if you are married to a British citizen, in which case you can often apply as soon as ILR is granted. For many business owners, citizenship offers the ultimate stability, removing the need for visa oversight entirely.

Maintaining ILR Status: The Two-Year Absence Rule

ILR can be lost if you stay outside the UK for a continuous period of more than two years (or five years for those under the EU Settlement Scheme). Business owners expanding into international markets must endeavour to return to the UK regularly to maintain their permanent residency status.

"How long does an ILR application take in 2026?"

Standard processing takes up to 6 months. Priority services can reduce this to 5 days or even 24 hours for an additional fee.

"Do I need to take the Life in the UK test for ILR?"

Yes, most applicants aged 18 to 64 must pass this test to demonstrate their integration into British society.

Common Pitfalls and How to Avoid Them

Even the most diligent professionals can make mistakes on their ILR application. Understanding these common errors can save time and money.

Inaccurate Absence Calculations

The 180-day rule is strictly enforced. Applicants often fail to account for travel days correctly. Remember that both the day of departure and the day of arrival are usually counted as days spent in the UK. Using a digital tracker or a dedicated spreadsheet is highly recommended for professionals who travel frequently for work.

Insufficient Documentation for "Continuous Employment"

If your employer has changed during your five years, you must show a seamless transition between roles. Any gaps in employment longer than 60 days can break your continuous residence, requiring you to restart your five-year clock. Always seek advice before resigning if you do not have a new Certificate of Sponsorship (CoS) ready.

Final Checklist for a Successful ILR Submission

Before you hit the submit button, perform a final audit of your application. The cost of failure is not just financial; it can disrupt your life and business in the UK significantly.

Verification of Financial Evidence

Check that every bank statement is in the correct format and that your salary matches your P60 and payslips. For directors, ensure your dividend vouchers are correctly dated and align with your company's accounting periods.

Reviewing the 'Good Character' Declaration

Be honest about any historical issues, including spent convictions or driving offences. Non-disclosure is often treated more harshly than the offence itself, as it constitutes "deception," which is a mandatory ground for refusal.

Frequently Asked Questions

Can I apply for ILR early if I have lived in the UK for a long time?

If you have lived in the UK lawfully for 10 years, you may be eligible for ILR under the 'Long Residence' rule, regardless of your visa type. This route has its own specific requirements regarding absences and continuous residence that differ slightly from the standard five-year employment routes.

What is the current cost for an ILR application in 2026?

As of early 2026, the standard fee is £2,885 per applicant. You do not usually pay the Immigration Health Surcharge for ILR, but you may need to pay for biometric appointments (£0–£200) and priority processing if required (£500–£1,000).

Will my ILR application be affected by my business being based in Scotland?

No, immigration is a UK-wide system. Whether your business is registered in Edinburgh, Cardiff, or London, the Home Office criteria remain the same. However, you should ensure your business is compliant with any specific Scottish regulations, such as non-domestic rates, as this forms part of your general compliance record.

What happens if my ILR application is refused?

If refused, you may have the right to an Administrative Review or an Appeal, depending on the grounds of the decision. Because a refusal can lead to a requirement to leave the UK, it is highly recommended to consult a qualified OISC-registered immigration advisor immediately if your application is not successful.

Is the Life in the UK test hard?

The test covers British history, law, and customs. While not inherently "hard" for those who study, the pass mark is 75%, and many questions are quite specific. Most applicants require at least two weeks of dedicated study using the official Home Office handbook to pass comfortably.

Do I need a lawyer to apply for ILR?

It is not a legal requirement, and many people complete the process themselves. However, for complex cases involving self-employment, historical absences, or dependants, an immigration solicitor can ensure your evidence is presented in a way that meets Home Office 'Caseworker Guidance' precisely.

Can I work while my ILR application is being processed?

Yes, as long as you applied before your previous visa expired, your right to work and live in the UK is protected under 'Section 3C leave' until a decision is made. You should not travel outside the Common Travel Area while your application is pending, as this will result in it being automatically withdrawn.

Can I use my personal address as my business address for ILR?

Yes, many micro-businesses use a home address for Companies House. However, you must prove the business is genuinely trading. If you have a separate office or warehouse in Wales or Northern Ireland, providing evidence of that commercial space can strengthen your application by proving 'genuine vacancy' or business substance.

What is the 'e-visa' and do I need a physical card?

By 2026, the UK has phased out physical BRP cards. Your ILR status will be held digitally and linked to your passport. You must ensure your 'UKVI Account' is up to date with your current passport details to avoid issues at the border when returning from international business trips.

Are there different rules for Northern Ireland businesses?

The immigration rules are identical. However, business owners in Northern Ireland should be careful about their travel to the Republic of Ireland. Frequent cross-border travel can accumulate and potentially exceed the 180-day absence limit if not tracked carefully, even if the travel is for a single afternoon.