Right to Work checks for SMEs do not need to be complicated. But they do need to be completed correctly and at the right time.
If you engage someone who does not have permission to do the work, your business may face a civil penalty. The fine can be up to £60,000 for each illegal worker if the correct checks were not carried out.
From 1 October 2026, the Right to Work scheme also applies to more working arrangements. It is no longer limited to traditional employees. The rules extend to people working under a worker contract and individual subcontractors, with separate provisions for certain online matching services.
For many small businesses, that means it is a good time to review recruitment, onboarding and subcontractor processes. This guide explains who you need to check, when to do it, which checking methods are available and what records you should keep.
What is a Right to Work check?
A Right to Work check confirms two things. First, the person can legally work in the UK. Second, they can do the type of work you are offering.
A correct check can give you a ‘statutory excuse’. This is a defence against a civil penalty if the person is later found to be working illegally.
The basic process is straightforward:
- Complete the check before work starts.
- Use the correct checking method for that person.
- Check that the information belongs to the person you are engaging.
- Check for any limits on the work they can do.
- Keep the required evidence and the date of the check.
- Carry out a follow-up check where the right to work is time-limited.
Right to Work checks for SMEs: who is covered from 1 October 2026?
The biggest change for many SMEs is the wider scope of the scheme.
From 1 October 2026, the rules apply where an individual is engaged:
- under a contract of employment or apprenticeship.
- under a worker contract.
- as an individual subcontractor; or.
- through certain online matching service arrangements.
This is particularly relevant if your business uses individual subcontractors or other people who personally provide work or services outside your normal payroll.
However, this does not mean that every self-employed contractor or business will automatically fall within the Right to Work regime. The key issue is the nature of the arrangement. If you are engaging an individual personally to carry out work or provide services, the requirements may apply. A genuinely independent business providing services to you may be treated differently.
The important point is not to rely on labels. Describing someone as ‘self-employed’ does not necessarily take them outside the rules. Equally, not every supplier or contractor relationship will be covered. Look at how the arrangement works in practice and take advice if you are unsure.
How to carry out a Right to Work check
1. Complete the check before the person starts
Do not leave the check until the first week of work. A Right to Work check should be part of your recruitment or onboarding process and completed before the person starts.
A simple sequence works well. Make the offer, complete the Right to Work check, save the evidence and finish the contract or engagement paperwork. The person can then start work.
2. Use the correct checking method
There is not one checking method for everyone. The correct route depends on the person’s nationality and immigration status.
Depending on the circumstances, the check may be completed by:
- using the Home Office online Right to Work service, usually with a share code.
- checking acceptable original documents where a manual check is permitted.
- using an eligible digital verification service for certain British and Irish citizens; or.
- using the Home Office Employer Checking Service in specific cases where status cannot be confirmed through the usual routes.
Do not rely on a passport copy sent by email on its own. You must use a checking process that meets the Home Office rules.
Useful GOV.UK tool: Check a job applicant’s right to work
3. Check the person and any work restrictions
The check is more than an admin exercise. You need to satisfy yourself that the information relates to the person who will work for you.
Check whether their permission is permanent or time-limited. You should also check whether there are restrictions on the type of work or the number of hours they can work.
If the information does not make sense, do not guess. Check the Home Office guidance or take advice before the person starts.
4. Record the check properly
Keep clear evidence of the check and record the date it was completed. The evidence you need will depend on the checking method used.
Home Office guidance requires the relevant evidence to be kept securely for the duration of the working relationship and for two years afterwards. It should then be securely destroyed.
Good records matter. If your business is ever asked to show that it carried out the correct check, you should be able to produce the evidence without having to reconstruct what happened months or years later.
5. Set reminders for follow-up checks
Some people have a time-limited right to work. In those cases, a follow-up check may be needed before the current permission ends.
This is easy to miss in a small business, especially where one person manages HR alongside other responsibilities. Add the expiry date to a reliable reminder system and allow enough time to deal with the next check.
6. Apply the process consistently
Use the same Right to Work process for everyone who falls within the scheme. Do not make assumptions based on a person’s name, accent, appearance, nationality or how long you think they have lived in the UK.
A consistent process helps you meet your immigration obligations and reduces the risk of discriminatory treatment during recruitment.
A practical example for an SME
Imagine a small construction business that uses several individual subcontractors. Historically, it has carried out formal Right to Work checks only for employees because it assumed subcontractors were responsible for their own arrangements.
From 1 October 2026, that assumption may leave the business exposed. It should review the individuals it engages outside payroll, decide which arrangements fall within the extended scheme and build the correct checks into its onboarding process before new work starts.
The important point is to look at the real working arrangement, not just the label on the contract.
Common Right to Work mistakes to avoid
- Doing the check after the person has started.
- Using the same checking method for everyone.
- Keeping a copy but failing to record the date of the check.
- Failing to check work restrictions or permitted hours.
- Forgetting a follow-up check where permission is time-limited.
- Assuming an individual subcontractor is outside the scheme because they are described as self-employed.
- Applying different standards to candidates based on nationality or appearance.
Right to Work checklist for small businesses
A straightforward process should include:
- a standard Right to Work step in your recruitment and onboarding checklist.
- a clear process for employees, workers and individual subcontractors where the rules apply.
- checks completed before work starts.
- the correct checking method for each person.
- secure evidence showing what was checked and when.
- a way to identify time-limited permission.
- reminders for follow-up checks; and.
- a named person who is responsible for completing and recording the checks.
Frequently asked questions
Do I need to check every self-employed person?
Not necessarily. From 1 October 2026, the scheme expressly extends to individual subcontractors, but the exact arrangement matters. Do not rely on the word ‘self-employed’ alone. Review how the individual is engaged and whether they personally carry out the work or services.
Can I carry out the Right to Work check after someone starts?
You should complete the prescribed check before the person starts work if you want to establish the statutory excuse. Make it a standard pre-start requirement rather than something to complete later.
How long should I keep Right to Work records?
Keep the required evidence securely for the duration of the working relationship and for two years after it ends. Then securely destroy it.
What if someone has a time-limited Right to Work?
You may need a follow-up check before their current permission ends. Record the relevant date and set a reminder well in advance.
In summary
Right to Work checks are manageable when you have a clear process. The biggest risks usually come from inconsistent checks, poor records or leaving the process until after someone has started.
The wider rules from 1 October 2026 mean SMEs should look beyond employees. They should also consider workers and individual subcontractors engaged outside normal payroll arrangements.
If you are unsure about your current process, JT HRConsultancy can help. We can review your Right to Work checks and put a practical process in place for your business.
